Rectification of Errors — Account STD 11 Commerce — Question

Journalise the following transactions in the books of Bhushan Agencies:

1. Received from Bharat cash ₹ 20,000, allowed him discount of ₹ 500.
2. Received from Vikas ₹ 35,000 by cheque, allowed him discount of ₹ 750.
3. Received from Akhil ₹ 38,000 in settlement of his dues of ₹ 40,000 in cash.
4. Received from Amrit ₹ 50,000 by cheque on account against dues of ₹ 60,000.
5. Paid cash ₹ 40,000 to suresh, availed discount of 2%.
6. Paid by cheque ₹ 25,000 to Mehar and settled her dues of ₹ 26,000.
7. Paid ₹ 25,000 to Yogesh by cheque on account.
8. Purchased goods costing ₹ 1,00,000 against cheque and availed discount of 3%.
9. Purchased goods costing ₹ 60,000 from Akash & Co., paid 50% immediately availing 3% discount.
10. Sold goods of ₹ 30,000 against cheque allowing 2% discount.
11. Sold goods of ₹ 60,000 to Vimal received 50% of due amount allowing 2% discount.

What is a Bank Reconciliation Statement? Explain any four points regarding need and importance of preparing a Bank Reconciliation Statement.

Enter the following transactions in a petty cash book in analytical form. The book is kept on imprest system, amount of imprest being ₹ 5,000.

2016
April 3	Petty Cash in hand ₹ 420. Received cash to make-up the imprest
	Bought stamps for ₹ 300
April 5	Paid for office cleaning ₹ 200 and repairs to furniture ₹ 250
April 7	Paid bus fare ₹ 440, railway fare ₹ 330, wages ₹ 200
April 8	Paid for charity ₹ 350
April 9	Bought shorthand note book for office ₹ 250, Carriage on parcels ₹ 280
April 10	Bought envelopes ₹ 450, served refreshment to customers ₹ 150
April 12	Paid for conveyance ₹ 300. Wages ₹ 200. Stapler pins ₹ 280
April 15	Gave tips to office peon ₹ 250

During the course of an accounting year, the accountant prepared a trial balance which did not tally. He put the difference in a suspense account. Subsequently, he located the following errors in his books of account:

1. The total of the returns outwards book, ₹ 21,500 has not been posted.
2. A sale of ₹ 4,300 to Ramesh has been credited to him as ₹ 3,400.
3. A sale of ₹ 2,960 to Shyam has been recorded in sales book as ₹ 2,690.
4. Old furniture sold for cash worth ₹ 5,400 has been posted in sales account as ₹ 4,500. There was no profit or loss on sale.
5. Goods taken by proprietor worth ₹ 1,000 have not been recorded in the books of account at all.

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

An extract of Trial balance from the books of Tahiliani and Sons Enterprises on March 31, 2017 is given below:

Name of the Account	Debit Amount	Credit Amount
	₹	₹
Sundry debtors	50,000
Bad debts	6,000
Provision for doubtful debts		4,000

Additional Information:

• Bad Debts proved bad but not recorded amounted to ₹ 2,000.
• Provision is to be maintained at 8% of Debtors.

Give necessary accounting entries for writing off the bad debts and creating the provision for doubtful debts account. Also show the necessary accounts.

Enter the following transactions in the petty cash book with appropriate analysis columns:

2017		(₹)
Feb. 1	Received from cashier ₹ 9,250, the amount required to make up the amount of the 'imprest' viz.	10,000
Feb. 3	Chowkidar's Wages	500
	Pencils, Pens etc.	250
Feb. 5	Bus fare to workmen sent to customer's premises	600
Feb. 7	Paid for wages	200
Feb. 10	Postage	800
Feb. 12	Three Wheeler's charges for manager's trip to the city	100
Feb. 12	Wages to casual labourer	850
Feb. 14	Repair of furniture	300
Feb. 14	Repair of scooter	400
Feb. 18	Taxi fare to assistant manager	750
Feb. 20	Refreshment to Customers	450
Feb. 22	Paid for cartage	1,500
Feb. 25	Locks purchased	1,200
Feb. 25	Conveyance	250
Feb. 26	Paid for writing pads and registers	900
Feb. 28	Courier Charges	550

Rectify the following errors:

1. Credit Sales to Mohan ₹ 7,000 were recorded in purchases book.
2. Credit Purchases from Rohan ₹ 9,00 were recorded in sales book.
3. Goods returned to Rakesh ₹ 4,000 were recorded in the sales return book.
4. Goods returned from Mahesh ₹ 1,000 were recorded in purchases return book.
5. Goods returned from Nahesh ₹ 2,000 were recorded in purchases book.

Enter the following transactions in Return Inward Book of M/s Kanitkar & Co. of Mumbai (Maharashtra) assuming CGST @ 2.5% and SGST @ 2.5% and post it into Ledger:

2018
Jan. 5	Goods returned to us by Giriraj & Co., Pune (Maharashtra) worth ₹ 40,000, less 10% trade discount
Jan. 10	Shah Brothers, Jaipur (Rajasthan) returned goods, being not according to sample ₹ 30,000
Jan. 16	Allowance claimed by Jai Singh & Co., Mathura (U.P) on account of a mistake in the invoice ₹ 10,000
Jan. 20	Good returned by Gopalsons, Mumbai being defective ₹ 20,000

From the following prepare Single Column Cash Book of Suresh, Chennai and post them into ledger accounts:

2019			₹
April 1	Cash in Hand		6,400
April 3	Received Cash from Anupama		1,00,000
April 4	Paid into Bank		80,000
April 5	Received from Bhumika as commission ₹ 6,000 plus CGST and SGST @ 6% each
April 6	Paid Wages		30,000
April 7	Withdrawn from Bank for expenses		30,000
April 8	Purchased goods from Ashok on credit of ₹ 10,000 plus CGST and SGST @ 6% each
April 9	Cash sales of ₹ 10,000 charged CGST and SGST @ 6% each
April 11	Drew Cash for domestic purposes		10,000
April 12	Purchased furniture for ₹ 4,000 plus CGST and SGST @ 6% each
April 13	Paid to Ruma		1,200
April 14	Paid to Ganguly Brothers for office fan ₹ 1,500 plus CGST and SGST @ 6% each
April 15	Paid own life insurance premium from office cash		800
April 16	Purchased stationery ₹ 1,000 plus CGST and SGST @ 6% each
April 17	Paid office expenses		500
April 18	Remitted to Raman		900
April 19	Paid electricity charges		100
April 20	Received interest from Gupta & Co.		500
April 30	Deposited all cash into bank in excess of		2,000