Special Purpose Books 2 Cash Book — Account STD 11 Commerce — Question

Prepare Bank Reconciliation Statement from the following:On 31st March, 2019, a merchant's Cash Book showed a credit bank balance of ₹ 10,500 but due to the following reasons the Pass Book showed a difference:

1. A cheque of ₹ 540 issued to Mohan has not been presented for payment.
2. A post-dated cheque for ₹ 100 has been debited in the bank column of the Cash Book but under no circumstances was it possible to present it.
3. Four cheque of ₹ 1,200 sent to the bank have not been collected so far. A cheque of ₹ 400 deposited in the bank has been dishonoured.
4. As per instructions, the bank paid ₹ 50 as Fire Insurance premium but the entry has not been made in the Cash Book.
5. There was a debit in the Pass Book of ₹ 15 in respect of bank charges and a credit of ₹ 25 for interest on Current Account but no record exists in the Cash Book.
6. Cheque of ₹ 5,000 dated 15th April, 2019 issued to M & Co. was dishonoured being post dated. It was also not recorded in the books of account yet.

Prepare Trading and Profit and Loss Account and Balance Sheet from the following balance, retating to the year ended 31st march, 2019:

Additional Information:

1. Closing Stock was valued at ₹ 14,500.
2. Depreciation Plant and machinery.
3. Write off Debts ₹ 5,000.
4. ₹ 400 is due for repairs.

On checking the Bank Pass Book it was found that it showed an overdraft of ₹ 5,220 as on 31st March, 2019, while as per Ledger it was different. The following differences were noted:

1. Cheques deposited but not yet credited by the bank ₹ 6,000.
2. Cheques dishonoured and debited by the bank but not given effect to it in the Ledger ₹ 800.
3. Bank charges debited by the bank but Debit Memo not received from the bank ₹ 50.
4. Interest on overdraft excess credited in the Ledger ₹ 200.
5. Wrongly credited by the bank to account, deposit of some other party ₹ 900.
6. Cheques issued but not presented for payment ₹ 400.

On 1st January, 2019, Naresh had an overdraft of ₹ 40,000 as shown by his Cash Book in the bank column. Cheques amounting to ₹ 10,000 had been deposited by him but were not collected by the bank by 1st January, 2019. He issued cheques of ₹ 7,000 which were not presented to the bank for payment up to that day. There was also a debit in his Pass Book of ₹ 600 for interest and ₹ 500 for bank charges.Prepare a Bank Reconciliation Statement.

Mention the subsidiary books in which following transactions are recorded along with reason thereof:

1. Purchase of furniture on credit for use in shop.
2. Sale of goods on credit.
3. Goods returned by Debtors.
4. Purchase of stock on credit.
5. Providing for interest on capital to proprietor.
6. Goods returned to creditors.
7. Sale of goods for cash.

Explain briefly any five advantages of computerised accounting system over the manual system.

Following are the balance extracted from the books of Manish on 31st March, 2019:

Prepare Trading and Profit and Loss Account and Balance Sheet as 31st March, 2019 after following adjustments are made:

1. Closing Stock was ₹ 16,000.
2. Depreciation Plant and Machinery @ 10% and Delivery Vehicle @ 15%.
3. Unpaid Rent amounted to ₹ 500.

A owed B ₹ 8,000. He gave a bill for the same on 1st August, 2018 payable after 4 months at the Bank of India, Chandni Chowk, Delhi. Immediately after receiving the bill, B endorsed it to C in payment of his debt. On 1st September, C discounted the bill at 12% p.a. The bill is met on due date.
Pass the necessary Journal entries in the books of A, B and C.