Question
Rectify the following errors:
  1. Credit sales to Mridula ₹ 5,000 were recorded as ₹ 5,400.
  2. Credit purchases from Nayna ₹ 8,000 were recorded as ₹ 8,800.
  3. Goods returned to Priya ₹ 12,000 were recorded as ₹ 12,200.
  4. Goods returned from Rashi ₹ 10,000 were recorded as ₹ 11,000.

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The balance of cash at bank as shown by the Cash Book of Pan & Co. on $31$st December, $2016,$ was $₹ 7,500.$ On checking the entries in the Cash Book with the Pass Book, it was ascertained that cheques of $₹ 500$ and $₹ 700$ respectively paid in on 30th December, were not credited until the $2$nd January following and three cheques of $₹ 600,\  ₹ 800$ and $₹ 1,200$ issued on the $28$th December were not presented until the $3$rd of January. There was a credit of $₹ 125$ in the Pass Book in respect of interest under date $31$st December, which was not entered in the Cash Book. There were also Bank Charges debited in the Pass Book amounting in all to $₹ 10$ which were not entered in the Cash Book. Prepare a Bank Reconciliation Statement as at $31$st December,$ 2016.$
Rectify the following errors by passing Journal entries:
  1. Old furniture sold for ₹ 500 has been credited to Sales Account.
  2. Machinery purchased on credit from Raman for ₹ 2,000 recorded through Purchases Book as ₹ 16,000.
  3. Cash received from Rajat ₹ 5,000 was posted to the debit of Bhagat as ₹ 6,000.
  4. Depreciation provided on machinery ₹ 3,000 was posted to Machinery Account as ₹ 300.
Journalise the following transactions:
2019
 
March 5
Sold goods to Shruti for ₹ 80,000 at 15% trade discount and 4% cash discount. Received 75% amount immediately through a cheque.
March 10
Purchased goods from Richa for ₹ 60,000 at 10% trade discount and 5% cash discount. 60% amount paid by cheque immediately.
State the meaning of a trial balance?
What is the imprest system of Petty Cash Book?
When you proceed to reconcile the Bank Account starting with 'Debit' Cash Book balance. how is the following dealt with and why?
  1. Cheques issued but not presented for payment.
  2. Cheques deposited but not yet credited.
  3. Bank charges charged by the bank not recorded in the Cash Book.
  4. Interest allowed by the bank not recorded in the Cash Book.
Govind maintains his Current Account with HDFC Bank. On 31st March, 2023, the bank column of Cash Book showed an overdraft of ₹ 42,000 in his Current Account. From the following particulars, prepare Bank Reconciliation Statement as on 31st March, 2023:
i. A cheque of ₹ 1,040 deposited was dishonoured and bank charges debited in the Pass Book were ₹ 110 . It was not recorded in the Cash Book.
ii. Out of the total cheques of ₹ 1,00,000 issued, cheques aggregating ₹ 30,000 were debited in March, cheques aggregating ₹ 40,000 were debited in April, and the rest have not yet been debited.
iii. Payments side of the Cash Book is undercast by ₹ 3,000 .
iv. A cheque of ₹ 4,000 received from Om on 20th March, 2023 was recorded in the discount column of the Cash Book and was not banked.
v. ₹ 80 for bank charges were recorded two times in the Cash Book whereas bank levied annual charges of ₹ 70 , which were not recorded in the Cash Book.
Y purchased goods for ₹ 6,000 on 1st June, 2011 from X and on the same date accepted a bill payable after three months. 3 days later, X endorsed the bill to Z. On maturity, the bill was dishonoured for non-payment and Z had to pay ₹ 50 as noting charges. Two days after the dishonour of bill, Y paid ₹ 2,000 to X and requested him to draw a second bill for the balance plus ₹ 90 for the amount of interest, payable after two months. X accepted the proposal and draws the bill on Y, which was accepted by Y and was duly met on maturity. Pass Journal entries for the above transactions in the books of X.
State the rules of debiting and crediting of accounts.
Jouranlise the following transactions in the books of Harpreet Bros:
  1. ₹ 1,000 due from Rohit are now bad debts.
  2. Goods worth ₹ 2,000 were used by the proprietor.
  3. Charge depreciation @ 10% p.a for two month on machine costing ₹ 30,000.
  4. Provide interest on capital of ₹ 1,50,000 at 6% p.a. for 9 months.
  5. Rahul become insolvent, who owed is ₹ 2,000 a final dividend of 60 paise in a rupee is received from his estate.