Accounting for Goods and Service Tax (GST) — Account STD 11 Commerce — Question

From the following items prepare a Bank Reconciliation Statement on 31st May 2015:

1. Bank balance as per Cash Book on 31st May 2015 ₹ 17,600.
2. Cash and cheques totalling ₹ 36,000 were sent to bank during May but one cheque of ₹ 11,800 was shown in the Pass Book on 2nd June.
3. As per instructions bankers have directly collected ₹ 4,100 from a customer but there is no mention of it in the Cash Book.
4. Three cheques for ₹ 10,000, ₹ 12,000 and ₹ 4,800 respectively were drawn on 27th May but the cheque for ₹ 4,800 was encashed on 1st June.
5. On 31st May bankers had debited ₹ 45 as bank charges but had intimated it on 3rd June.
6. ₹ 16,200 were withdrawn from bank on 25th May but there is no entry for it in the Cash Book.

Raghav & Co. have two bank accounts, Account No. I and Account No. II. From the following particulars relating to Account No. I, find out the balance on that account on December 31, 2016 according to the Cash Book of the firm.

1. Cheques paid into bank prior to December 31, 2016, but not credited until after that date for ₹ 10,000.
2. Transfer of funds from Account No. II to Account No. I recorded by the bank on December 31, 2016 but entered in the Cash Book after that date for ₹ 8,000.
3. Cheques issued prior to December, 31 2016 but not presented until after that date for ₹ 7,429.
4. Bank charges debited by bank not entered in the Cash Book for ₹ 200.
5. Interest debited by the bank not entered in the Cash Book ₹ 580.
6. Overdraft as per Pass Book ₹ 18,990.

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.

Record the following transactions in the Sales Book of Ganesh & Co. of Jaipur (Rajasthan), who deal in Furniture. Assume CGST @ 6% and SGST @ 6%.

2017
June 4	Sold to Gupta Furniture House, Agra (U.P.)
	120 Chairs @ ₹ 2,500 per Chair
	25 Tables @ ₹ 8,000 per Table
	Less: 5%
June 8	Sold to Raja Furniture House, Ahmedabad (Gujarat)
	8 Almirahs @ ₹ 15,000 each
	9 Steel Cabinets @ ₹ 20,000 each
	Less: Trade discount of 10%
June 12	Sold old Computer for ₹ 1,500 to Mohan & Co. on Credit.
June 20	Sold 4 Sofa sets @ ₹ 25,000 each to Varun & Co. for cash
June 25	Sold to New Furniture House, Jaipur
	5 Sofa sets @ ₹ 20,000 each
	10 Tables @ ₹ 8,000 each
June 28	Purchased from Ram Lal & Co. Jaipur on credit
	50 chairs @ ₹ 2,000 each

Journalise the following transactions:

		₹
(a)	Shyam became insolvent. A first and final compensation of 75 paise in a rupee was received from his official receiver. He owed a debt of	50,000
(b)	Received cash for a bad debt written off last year	25,000
(c)	Rent due to landlord	40,000
(d)	Depreciation on office furniture	5,000
(e)	Salaries due to staff	50,000
(f)	Paid income tax	1,50,000
(g)	Received commission ₹ 25,000, half of which is in advance.

Give one difference between General Reserve and Specific Reserve.

Why receipts are classified into capital and revenue?

On 1st January, 2019, Ajay sold goods to Bhushan for ₹ 50,000. Ajay draws a bill of exchange for two months for the amount due which Bhushan accepts and returns it to Ajay. Bhushan met the bill on the due date. Pass Journal entries in the books of Ajay and Bhushan.

Explain any two Source Documents.

What will be the effect of the following on the Accounting Equation?

1. Harish started business with cash ₹ 18,000
2. Purchased goods for Cash ₹ 5,000 and on credit ₹ 2,000
3. Sold goods for cash ₹ 4,000 (costing ₹ 2,400)
4. Rent paid ₹ 1,000 and rent outstanding ₹ 200