Provisions and Reserves — Account STD 11 Commerce — Question

“Revenue earned and cost of earning that revenue should be properly identified for a period." Explain this statement.

Write a note on the following:

1. Dishonour of Bill.
2. Endorsement of Bill.

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.

Prepare accounting equation on the basis of the following:

1. Harsha started business with cash ₹ 2,00,000
2. Purchased goods from Naman for cash ₹ 40,000
3. Sold goods to Bhanu costing ₹ 10,000/- ₹ 12,000
4. Bought furniture on credit ₹ 7,000

Differentiate between Provision and Reserve on the basis of:

1. Appropriation or Charge.
2. Financial Position.
3. Distribution.

What is Money Measurement Concept? Which one factor can make it difficult to compare the monetary value of one year with the monetary values of another years?

Give four differences between a Bill of Exchange and a Promissory Note.

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.

Pass Journal entries rectifying the following errors:

1. A cheque for ₹ 10,000 was received from Ranjan on which ₹ 200 Cash Discount was allowed. The cheque was not honoured on due date and the amount of discount was credited to Discount Received Account.
2. ₹ 2,000 paid as wages for machinery installation was debited to Wages Account.
3. ₹ 5,000 received from Rakesh were credited to his Personal Account. The amount had been written off as bad debts earlier.
4. Repair bill of machinery was recorded as ₹ 100 against the bill amount of ₹ 1,000.

Record the following transactions during the week ending Dec.30, 2014 with a weekly imprest ₹ 500.

	2017 January	₹
24	Stationery	100
25	Bus fare	12
25	Cartage	40
26	Taxi fare	80
27	Wages to casual labour	90
29	Postage	80