Recording of Transactions - 1 — Account STD 11 Commerce — Question

Explain determinants of the amount of depreciation.

On 31st December, 2014 the Cash Book of Basu showed an overdraft of ₹ 18,000 with the Bank of India. The balance did not agree with balance as shown by the Bank Pass Book and you find that Basu had paid into the Bank on 26th December four cheques for ₹ 10,000; ₹ 12,000; ₹ 6,000 and ₹ 8,000. Of these the cheque for ₹ 6,000 was credited by the bank in January, 2015. Basu had issued on 24th December three cheques for ₹ 15,000, ₹ 12,000, and ₹ 7,000. The first two cheques were presented to the bank for payment in December and the third in January, 2015.
You also find that on 31st December, 2014, the bank had debited Basu's Account for ₹ 500 for interest and ₹ 20 for charges but Basu has not recorded these amounts in his books.
You are required to prepare a Bank Reconciliation Statement as on 31st December, 2014 and ascertain the balance as per bank Pass Book.

Distinguish between an accomodation bill and a trade bill.

The Cash book of Sh. Shokeen showed a balance of ₹ 20,000 on 31st December, 2023 at the bank. The figure did not agree with the bank Pass Book. A comparison of the two revealed the following :
i. The bank has debited Sh. Shokeen with ₹ 6,000, the annual premium on his life policy according to his standing instructions and with ₹ 150 as bank charges.
ii. The bank has credited Sh. Shokeen by ₹ 15,000, the proceeds of a bill.
iii. Sh. Shokeen sent for collection cheques amounting ₹ 60,000 out of which cheques for ₹ 48,000 have been credited by bank till 31st December.
iv. The cash collection on 31st December, 2023 totalling ₹ 25,000 was entered in the Cash Book in the bank column on the same day but it was banked on the 2nd January, 2024.
v. Sh. Shokeen issued cheques totalling ₹ 1,00,000 of which those of ₹ 36,000 have not been presented by 31st December, 2023.
Show the corrections to be made in the Cash Book so as to ascertain the balance to be shown in the Balance Sheet and then prepare the Bank Reconciliation Statement.

Rectify the following errors:

1. Credit sales to Mridula ₹ 5,000 were recorded as ₹ 5,400.
2. Credit purchases from Nayna ₹ 8,000 were recorded as ₹ 8,800.
3. Goods returned to Priya ₹ 12,000 were recorded as ₹ 12,200.
4. Goods returned from Rashi ₹ 10,000 were recorded as ₹ 11,000.

Distinguish between Sales Book and Sales Account. Difference between Sales Book and Sales Account Basis Sales Book.

Prepare a Sales Book with atleast two items in it and show its posting.

A Company purchased a second-hand machine on 1st April, 2016, for ₹ 30,000 and immediately spent ₹ 4,000 on its repair and ₹ 1,000 on its installation. On Oct. 1, 2018, the machine was sold for ₹ 25,000. Prepare Machine Account after charging depreciation @ 10% p.a. by diminishing balance method, assuming that the books are closed on 31st March every year. IGST was charged @12% on purchase and sale of machine.

Name the qualitative characteristics of accounting information. Explain any two of them.

Prepare a debit voucher for furniture purchased for ₹ 60,000 from Globe Furniture Mart on 02-01-2017.