Bill of Exchange — Account STD 11 Commerce — Question

Prepare the trial balance of Mahesh as on 31st March, 2023. He has omitted to opena Capital Account:

	₹		₹
Bank Overdraft	95,000	Purchases	4,45,000
Sales	8,10,000	Cash in Hand	8,500
Purchases Return	22,500	Creditors	2,15,000
Debtors	4,00,500	Sales Return	15,750
Wages	96,000	Equipment	25,000
Capital	?	Opening Stock	3,00,500

On 31st March, 2023, Bank Statement of Gopal shows credit balance of ₹ 33,570
whereas Cash Book showed debit balance of ₹ 53,000.
It was observed that the differences were because of the following:
i. Cheques and drafts sent to the bank but not collected and credited, amounted to ₹ 7,900 while cheque for ₹ 2,000 was received unpaid.
ii. Three cheques drawn for ₹ 3,000; ₹ 1,500 and ₹ 2,000 respectively were not presented for payment till 30th April, 2023.
iii. Bank has paid a cheque of ₹ 10,000 but it has not been entered in the Cash Book and a cheque of ₹ 5,000 which was discounted with the bank was dishonoured by the drawee on the due date.
iv. Bank has charged ₹ 130 as its commission for collecting outstation cheques and had credited an interest of ₹ 100 in the account.
v. A wrong debit of ₹ 5,000 was made by the bank, which was reversed on 4th April, 2023. Prepare Bank Reconciliation Statement as on 31st March, 2023.

From the following information, prepare an Analytical Petty Cash Book:

2019		₹
April 1	Received for cash payment	20,000
April 2	Paid for postage	1,600
April 5	Paid for stationery	1,000
April 8	Paid for advertisement	2,000
April 12	Paid for wages	800
April 16	Paid for carriage	600
April 20	Paid for conveyance	880
April 25	Paid for travelling expenses	3,200
April 27	Paid for postage	480
April 28	Paid for office cleaning	400
April 29	Paid for courier	800
April 30	Sent registered notice to landlord	190

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

1. One item of purchase of ₹ 250 has been posted from the purchases book to the ledger as ₹ 350.
2. Sales return of ₹ 2,000 from a party has not been posted to that account, through the party's account has been credited.
3. A cheque of ₹ 600 issued to the suppliers account (shown under Sundry Creditors) toward his dues had been wrongly debited to the purchases account.
4. Credit sale of ₹ 1,000 has been credited to the sales and also to the Sundry Debtor's Account.

On Ist January 2017, Rakesh had an overdraft of ₹ 8,000 as showed by his cash book. Cheques amounting to ₹ 2,000 had been paid in by him but were not collected by the bank by January 01, 2017. He issued cheques of ₹ 800 which were not presented to the bank for payment up to that day. There was a debit in his passbook of ₹ 60 for interest and ₹ 100 for bank charges. Prepare bank reconciliation statement for comparing both the balance.

Complete the following Rectification Entries:

There was a difference of ₹ 720 in the Trial Balance which has been transferred to the credit side of the Suspense Account. Pass the rectifying entries and prepare a Suspense Account to rectify the following errors:

1. An amount of ₹ 375 now posted on the debit side of the Commission Account instead of ₹ 275.
2. Credit amount of ₹ 260 posted to the debit of the Personal Account as ₹ 360.
3. Goods sold to Surinder recorded in Purchases Book ₹ 300.
4. D’s bill for erection of godown at a cost of ₹ 1,200 has been charged to the Repairs Account.

On Jan. 1, 2017, Tarun purchased goods from Arun for ₹ 20,000 and immediately drew a promissory note in favour of Arun payable after 1 month. Date of maturity of the promissory note was declared emergency holiday by the Government of India under the Negotiable Instrument Act 1881. Tarun met the promissory note according to the provisions of law.
Pass the necessary Journal entries in the books of Arun and Tarun.

Give a definition of Bill of Exchange and give its four characteristics.

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.