Theory Base of Accounting — Account STD 11 Commerce — Question

On 31st December, 2014, pass book shows debit balance of ₹ 7,500. From the following particulars, prepare a Bank Reconciliation Statement:

1. Cheques paid in for collection amounted to ₹ 20,600 but cheques of ₹ 7,800 were credited on 3rd January, 2015.
2. A cheque of ₹ 1,000 debited in cash book was omitted to be banked.
3. Cheques of ₹ 7,800 were drawn on 27th December of which cheques of ₹ 2,400 were cashed upto 31st December.
4. A cheque of ₹ 800 was banked and credited, but omitted to be recorded in cash book.
5. Bank charged interest on Overdraft ₹ 650.

Rectify the following errors:

1. Credit sales to Mohan ₹ 7,000 were recorded as ₹ 7,200.
2. Credit purchases from Rohan ₹ 9,000 were recorded as ₹ 9,900.
3. Goods returned to Rakesh ₹ 4,000 were recorded as ₹ 4,040.
4. Goods returned from Mahesh ₹ 1,000 were recorded as ₹ 1,600.

Put the following on the proper side of Cash account, Debtor's account and Creditor's account:

1. Sold goods for cash ₹ 60,000.
2. Sold goods to Hari on credit ₹ 20,000.
3. Purchased goods from Krishan on credit ₹ 36,000.
4. Purchased goods from Krishan for cash ₹ 10,000.
5. Cash received from Hari ₹ 15,000.
6. Cash paid to Krishan ₹ 28,000.

Prepare an imaginary specimen of a promissory note.

On 31st December, 2014 the Cash Book of Basu showed an overdraft of ₹ 18,000 with the Bank of India. The balance did not agree with balance as shown by the Bank Pass Book and you find that Basu had paid into the Bank on 26th December four cheques for ₹ 10,000; ₹ 12,000; ₹ 6,000 and ₹ 8,000. Of these the cheque for ₹ 6,000 was credited by the bank in January, 2015. Basu had issued on 24th December three cheques for ₹ 15,000, ₹ 12,000, and ₹ 7,000. The first two cheques were presented to the bank for payment in December and the third in January, 2015.
You also find that on 31st December, 2014, the bank had debited Basu's Account for ₹ 500 for interest and ₹ 20 for charges but Basu has not recorded these amounts in his books.
You are required to prepare a Bank Reconciliation Statement as on 31st December, 2014 and ascertain the balance as per bank Pass Book.

On 31st December, 2014, pass book shows debit balance of ₹ 7,500. From the following particulars, prepare a Bank Reconciliation Statement:

1. Cheques paid in for collection amounted to ₹ 20,600 but cheques of ₹ 7,800 were credited on 3rd January, 2015.
2. A cheque of ₹ 1,000 debited in cash book was omitted to be banked.
3. Cheques of ₹ 7,800 were drawn on 27th December of which cheques of ₹ 2,400 were cashed upto 31st December.
4. A cheque of ₹ 800 was banked and credited, but omitted to be recorded in cash book.
5. Bank charged interest on Overdraft ₹ 650.

Why is it important to adopt a consistent basis for the preparation of financial statements? Explain.

Explain the following terms with examples:

1. Capital Expenditure
2. Non-Current Assets

Distinguish between an accomodation bill and a trade bill.

Balance as per passbook of Mr. Kumar is 3,000.

1. Cheque paid into bank but not yet cleared Ram Kumar ₹ 1,000 Kishore Kumar ₹ 500
2. Bank Charges ₹ 300
3. Cheque issued but not presented Hameed ₹ 2,000 Kapoor ₹ 500
4. Interest entered in the passbook but not entered in the cash book ₹ 100 Prepare a bank reconciliation statement.