Provisions and Reserves — Account STD 11 Commerce — Question

Prepare Bank Reconciliation Statement as on 31st January, 2017, if Cash Book of Mr. Sanjay showed a credit balance of ₹ 20,100.

1. The bank had paid fire insurance premium of ₹ 550 which does not appear in the Cash Book.
2. Cheques for ₹ 25,000 issued during January, but cheques for only ₹ 18,500 were presented for payment.
3. Interest collected by bank ₹ 740.
4. Cheques of ₹ 8,700 were deposited into bank, but cheques for ₹ 7,000 were cleared till 31st January, 2017.
5. A customer deposited ₹ 620 directly into bank without informing Mr. Sanjay.

A Company purchased a second-hand machine on 1st April, 2016, for ₹ 30,000 and immediately spent ₹ 4,000 on its repair and ₹ 1,000 on its installation. On Oct. 1, 2018, the machine was sold for ₹ 25,000. Prepare Machine Account after charging depreciation @ 10% p.a. by diminishing balance method, assuming that the books are closed on 31st March every year. IGST was charged @12% on purchase and sale of machine.

Name the qualitative characteristics of accounting information. Explain any two of them.

Journalise the following in the books of Hari.
Sohan informs Hari that Mohan's acceptance for ₹ 13,000, endorsed in favour of Sohan by Hari, has been dishonoured. Sohan agrees to accept ₹ 3,000 in cash and an acceptance at 3 months together with interest @ 12% per annum.

Rectify the following errors:

1. Credit sales to Mridula ₹ 5,000 were recorded as ₹ 500.
2. Credit purchases from Nayna ₹ 8,000 were recorded as ₹ 800.
3. Goods returned to Priya ₹ 12,000 were recorded as ₹ 1,200.
4. Goods returned from Rashi ₹ 10,000 were recorded as ₹ 1,000.

Prepare a debit voucher for furniture purchased for ₹ 60,000 from Globe Furniture Mart on 02-01-2017.

Give the similarities of Cash Book with Journal?

State the need for the preparation of bank reconciliation statement?

Prepare Bank Reconciliation Statement from the following particulars on June 30, 2016:
Bank Statement showed a favourable balance of ₹ 9,214.

1. On 29th June, the bank credited the sum of ₹ 1,650 in error.
2. Certain cheques, valued at ₹ 4,500 issued before June 30, were not cleared.
3. A hire purchase payment of ₹ 950, made by a standing order was not entered in the cash book.
4. A cheque of ₹ 600 received, deposited and credited by bank, was accounted as a receipt in the cash column of the cash book.
5. Other cheques for ₹ 8,500 were deposited in June but cheques for ₹ 6,000 only were cleared by the bankers.

On 15th February, 2019, X sold goods to Y for ₹ 60,000. On the same day, Y accepted a bill drawn upon him by X for three months for ₹ 60,000. X immediately discounted the bill at 15% p.a. at his bank and Y met the bill on maturity. Make Journal entries in the books of both the parties.