Books of Original Entry – Cash Book — Account STD 11 Commerce — Question

Distinguish Trade Discount from Cash Discount. (Two points)

Rectify the following errors:

1. Credit sales to Mridula ₹ 5,000 were not recorded.
2. Credit purchases from Nayna ₹ 8,000 were not recorded.
3. Goods returned to Priya ₹ 12,000 were not recorded.
4. Goods returned from Rashi ₹ 10,000 were not recorded.

Rim Zim Ltd. maintains a current account with the State Bank of India. On 31st March, 2017, the bank column of its cash book showed a debit balance of ₹ 1,54,300. However, the bank statement showed a different balance as on that date. The following were the reasons for the difference:

(i)	Cheques deposited, but not yet credited by the bank	75,450
(ii)	Cheques issued, but not yet presented for payment	80,760
(iii)	Bank charges not yet recorded in the cash book	1,135
(iv)	Cheques received by the bank directly from trade debtors	1,35,200
(v)	Insurance premium paid by the bank as per standing instructions, but not yet recorded in the cash book	15,400
(vi)	Dividend collected by the bank, but not yet recorded in the cash book	1,000

Find out the balance as per the bank statement as on 31st March, 2017.

Distinguish between Trade Discount and Cash Discount.

On checking the Bank Pass Book it was found that it showed an overdraft of ₹ 5,220 as on 31.12.2014, while as per Ledger it was different to Bank Debit. The following differences were noted:

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

Give the Journal entries to rectify the following errors:

1. Purchases Book was overcast by ₹ 1,000.
2. Installation charges on new machinery purchased ₹ 500 were debited to Sundry Expenses Account as ₹ 50.
3. Radhey Shyam returned goods worth ₹ 500 which was entered in the Purchases Return Book.
4. Goods taken by the proprietor for ₹ 5,000 have not been entered in the books at all.

Prepare Accounting Equation from the following:

1. Started business with Cash ₹ 2,00,000.
2. Purchased goods for Cash ₹ 60,000 and on Credit ₹ 1,50,000.
3. Sold goods for Cash costing ₹ 40,000 at a profit of 20% and on Credit costing ₹ 72,000 at a profit of 25%.
4. Paid for Rent ₹ 5,000.

What are Accounting Vouchers?

Enter the following transactions in a simple cash book for December 2016:

		₹
01	Cash in hand	12,000
05	Cash received from Bhanu	4,000
07	Rent Paid	2,000
10	Purchased goods Murari for cash	6,000
15	Sold goods for cash	9,000
18	Purchase stationery	300
22	Cash paid to Rahul on account	2,000
28	Paid salary	1,000
30	Paid rent	500

On 1st January, 2019, A sold goods to B for ₹ 5,000 plus IGST @ 18%. A received ₹ 900 by cheque from B and drew on him a bill for the balance amount payable 3 months after date. The bill was duly accepted by B. A retained the bill till due date. On due date, the bill was paid.
Pass Journal entries in the books of A and B. Also, show necessary accounts in the books of both the parties.