4 Marks Question

Question 14 Marks

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.

Answer

Particulars	Plus Items ( ₹ )	Minus Items ( ₹ )
Balance as per Bank Statement (Cr.)	33,570
Cheques and drafts deposited but not yet collected and credited	7,900
Cheque deposited returned unpaid (Dishonoued)		2,000
Cheques issued but not yet presented for payment		6,500
Cheque paid by the bank but not entered in the Cash Book	10,000
Cheque discounted dishonoured	5,000
Bank Commission not recorded in Cash Book	160
Interest credited by the bank but not recorded in Cash Book		100
Wrong Debit by Bank	5,000
Balance as per Cash Book (Dr.) (₹ 61,600 - ₹ 8,600)		53,000
	61,600	61,600

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Question 24 Marks

Malhotra and Sons find that the bank balance shown by their Cash Book on December 31, 2023 is ₹ 40,500 (credit) but the Pass Book shows a difference due to the following reasons:
i. A cheque for ₹ 5,000 drawn in favour of Manoj has not yet been presented for payment.
ii. A post-dated cheque for ₹ 900 has been debited in the bank column of the Cash Book but it could not have been presented in any case.
iii. Cheques totaling ₹ 10,200 deposited with the Bank have not yet been collected and an another cheque for ₹ 4,000 deposited in the account has been dishonoured.
iv. A bill payable for ₹ 10,000 was retired by the Bank under a rebate of ₹ 150 but the full amount of the bill was credited in the bank column of the Cash Book.
Prepare a Bank Reconciliation Statement and find out the balance as per Pass Book.

Answer

BANK RECONCILIATION STATEMENT as on December 31, 2023
Particulars	(+)	(-)
Unfavourable balance as per Cash Book (Cr.)		40,500
Cheques issued not yet presented	5,000
Post dated Cheque received but it could not have been presented in any case		900
Cheques not yet credited		10,200
Cheques dishonoured	4,000
Bill retiring Under the Rebate.	150
Unfavourable balance as per Pass Book (Dr.) (Balancing figure)	50,450
	55,600	55,600

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Question 34 Marks

Enter the following transactions in a single column Cash Book:

2023		₹
Mar-01	Commenced business with Cash	20,000
Mar-02	Bought goods for Cash	5,000
Mar-05	Sold goods for Cash	4,000
Mar-10	Goods purchased from Rajesh on Credit	10,000
Mar-13	Paid to Rajesh	7,000
Mar-15	Cash Sales	8,000
Mar-18	Purchased furniture for Cash	6,000
Mar-20	Paid Wages	380
Mar-24	Paid Rent	400
Mar-26	Received Commission	600
Mar-28	Withdrew for personal expenses	1,000
Mar-31	Paid Salary	900

Answer

In the books of CASH BOOK
Dr.					Cr.
Date	Particulars (Receipts)	V. No.	L.F	Amount	Date	Particulars (Payments)	V. No.	L.F	Amount
2023				₹	2023				₹
March 1	To Capital A/c			20,000	March 2	By Purchases A/c			5,000
5	To Sales A/c			4,000	13	By Rajesh			7,000
15	To Sales A/c			8,000	18	By Furniture A/c			6,000
26	To Commission A/c				20	By Wages A/c			380
					24	By Rent A/c			400
					28	By Drawings A/c			1,000
					31	By Salary A/c			900
	Total Receipts			32,600		Total Payments			20,680
					31	By Balance c/d			11,920
				32,600					32,600
April 1	To Balance b/d			11,920

Hint: Cashbook never records credit transactions only cash transactions are recorded in cash book. Hence no record will be made in the cash book of the credit purchase of goods from Rajesh on March $10^{\text {th }}$.

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Question 44 Marks

From the following balances, taken from the books of $M / s$ Dhruv Rathee \& Sons as at 31st March 2023, prepare a Trial Balance in proper form:

Name of Accounts	(₹)	Name of Accounts	(₹)
Cash in Hand	4,500	Machinery	24,000
Bank Overdraft	8,000	Land & Buildings	50,000
Opening Stock	20,000	Debtors	18,400
Purchases	80,000	Creditors	8,500
Purchases Returns	2,000	Bills Receivable	2,850
Sales	1,30,000	Bills Payable	1,650
Sales Returns	5,000	Capital	60,000
Travelling Expenses	1,800	Drawings	6,000
Discount Allowed	600	Rent	3,700
Discount Received	1,500	Salaries	3,600
		Loan (Cr.)	10,000
		Interest on Loan	1,200

Answer

Books of M/s Dhruv Rathee & Sons Trial Balance as on March 31, 2023
Name of Accounts	L.F	Debit Balance (₹)	Credit Balance (₹)
Cash in Hand		4,500
Overdraft			8,000
Opening Stock		20,000
Purchases		80,000
Purchases Return			2,000
Sales			1,30,000
Sales Return		5,000
Travelling Expenses		1,800
Discount Allowed		600
Discount Received			1,500
Machinery		24,000
Land & Building		50,000
Debtors		18,400
Creditors			8,500
Bills Receivable		2,850
Bills Payable			1,650
Capital			60,000
Drawings		6,000
Rent		3,700
Salary		3,600
Loan			10,000
Interest on Loan		1,200
Total		2,21,650	2,21,650

Since trial balance debit and credit total match then all statements prepared are accurate.

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