Books of Original Entry – Cash Book — Account STD 11 Commerce — Question

What is a Trial Balance? State any four functions of a Trial Balance.

Give four advantages of Straight Line Method of providing depreciation.

On 30th June 2014 Pass Book showed a balance of ₹ 5,200. Prepare Bank Reconciliation Statement from the following particulars:-

1. Out of total cheques amounting to ₹ 16,000 deposited, cheques amounting to ₹ 9,000 were credited in June 2014, Cheques amounting to ₹ 3,000 were credited in July 2014, and the rest have not been collected so far.
2. Out of total cheques amounting to ₹ 45,000 drawn, cheques amounting to ₹ 7,500 were presented in June 2014, Cheques amounting to ₹ 18,000 were presented in July 2014, and the rest have not been presented so far.
3. Amount wrongly credited by bank ₹ 3,400.
4. Payment side of the Cash Book has been undercast by ₹ 200.
5. Cheques recorded in the Cash Book in June 2014 but sent to bank in July 2014 ₹ 2,500.
6. A cheque of ₹ 20,000 deposited in the bank has been dishonoured but no intimation was received till June 2014.

Discuss Cash and Accrual Basis of Accounting.

Briefly explain your understanding of IFRS.

Mr. Gopal started business for buying and selling of readymade garments with ₹ 8,00,000 as an initial investment. Out of this he paid ₹ 4,00,000 for the purchase of garments and ₹ 50,000 for furniture and ₹ 50,000 for computers and the remaining amount was deposited into the bank. He sold some of the ladies and kids garments for ₹ 3,00,000 for cash and some garments for ₹ 1,50,000 on credit to Mr. Rajesh.
Subsequently, he bought men's garments of ₹ 2,00,000 from Mr. Satish. In the first week of the next month, a fire broke out in his office and stock of garments worth ₹ 1,00,000 was destroyed. Later on, some garments which cost ₹ 1,20,000 were sold for ₹ 1,30,000. Expenses paid during the same period were ₹ 15,000. Mr. Gopal withdrew ₹ 20,000 from business for his domestic use.
From the above, answer the following:

1. What is the amount of capital with which Mr. Gopal started the business?
2. What fixed assets did he buy?
3. What is the value of the goods purchased?
4. Who is the creditor and state the amount payable to him?
5. Who is the debtor and what is the amount receivable from him?
6. What is the total amount of expenses?
7. What is the amount of drawings of Mr. Gopal?

A Trial Balance disclosed a difference of ₹ 417 placed on the credit side of the Suspense Account. Later on the following errors were located:

1. Goods worth ₹ 200 purchased from Sohan had been posted to his account as ₹ 250.
2. A purchase of furniture for ₹ 500 was recorded in the Purchases Book.
3. Instead of crediting Gian’s Account with ₹ 512, it was debited with ₹ 215.
4. Goods worth ₹ 130 returned by Gian were entered in the Sales Book and posted therefrom to the credit of Gian’s Personal Account.

Pass the rectifying entries and prepare a Suspense Account.

Tiwari & Sons find that the bank balance shown by their Cash Book on 31st March, 2019 is ₹ 40,500 (credit) but the Pass Book shows a difference due to the following reasons:

1. A cheque for ₹ 5,000 drawn in favour of Manohar has not yet been presented for payment.
2. A post-dated cheque for ₹ 900 has been debited in the bank column of the Cash Book but it could not have been presented in any case.
3. Cheques totalling ₹ 10,200 deposited with the bank have not yet been collected and a cheque for ₹ 4,000 has been dishonoured.
4. A bill for ₹ 10,000 was retired by the Bank under a rebate of ₹ 150 but the full amount of the bill was credited in the bank column of the Cash Book.

Prepare Bank Reconciliation Statement and find out the balance as per Pass Book.

Prepare Accounting Equation on the basis of the following transactions:

1. Started business with cash ₹ 70,000.
2. Credit purchase of goods ₹ 18,000.
3. Payment made to creditors in full settlement ₹ 17,500.
4. Purchase of machinery for cash ₹ 20,000.

Give two examples of provisions.