Trial Balance and Rectification of Errors — Account STD 11 Commerce — Question

Prepare double column cash book from the following transactions for the year August 2017:

		₹
01	Cash in hand	17,500
	Cash at bank	5,000
03	Purchased goods for cash	3,000
05	Received cheque from Jasmeet	10,000
08	Sold goods for cash	7,000
10	Jasmeet’s cheque deposited into bank
12	Purchased goods and paid by cheque	20,000
15	Paid establishment expenses through bank	1,000
18	Cash sales	7,000
20	Deposited into bank	10,000
24	Paid trade expenses	500
72	Received commission by cheque	6,000
29	Paid Rent	2,000
30	Withdrew cash for personal use	1,200
31	Salary paid	6,000

On 30th June, 2016, the pass book of Nataraj showed a bank overdraft of ₹ 46,000. The following additional information is available. You are required to prepare a bank reconciliation statement as on the above mentioned date:

1. Out of total cheques issued, cheques for ₹ 22,000 have not been presented for payment so far.
2. Cheques paid into bank for collection, but not yet cleared total ₹ 31,000.
3. Bank has charged ₹ 2,300 as interest on overdraft; it does not appear in cash book.
4. A customer has directly deposited ₹ 8,300 with bank in Nataraj's account for which there is no entry in cash book.
5. Dividend on shares collected by bank and credited in the pass book amounts to ₹ 2,000 for which no intimation has been given to Nataraj so far.
6. A bill for ₹ 10,000 discounted with the bank was dishonoured on maturity. Bank has debited Nataraj with ₹ 10,100 including ₹ 100 for noting charges, the transaction has not yet been recorded in cash book.

Pass entries in the books of all parties in the following cases assuming CGST @ 6% and SGST @ 6%:

2018
March 1	Mahesh Chandra of Bihar purchased goods for ₹ 1,00,000 from Sunil Soren of Jharkhand and sold the same to Deepak Patnaik of Odisha for ₹ 1,50,000.
March 5	Deepak Patnaik sold goods to Suresh Yadav of Odisha for ₹ 1,80,000.
March 10	Suresh Yadav sold goods to Ravi Chakravarti of West Bengal for ₹ 2,50,000.
March 14	Ravi Chakravarti sold goods costing ₹ 2,50,000 to Sanjay Diwedi of West Bengal at a profit of 40% on cost.

From the following particulars, prepare a Bank Reconciliation Statement of Alpha Electronic Motor. Private Ltd. as on 30th September, 2014:

1. Overdraft on 30th September 2014 as per Pass Book ₹ 10,000.
2. Cheque deposited in the bank but not recorded in Cash Book ₹ 100.
3. Cheque received and recorded in the Cash Book but not sent to bank for collection ₹ 1,000.
4. Several cheques were drawn in the last week of September, totalling ₹ 15,000; of these cheques totalling only ₹ 9,000 were cashed before 30th September.
5. Similarly, several cheques, totaling ₹ 9,000 were sent for collection; of these cheques of the value of ₹ 1,500 were credited on 5th October and ₹ 2,000 on 7th October, balance being credited before 30th September.
6. Fees of ₹ 250 was paid directly by the bank but was not recorded in the Cash Book.
7. In the Cash Book, a bank charge of ₹ 30 was recorded twice while another bank charge of ₹ 50 was not recorded at all.
8. Interest of ₹ 1,400 was charged by the bank but was not recorded in the Cash Book.

Prepare a Bank Reconciliation Statement from the following particulars as on 31st March 2015:

1. Cheques were deposited into bank on 25th March for ₹ 20,000. Out of these cheques for ₹ 8,000 were cleared on 4th April, cheques for ₹ 6,000 on 6th April and one cheque for ₹ 1,400 was dishonoured on 7th April.
2. Cheques amounting to ₹ 12,000 were issued in March, out of which cheques for ₹ 2,000 were encashed upto 31st March.
3. A bill for ₹ 5,000 (discounted with the bank in January) dishonoured on 30th March 2015 and noting charges paid by bank ₹ 50. No information regarding the dishonour was received from the bank in March 2015.
4. Cheque issued to a creditor for ₹ 2,000 was through mistake entered in the cash column of the Cash Book. The same has not been presented for payment till today.
5. Receipt side of the Cash Book (bank column) was undercast by ₹ 100.
6. Bank has paid a bill payable amounting to ₹ 2,500 but it has not been entered in the Cash Book.
7. A cheque for ₹ 2,000 issued to Mr. X was omitted to be recorded in Cash Book.
8. Dr. balance as per Pass Book was ₹ 7,200.

Journalise the following transactions in the books of Manoj Store:

1. Purchased goods from Ramesh ₹ 20,000 less Trade Discount at 20% plus IGST @ 12% .
2. Sold goods costing ₹ 7,000 to Krishna for ₹ 9,000 plus IGST @ 12%.
3. Sold goods for ₹ 10,000 and charged IGST @ 12% against cheque.
4. ₹ 5,000 were deposited into Savings Account.
5. Machinery costing ₹ 4,00,000 for which order was placed earlier paying advance of ₹ 40,000. The balance amount was paid as follows:
6. An old machine (personal) valued at ₹ 30,000 was given in exchange:

1. Issued a cheque from his savings account for ₹ 1,30,000.
2. Balance by issue cheque from firm's bank account.
3. Paid wages ₹ 2,500 for installation of machine.

Write short note on ‘Original Cost Method of providing depreciation with a suitable example.

Record the following transactions in a Petty Cash Book drawn with suitable columns and then balance the same:

2017		(₹)
Jan. 1	Petty cashier is given a monthly imprest amount of ₹ 10,000. He spent last month ₹ 9,200 and got the balance from the head cashier today.
Jan. 2	Paid for Wages	600
Jan. 3	Paid for sundry expenses	100
Jan. 5	Paid for stationery	700
Jan. 9	Paid for courier charges	200
Jan. 12	Stamps purchased	750
Jan. 14	Paid wages to casual labour	500
Jan. 16	Stationery purchased	400
Jan. 19	Paid for general expenses	610
Jan. 20	Paid for cartage	800
Jan. 22	Paid for advertising	900
Jan. 24	Paid for postage	400
Jan. 25	Paid for Taxi Fare	840
Jan. 27	Paid for entertainment	600
Jan. 29	Paid for carriage	500
Jan. 31	Paid for petty repairs	700

Rectify the following errors found in the books of Mr. Aryan by passing entries:

1. The purchase of ₹ 610 from Kabir was entered into sales book but Kabir's personal account was rightly credited.
2. Sale of old furniture of ₹ 2,500 was credited to sales account as ₹ 250.
3. An item of ₹ 500 relating to prepaid insurance account was omitted to be brought forward from the previous year's books.
4. ₹ 220 discount received from a creditor had been duly entered in his account but not posted to discount received account.

Prepare a Petty Cash Book on the Imprest System from the following:

2017
April 1	Received ₹ 10,000 for Petty Cash
April 3	Paid Cartage ₹ 800
April 4	Paid Bus Fare ₹ 400; Speed Post ₹ 200
April 6	Paid for Stationery ₹ 700
April 7	Paid for Courier Services ₹ 300
April 9	Paid for Taxi fare ₹ 800; Wages ₹ 300
April 10	Paid for Wages ₹ 400; Charity ₹ 500
April 11	Paid for Newspaper bill ₹ 600
April 12	Paid for soap ₹ 320; Speed post charges ₹ 300
April 13	Paid for Postage ₹ 780
April 14	Paid for Repairs of Chairs ₹ 500
April 15	Paid for Refreshment to customers ₹ 900