Trial Balance and Errors — Account STD 11 Commerce — Question

Feb 1, 2017	Purchased from M/s Brown & Co. on credit.
	5 gross pencils @ ₹ 100 per gross.
	1 gross registers @ ₹ 200 per dozen.
	Less: 10% trade discount.
Feb 2, 2017	Purchased for cash from stationery Mart.
	10 gross exercise books @ ₹ 60 per dozen.
Feb 6, 2017	Purchased from The Paper Co.
	5 reams of white paper @ ₹ 100 per ream
	10 reams of brown paper @ ₹ 65 per ream
	Less: trade discount @ 10%

Prepare a Bank Reconciliation Statement from the following particulars:-
On 31st December 2014, I had an overdraft of ₹ 750 as shown by my Pass Book. I had issued cheques amounting to ₹ 250 of which ₹ 200 worth only seem to have been presented for payment. Cheques amounting to ₹ 100 had been paid in by me on 30th December, but of these only ₹ 75 were credited in the Pass Book. I also find that a cheque for ₹ 10 which I had debited to bank account in my books has been omitted to be banked. There is a debit of ₹ 25 in my Pass Book for interest.
An entry of ₹ 30 of a payment by a customer direct into the bank appears in the Pass Book. My Pass Book also shows a credit of ₹ 60 to my account for interest on investments directly collected by my bankers.

Give four advantages of Straight Line Method of providing depreciation.

From the following particulars prepare a bank reconciliation statement of Govil as on 31st December, 2014.
Balance as per Pass Book on 31st December 2014 is ₹ 8,500. Cheques for ₹ 5,100 were issued during the month of December but of these cheques for ₹ 1,200 were presented in the month of January 2015 and one cheque for ₹ 200 was not presented for payment. Cheques and cash amounting to ₹ 4,800 were deposited in bank during December but credit was given for ₹ 3,800 only. A customer has deposited ₹ 800 into bank directly. The bank credited the merchant for ₹ 200 as interest and has debited him for ₹ 30 as bank charges for which there are no corresponding entries in Cash Book.

State the rules of debiting and crediting of accounts.

Prepare the Bank Reconciliation Statement from the following particulars for the period ending 31st December, 2012.

1. Overdraft as per Pass Book on 31-12-2012 ₹ 7,600.
2. Cheques deposited but not collected by the bank ₹ 8,560.
3. Incidental charges not recorded in Cash Book ₹ 80.
4. Cheques were issued for ₹ 7,800 but only ₹ 4,400 were presented for payment.
5. Insurance premium paid by bank not recorded in the Cash Book ₹ 4,200.
6. On 31st December, 2012 cash was deposited in bank ₹ 385 but the cashier debited the bank column with ₹ 485 by mistake.

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

My bank Pass Book showed an overdraft of ₹ 6,500 on 31st March, 2017. This does not agree with the Cash Book balance. From the following particulars ascertain the Cash Book balance:- Cheques amounting to ₹ 15,000 were paid into bank in March, out of which, it appears, only cheques amounting to ₹ 4,500 were credited by bank. Cheques issued during March amounted in all to ₹ 11,000. Out of these cheques for ₹ 3,000 were unpaid on 31st March, 2017. The Pass Book stands debited with ₹ 150 for interest and with ₹ 30 for bank charges. The bank had paid the annual subscription of ₹ 100 to my club according to my instructions. The entries for interest, bank charges and subscription have not yet been made in Cash Book.

Write up Return Outward Book of Malthotra & Co., Bhiwani (Haryana) from the following transactions assuming CGST @ 6% and SGST @ 6%.

2017
August 4	Returned to Saraswati House, Bhiwani 25 Chairs @ ₹ 1,800 per Chair, being not of specified quality.
	Trade Discount 10%
August 12	Sent back one Dining Table to Navneet Enterprise, Karnal (Haryana) for not being polished @ ₹ 10,000 and 20 Chairs @ ₹ 2,000 each.
August 20	Returned to Yadav & Co., Patiala (Punjab), being not according to sample
	20 Chairs @ ₹ 1,500 each.
	2 Dressing Tables @ ₹ 7,500 each.
August 28	Allowance claimed from Navneet Enterprise, Ludhiana (Punjab) on account of mistake in the invoice ₹ 5,000.

The cash book shows a bank balance of ₹ 7,800 . On comparing the cash book with the passbook the following discrepancies were noted:
i. Cheque deposited in bank but not credited ₹ 3,000
ii. Cheque issued but not yet present for payment ₹ 1,500
iii. An insurance premium paid by the bank ₹ 2,000
iv. Bank interest credit by the bank ₹ 400
v. Bank charges ₹ 100
vi. Directly deposited by a customer ₹ 4,000