Question
What is a Bank Reconciliation Statement? Explain the purpose of preparing such a statement.
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Answer
Bank Reconciliation Statement is a statement prepared by the account holder on a particular date to reconcile the bank balance as per Cash Book with the balance as per Bank Statement or Bank Pass Book showing entries because of which differences between the two balances exist.
Bank reconciliation statement is prepared to find out the reasons for difference in Bank balance as per Cash Book and Balance as per Pass Book.
Bank reconciliation statement is prepared to find out the reasons for difference in Bank balance as per Cash Book and Balance as per Pass Book.
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Production at a factory had to stop for a week due to a labour strike. The owner estimated the loss of production and the likely loss of profit arising out of the situation. He directed the accountant to record the loss in the books of account. Is the owner correct in recording the likely loss? Give reasons.
Rectify the following errors:
- Purchases Book has been undercast by ₹ 1,000.
- Credit sale to Anu Prakash ₹ 7,000 was recorded in Purchases Book.
- Credit sale to Rahul ₹ 7,000 was recorded as ₹ 700.
What are the parties to a promissory note?
Prepare Bank Reconciliation Statement from the following:
|
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₹
|
|
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(i)
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Debit balance as per the Cash Book.
|
15,000
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|
(ii)
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Cheques deposited but not cleared.
|
1,000
|
|
(iii)
|
Cheques issued but not presented.
|
1,500
|
|
(iv)
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Bank interest.
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200
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Pass the Opening Entry from the following Balance Sheet as at 31st March, 2019 of Vikas:
Distinguish between revenue expenditure and capital expenditure.
Which financial statements are prepared under Ind-AS?
Why should a business follow the consistency Concept?
Open 'T' shape account of our Debtor 'Ram' and write the following transactions on proper side:
| (₹) | ||
| i. | Sold goods to Ram on Credit | 20,000 |
| ii. | Received from Ram | 15,000 |
| iii. | Ram returned goods to us | 3,000 |
| iv. | Again sold goods to Ram on Credit | 10,000 |
| v. | Ram returned goods to us | 1,000 |
Find out the due dates of the bills in the following cases:
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Date of the Bills
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Period
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I.
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29th May, 2017 | 4 months |
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II.
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31st March, 2017 | 1 month |
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III.
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21st July, 2017 | 60 days |
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IV.
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14th May, 2017 | 90 days |
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V.
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28th January, 2016 | 1 month |
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VI.
|
31st January, 2016 | 1 month |
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Emergency holiday 22nd September
|