Bills of Exchange — Account STD 11 Commerce — Question

Rectify the following errors:

1. Bought Radio for ₹ 1,000 for the proprietor was debited to General Expenses A/c.
2. Bought goods from Mohan ₹ 2,000 was passed through the Sales Book, however, the account of Mohan was credited correctly.
3. Wages due ₹ 1,500 has not been taken into account.
4. Goods Returned by Kamal ₹ 240 has been debited to his account ₹ 420.

From the following particulars prepare a bank reconciliation statement of Govil as on 31st December, 2014.
Balance as per Pass Book on 31st December 2014 is ₹ 8,500. Cheques for ₹ 5,100 were issued during the month of December but of these cheques for ₹ 1,200 were presented in the month of January 2015 and one cheque for ₹ 200 was not presented for payment. Cheques and cash amounting to ₹ 4,800 were deposited in bank during December but credit was given for ₹ 3,800 only. A customer has deposited ₹ 800 into bank directly. The bank credited the merchant for ₹ 200 as interest and has debited him for ₹ 30 as bank charges for which there are no corresponding entries in Cash Book.

Give a definition of Bill of Exchange and give its four characteristics.

Distinguish between “Straight Line Method' and 'Written Down Value Method' of providing depreciation.

Prepare a Bank Reconciliation Statement in the books of Bharti as on 31st January 2017:

1. Balance as per Pass Book as on 31st January, 2017 was ₹ 62,500.
2. Cheque of ₹ 17,800 was issued by her on 28th January 2017 but this was not presented for payment till 31st January 2017.
3. A cheque of ₹ 4,000 issued to Mr. Rahim, was taken in the cash column.
4. A cheque of ₹ 15,000 was paid into bank but was omitted to be entered in the cash book.
5. The bank has charged ₹ 55 as its commission and has allowed interest ₹ 50.

From the following information, prepare an Analytical Petty Cash Book:

2019		₹
April 1	Received for cash payment	20,000
April 2	Paid for postage	1,600
April 5	Paid for stationery	1,000
April 8	Paid for advertisement	2,000
April 12	Paid for wages	800
April 16	Paid for carriage	600
April 20	Paid for conveyance	880
April 25	Paid for travelling expenses	3,200
April 27	Paid for postage	480
April 28	Paid for office cleaning	400
April 29	Paid for courier	800
April 30	Sent registered notice to landlord	190

From the following items prepare a Bank Reconciliation Statement on 31st May 2015:

1. Bank balance as per Cash Book on 31st May 2015 ₹ 17,600.
2. Cash and cheques totalling ₹ 36,000 were sent to bank during May but one cheque of ₹ 11,800 was shown in the Pass Book on 2nd June.
3. As per instructions bankers have directly collected ₹ 4,100 from a customer but there is no mention of it in the Cash Book.
4. Three cheques for ₹ 10,000, ₹ 12,000 and ₹ 4,800 respectively were drawn on 27th May but the cheque for ₹ 4,800 was encashed on 1st June.
5. On 31st May bankers had debited ₹ 45 as bank charges but had intimated it on 3rd June.
6. ₹ 16,200 were withdrawn from bank on 25th May but there is no entry for it in the Cash Book.

Prepare Bank Reconciliation Statement as on 31st January, 2017, if Cash Book of Mr. Sanjay showed a credit balance of ₹ 20,100.

1. The bank had paid fire insurance premium of ₹ 550 which does not appear in the Cash Book.
2. Cheques for ₹ 25,000 issued during January, but cheques for only ₹ 18,500 were presented for payment.
3. Interest collected by bank ₹ 740.
4. Cheques of ₹ 8,700 were deposited into bank, but cheques for ₹ 7,000 were cleared till 31st January, 2017.
5. A customer deposited ₹ 620 directly into bank without informing Mr. Sanjay.

Journalise the following transactions:

1. Goods destroyed by Fire for ₹ 5,000.
2. Paid by cheque ₹ 25,000 as wages on installation of a Machinery.
3. Issued a cheque in favour of M/s Parmatma Saran & Sons on account of purchase of goods ₹ 75,000.
4. Goods sold costing ₹ 60,000 to M/s Kalu Sons at an invoice price 10% above cost less 5% Trade discount.