Bills of Exchange — Account STD 11 Commerce — Question

On 15th February, 2019, X sold goods to Y for ₹ 60,000. On the same day, Y accepted a bill drawn upon him by X for three months for ₹ 60,000. X immediately discounted the bill at 15% p.a. at his bank and Y met the bill on maturity. Make Journal entries in the books of both the parties.

i. On 31st March, 2023, the Bank Pass Book of Renu Enterprises showed a credit balance of ₹ 15,000 .
ii. Before that date, she had issued cheques amounting to ₹ 8,000 out of which cheques of ₹ 3,200 were presented for payment till 31st March, 2023.
iii. A cheque of ₹ 2,200 deposited by her into the bank on 28th March, 2023 is not yet credited in the Bank Pass Book.
iv. She had also received a cheque of ₹ 500 which although entered by her in the bank column of Cash Book, was omitted to be paid into the bank.
v. On 30th March, 2023, a cheque of₹ 1,570 received by her was paid into the bank but the same was omitted to be recorded in the Cash Book.
vi. There was a credit of ₹ 150 for interest on current account and a debit of ₹ 25 for bank charges.
vii. A wrong credit of ₹ 2,000 was given by bank on 27th March, 2023 and was reversed on 10th April, 2023.
Prepare Bank Reconciliation Statement as on 31st March, 2023.

Explain the following terms:

1. Revenue.
2. Trade Payables.
3. Fictitious Assets.
4. Working Capital.

Working Capital = Current Assets - Current Liabilities.

Give rectifying entries for the following:

1. ₹ 5,400 received from Mr. A was posted to the debit of his account.
2. The total of Sales Return Book overcasted by ₹ 800.
3. ₹ 2,740 paid for repairs to motor car was debited to Motor Car Account as ₹ 1,740.
4. Returned goods to Shyam ₹ 1,500 were passed through Returns Inward Book.

Show the effect of the following transactions on Assets, Liabilities and Capital through accounting equation:

a.	Started business with cash	₹ 1,20,000
b.	Rent received	₹ 10,000
c.	Invested in shares	₹ 50,000
d.	Received dividend	₹ 5,000
e.	Purchase goods on credit from Ragani	₹ 35,000
f.	Paid cash for house hold Expenses	₹ 7,000
g.	Sold goods for cash (costing ₹ 10,000)	₹ 14,000
h.	Cash paid to Ragani	₹ 35,000
i.	Deposited into bank	₹ 20,000

(Ans: Assets = Cash ₹ 37,000 + Shares ₹ 50,000 + Goods ₹ 25,000 + Bank ₹ 20,000 = ₹ 1,32,000; Liabilities = Capital ₹ 1,32,000)

Prepare Accounting Equation from the following:

1. Started business with Cash ₹ 2,00,000.
2. Purchased goods for Cash ₹ 60,000 and on Credit ₹ 1,50,000.
3. Sold goods for Cash costing ₹ 40,000 at a profit of 20% and on Credit costing ₹ 72,000 at a profit of 25%.
4. Paid for Rent ₹ 5,000.

Prepare Purchases Return Book of Aruna Stores, Kolkata from the following transactions and post them into Ledger:

Distinguish between an accomodation bill and a trade bill.

Prepare a debit voucher for furniture purchased for ₹ 60,000 from Globe Furniture Mart on 02-01-2017.

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.