Bank Reconciliation Statement — Account STD 11 Commerce — Question

State four advantages of Accounting Standards.

Explain the following briefly with appropriate example:
Revenue Recognition (Realisation) Concept.

Distinguish between Revenue Reserves and Capital Reserves.

Prepare a Bank Reconciliation Statement in the books of Bharti as on 31st January 2017:

1. Balance as per Pass Book as on 31st January, 2017 was ₹ 62,500.
2. Cheque of ₹ 17,800 was issued by her on 28th January 2017 but this was not presented for payment till 31st January 2017.
3. A cheque of ₹ 4,000 issued to Mr. Rahim, was taken in the cash column.
4. A cheque of ₹ 15,000 was paid into bank but was omitted to be entered in the cash book.
5. The bank has charged ₹ 55 as its commission and has allowed interest ₹ 50.

Enter the following transactions in the Double Column Cash Book of M/s. Gupta Store:

2019		₹
June 1	Cash in Hand ₹ 800, Bank overdraft ₹ 5,700
June 7	Received a cheque from Bharati, discount allowed ₹ 150	3,250
June 9	Deposited the above cheque into Bank
June 15	Cheque received from Panna Lal	1,200
June 20	Bharati's cheque returned dishonoured
June 28	Panna Lal's cheque was endorsed to Kamal
June 30	Income tax paid by cheque	150

On 31st March, 2015 the Pass Book shows a credit balance of ₹ 9,000. Prepare a Bank Reconciliation Statement from the following particulars:-

		₹
1.	Cheques issued but not yet presented for payment	7,000
2.	Cheques issued but omitted to be recorded in the Cash Book	3,800
3.	Cheques paid into bank but not yet collected by the bank	2,600
4.	Premium on Life Policy paid by the bank on standing advice	360
5.	Payments received from customers direct by the bank	2,000

How is Cash Discount recorded in the books of account?

Give two examples of reserves.

Prepare Accounting Equation from the following:

1. Started business with cash ₹ 1,00,000.
2. Purchased goods for cash ₹ 20,000 and on credit ₹ 30,000.
3. Sold goods for cash costing ₹ 10,000 and on credit costing ₹ 15,000 both at a profit of 20%.
4. Paid salaries ₹ 8,000.

Prepare a Sales Book with atleast two items in it and show its posting.