Bank Reconciliation Statement — Account STD 11 Commerce — Question

Discuss the principle based on the premise "do not anticipate profits but provide for all losses."

Enter the following transactions in a Single Column Cash Book∶

2016		(₹)
May 1	Commenced business with Cash	25,000
May 3	Bought goods for Cash	10,000
May 3	Paid Carriage	200
May 4	Sold goods for Cash	6,000
May 10	Received from Ram	1,000
May 12	Paid to Shiv Kumar	2,600
May 15	Cash Sales	8,400
May 18	Purchased furniture for cash for office	5,000
May 20	Paid for Advertisement	500
May 20	Purchased goods from Mahesh on credit	6,000
May 24	Paid to Mahesh	4,000
May 25	Paid Wages	400
May 27	Received for Commission	1,500
May 28	Withdrew for personal use	2,200
May 31	Paid salary	700

Enter the following transactions in Return Outward Book of Modern Furniture House, Udaipur (Rajasthan) assuming CGST @ 6% and SGST @ 6% and post it into Ledger:

2017
Nov. 7	Returned to Sachdeva Furniture Store, Ahmedabad (Gujarat):
	5 Chairs @ ₹ 2,000 each
	1 Table for ₹ 15,000
	Less: 10% Trade Discount
Nov. 22	Returned 8 Chairs to India Furniture House, Jodhpur (Rajasthan) @ ₹ 1,500 each, being not of specified quality
Nov. 24	Returned one Dining Table to Arora & Co., Jaipur (Rajasthan) being not according to sample ₹ 50,000
Nov. 28	Allowance claimed from Delhi Furniture Shop, Ahmedabad (Gujarat) on account of mistake in the invoice ₹ 16,000

Ram owes ₹ 2,000 to Mohan on 1st January, 2019. On this date, he accepted a draft for the amount for 3 months. Mohan got the bill discounted at his bank @ 6% p.a. On the due date, the bill was dishonured, nothing charges ₹ 20. Ram agreed to pay ₹ 520 immediately and accept another bill for the remaining amount for 3 months together with interest at 9% p.a. This bill was met on the due date. Give the Journal entries in the books of both the parties.

What is Trial Balance? Does the balancing of this ensure accuracy of books of accounts.

During the course of an accounting year, an Accountant found a difference in the tiral balance. He puts this difference in a newly opened suspense account. Subsequently, he located the following errors in his books of account:

1. Goods purchased from Shiv for ₹ 10,000, but entered in sales book.
2. Received a bill receivable for ₹ 18,000 from Ganesh, but recorded in bills payable book.
3. An item of ₹ 4,000 in respect of purchases returns, wrongly debited to purchases account.
4. An item of ₹ 2,000 relating to pre-paid salary account omitted to be brought forward.
5. Paid ₹ 1,000 on account of repair of furniture, but wrongly debited to furniture account.

Pass journal entries to rectify the above mentioned errors and prepare suspense account assuming that no error remained undetected.

Anita purchased goods for ₹ 23,000 from Kavita on October 15, 2009 and accepted a bill of exchange drawn upon her by Kavita payable after two months. On the date of maturity the bill was duly presented for payment. Anita dishonoured the bill. The payee noted with ₹ 95 as noting charges.
Record the necessary journal entries in the books of Kavita and Anita, when (a) The bill was immediately discounted by Kavita with her Bank @ 9% p.a. (b) The bill was endorsed by Kavita in favour of her creditor Shankar after one month.

What are the methods of preparing trial balance?

The Cash Book of a merchant showed an overdraft balance of ₹ 15,700 on 31st December 2018. On comparing it with the Pass Book, the following differences were noted:

1. Cheques amounting to ₹ 12,250 were deposited into the bank, out of which cheques for ₹ 8,200 have been credited in the Pass Book on 2nd January, 2019.
2. Cheques were issued amounting to ₹ 8,300 of which cheques for ₹ 2,000 have been cashed upto 31st Dec.
3. A cheque of ₹ 4,250 issued to a creditor, has been entered in the Cash Book as ₹ 4,520.
4. Bank charges of ₹ 180 on 30th November 2018 and ₹ 240 on 30th December 2018 have not been entered in the Cash Book.
5. A B/R for ₹ 6,000 discounted with the bank is entered in the Cash Book without recording the discount charges of ₹ 300.
6. A cheque for ₹ 2,000 deposited into the bank appear in the Pass Book, but not recorded in the Cash Book.
7. A cheque for ₹ 3,700 deposited into the bank appear in the Pass Book, was recorded in the cash column of the Cash book.

You are required:

1. To make appropriate adjustments in the cash book, bringing down the correct balance.
2. To prepare a bank reconciliation statement with the adjusted balance.

Enter the following transactions in the 'Journal Proper' of Karuna Stores:

March 1	Purchased furniture on credit from Kuber Furniture Store for ₹ 15,000.
March 5	Goods for ₹ 6,000 given away as charity.
March 12	Goods worth ₹ 8,000 and Cash ₹ 4,000 were stolen by an employee.
March 15	Arun who owed us ₹ 20,000 was declared insolvent and nothing was received from him.
March 18	Proprietor withdrew for his personal use cash ₹ 5,000 and goods worth ₹ 10,000.
March 31	Provide interest on capital of ₹ 5,00,000 at 6% p.a. for full year.
March 31	Out of the rent paid this year, ₹ 5,000 is related to the next year.
March 31	Salaries due to clerks ₹ 12,000.