Q. State whether the following statements are TRUE or FALSE :1. Total of payments side can be greater than total of receipts side in case of bank column.2. Purchase of asset or stationery on credit is recorded in purchase book.3. When goods are returned by buyer to seller, buyer sends a debit note.4. Cheque received and deposited into bank on the same day is a contra entry.5. Simple petty cash book is not very popular.6. Interest on overdraft charged by bank is recorded in the cash column.7. It is not necessary to record dishonor of cheques in the cash book.8. Cheque book facility is available for fixed deposit account.9. Businessman generally operates savings bank account.10. A cash book is both a journal as well as ledger.11. Cash book is a book of original entry.12. Cash discount allowed is recorded on the debit side of cash book13. Credit transactions are never recorded in cash book.14. Endorsed cheques are always recorded on the payment side in the bank column.15. A person who endorses the cheque is known as endorser.
Q. The Bank Column of Mukesh's Cash Book as on 31st March, 2018 showed an overdraft of Rs. 1,80,000. His Bank Statement Showed an overdraft of Rs. 1,13,900. Prepare Bank Reconciliation Statement taking the following into account:(i) Cheque deposited into bank but entry is not passed in the Cash Book. Rs. 3000.(ii) Cheque received and entered into the Cash Book but was not sent to bank. Rs. 10,000.(iii) Credit side of the Bank column casted short by Rs. 1,000(iv) Insurance premium paid directly by the bank under standing instructions was not recorded in the Cash Book. Rs. 5,000(v) Bank charges entered in the Cash book twice. Rs. 100(vi) Cheque 'received' returned on technical grounds but entry was not passed. Rs. 4,000(vii) Cheque 'issued' returned on technical grounds but entry was not passed. Rs. 3,000(viii) Bill discounted dishonoured. Rs. 40,000(ix) Bills Recievable directly collected by the bank. Rs. 20,000An amount of Rs. 1,00,000 being collection of Mahesh's cheque was wrongly credited to the account of Mukesh by the bank in his bank statement.
Q. Following are the entries recorded in the Cash Book (Book Column) of Deepali Traders for the month ended 31st March, 2011.Cash Book (Bank Column Only)Dr. Cr.DateReceiptsRsDatePaymentsRs2011 Mar. 15212231To Cash A/cTo Razak’s A/cTo Kavita’s A/cTo Balance c/d36,00024,00010,0007,6402011 Mar.1461520By Balance b/dBy Jonny’s A/cBy Roma’s A/cBy Ashish ‘s A/cBy Patil’s A/c40,0002,00040024035,00077,64077,640On 31st March 2011, Deepali Trader’s received the Bank Statement, on comparing it with the Cash Book following information was available.(i) Cheque of Rs 10,000 deposited into the Bank not Credited by Bank.(ii) Bank charges debited by Bank not entered in the Cash Book Rs 340.(iii) Interest on Ovendraft debited Rs 1,000 by Bank but not recorded in the Cash Book(iv) Bank transferred and credited Rs 200 in the Pass Book, not recorded in the Cash Book(v) Cheques issued but not presented to the Bank Rs 37,400(vi) Interest on Securities Rs 1,080 and Dividend on shares Rs 1,000 collected and Credited by Bank, not entered in the Cash Book.
Q. On 31st March, 2015 the bank column of the Cash Book of Mr. Rajesh showed a debit balance of ₹ 5,200. On examining the Pass Book you find that:(i) Cheques of ₹ 20,000 were sent to bank for collection; Out of these cheques of ₹ 4,000 and of ₹ 5,000 were credited respectively on 5th April and 6th April respectively and the remaining cheques were credited before 31st March.(ii) A cheque for ₹ 7,500 received from a customer although entered in the bank column of the Cash Book, was omitted to be paid into the bank.(iii) Cheques drawn for ₹ 25,000 were not presented for payment.(iv) Credit side of the bank column of the Cash Book was overcast by ₹ 100.(v) A B/P for ₹3,600 has been paid by the bank, but not yet recorded in the Cash Book.(vi) No entry has been made in the Cash Book to record the dishonour on 28th March 2015, of a cheque for ₹ 5,400 received from a customer.(vii) A cheque for ₹ 2,500 issued to a creditor was wrongly entered in the cash column for the Cash Book.(viii) In the Cash Book, bank charges of ₹ 200 were entered twice while another bank charge of ₹ 500 was not recorded at all.You are required to show the necessary corrections in the Cash Book and to prepare a statement reconciling the amended cash balance with the shown in bank Pass Book as on 31st March 2015.
Q. On 31st March, 2019 the bank column of the Cash Book of Mr. Rajesh showed a debit balance of ₹ 5,200. On examining the Pass Book you find that:(i) Cheques of ₹ 20,000 were sent to bank for collection; Out of these cheques of ₹ 4,000 and of ₹ 5,000 were credited respectively on 5th April and 6th April respectively and the remaining cheques were credited before 31st March.(ii) A cheque for ₹ 7,500 received from a customer although entered in the bank column of the Cash Book, was omitted to be paid into the bank.(iii) Cheques drawn for ₹ 25,000 were not presented for payment.(iv) Credit side of the bank column of the Cash Book was overcast by ₹ 100.(v) A B/P for ₹ 3,600 has been paid by the bank, but not yet recorded in the Cash Book.(vi) No entry has been made in the Cash Book to record the dishonour on 28th March 2019, of a cheque for ₹ 5,400 received from a customer.(vii) A cheque for ₹ 2,500 issued to a creditor was wrongly entered in the cash column of the Cash Book.(viii) In the Cash Book, bank charges of ₹ 200 were entered twice while another bank charge of ₹ 500 was not recorded at all.You are required to show the necessary corrections in the Cash Book and to prepare a statement reconciling the amended cash balance with that shown in bank Pass Book.
View More
