Question
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.

Answer

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When you proceed to reconcile the Bank Account starting with 'Debit' Cash Book balance. how is the following dealt with and why?
  1. Cheques issued but not presented for payment.
  2. Cheques deposited but not yet credited.
  3. Bank charges charged by the bank not recorded in the Cash Book.
  4. Interest allowed by the bank not recorded in the Cash Book.
What is petty cash book? How it is prepared?
Write the difference between return Inwards and return ouwards.
  1. Mohan started a business on $1^{\text {st }}$ April, $2018$ with a capital of $₹ 10,000$ and borrowed $₹\ 3,000$ from a friend. He earned a profit of $₹\ 5,000$ during the year ended $31^{\text {st }}$ March, 2019 and withdrew cash $₹\ 4,000$ for personal use. What is his capital on $31^{\text {st }}$ March, $2019?$
  2. Mahesh started a business with a capital of $₹\ 15,000$ on $1^{\text {st }}$ April, $2018.$ During the year, he made a profit of $₹$ 3,000. He owes $₹\ 2,500$ to suppliers of goods. What is the total of assets in his business on $31^{\text {st }}$ March, $2019?$
State whether the balance of the following accounts should be placed in the debit (or) the credit columns of the Trial Balance:
  1. Plant and Machinery
  2. Discount Allowed
  3. Bank Overdraft
  4. Sales
  5. Interest Paid
  6. Bad Debts
Give the rectifying entries of the following:
  1. Sales of ₹ 20,000 to Manoj were recorded as ₹ 2,000 in the Sales Book.
  2. An amount of ₹ 25,000 spent for the extension of machinery has been debited to the Wages Account.
  3. Discount received from Ram & Co. ₹ 350, has not been entered in the discount column of the Cash Book.
  4. Goods of ₹ 3,000 sold to Mahesh were recorded in the Purchases Book.
Journalise the following transactions:
2019
 
March 5
Sold goods to Shruti for ₹ 80,000 at 15% trade discount and 4% cash discount. Received 75% amount immediately through a cheque.
March 10
Purchased goods from Richa for ₹ 60,000 at 10% trade discount and 5% cash discount. 60% amount paid by cheque immediately.
Jouranlise the following transactions in the books of Harpreet Bros:
  1. ₹ 1,000 due from Rohit are now bad debts.
  2. Goods worth ₹ 2,000 were used by the proprietor.
  3. Charge depreciation @ 10% p.a for two month on machine costing ₹ 30,000.
  4. Provide interest on capital of ₹ 1,50,000 at 6% p.a. for 9 months.
  5. Rahul become insolvent, who owed is ₹ 2,000 a final dividend of 60 paise in a rupee is received from his estate.
Briefly explain your understanding of IFRS.
On 31st December, 2014 the Cash Book of Gopal showed debit balance of ₹ 12,000. On comparing the Cash Book with the Pass Book, the following discrepancies were noted:-
  1. Cheques were issued for ₹ 15,000, but of them cheques for ₹ 7,700 have not yet been presented.
  2. Cheques for ₹ 8,000 were deposited in bank but of these cheques for ₹ 2,000 were not recorded in the Cash Book.
  3. Cheques deposited in bank but not credited ₹ 3,800.
  4. A cheque for ₹ 350 was paid into bank but bank credited the amount with ₹ 530 by mistake.
  5. Bank received interest on debentures on behalf of Gopal amounting to ₹ 300.
  6. It was also found that the total of one page on the payment side of the Cash Book was ₹ 4,520 but it was written on the next page as ₹ 5,420.
Prepare a Bank Reconciliation Statement.