when an extract of cash book )bank column( and pass book is given. I llustration 5: Given below are the entries in the bank column of the cash book and the pass book. Prepare a Bank Reconciliation Statement of Mr.Sekar as on August 31, 2003. Rs.30,000 were distributed to increase the publicity of the cinema house. Less : Discount @10% 2,000 20 Sold goods to Tmt.Chitra 1,26,000
Stages of Rectification 1.1 Need and importance of Accounting When a person starts a business, whether large or small, his main aim is to earn profit. He receives money from certain sources like sale of goods, interest on bank deposits etc. He has to spend money on certain items like purchase of goods, salary, rent, etc. These activities take place during the normal course of his business. He would naturally be anxious at the year end, to know the progress of his business. Business transactions are numerous, that it is not possible to recall his memory as to how the money had been earned and spent. At the same time, if he had noted down his incomes and expenditures, he can readily get the required information. Hence, the details of the business transactions have to be recorded in a clear and systematic manner to get answers easily and accurately for the following questions at any time he likes. 9.5 Procedure for Preparing Bank reconciliation Statement S. transactionsno particulars 15 Sold old typewriter for Rs.1,000 to Madan on credit 20. sold to Gopinath on credit.
Accountants In Sherrard’s Green Date Particulars L.FDebit Credit Rs. P. Rs. P. 2004 Cash A/c Dr. 12 25,000 Jan 3 To Balan’s A/c 81 25,000 – (Cash received from Canara Bank, Trichy. Plant and Machinery xxx Accountants In Torton iv. The banker has paid the bills payable of the customer as per standing instructions . rs. rs. 36,320 Purchases
Solution : Journal 5.3.2 Posting of Compound Journal entries Compound or Combined Journal Entry is one where more than one transactions are recorded by passing only one journal entry instead of passing several journal entries. Since every debit must have the corresponding equal amount of credit, special care must be taken in posting the compound journal entry, where there may be only one debit aspect but many corresponding credit aspects of equal value or vise versa. The posting of such transactions is done in the same way as already explained. iii. receipt Number )r.N(: This refers to the serial number of the cash receipt. 1. This is an error of casting and it affect sales account only. The trial balance will not tally. Revenue receipt is the receipt of income which is earned during the normal course of business. It is recurring in nature. Characteristics 2. Define ledger.
know the Meaning and Types of Accounts. Mar 20 To Cash A/c 7,000 11.3 deferred revenue expenditure A heavy revenue expenditure, the benefit of which may be extended over a number of years, and not for the current year alone is called deferred revenue expenditure. For example, a new firm may advertise very heavily in the beginning to capture a position in the market. The benefit of this advertisement campaign will last for quite a few years. It will be better to write off the expenditure in three or four years and not only in the first year. Illustration 5 Prepare Trading and Profit Loss Account for the year ending 31st March 2002 from the books of Mr. Siva Subramanian. Stock (31.3.2001) Purchases
Accountants In Elmley Lovett Accountants In Ankerdine Hill Rectify the following errors: Credit Purchases return A/c (Answer : Cash balance Rs.42,000; bank balance (cr) rs.300) 10. Prepare a cash book with cash, bank and discount columns from the transactions given below: 26 To Somu Accountants In Woodmancote 2. Parties 7. What is a credit note? closing stock on 31st
4.1.1 Cash Memo When a trader sells goods for cash, he gives a cash memo and when he purchases goods for cash, he receives a cash memo. Details regarding the items, quantity, rate and the price are mentioned in the cash memo. April 1To Balance c) liability 40,000 d) Interest on Investments collected by the Bank but not entered in the Cash Book amounted to Rs.275. 15. Interest allowed by bank
Accountants In Ravenhills Green Furniture 3,700 Plant 10,000 Trial balance is a statement which shows debit balances and credit balances of all accounts in the ledger. Since, every debit should have a corresponding credit as per the rules of double entry system, the total of the debit balances and credit balances should tally (agree). In case, there is a
Accountants In Pie Corner 10 Tables @ Rs.350 3,500 12,000 Cr. Rs. Particulars Rs. Rs. 60,000 By Sales 10,40,000 Date ParticularsNote L.F. Details Total Remarks No. Rs. Rs. x x x ii. Such a system does not facilitate the installation of an internal check system since the journal can be handled by only one person. iii. The journal becomes
Accountants In Gorst Hill Accountants In Sherrard’s Green Date Particulars L.FDebit Credit Rs. P. Rs. P. 2004 Cash A/c Dr. 12 25,000 Jan 3 To Balan’s A/c 81 25,000 – (Cash received from Canara Bank, Trichy. Plant and Machinery xxx Accountants In Torton iv. The banker has paid the bills payable of the customer as per standing instructions .
Accountants In Rye Street Accountants In Elmley Lovett Accountants In Ankerdine Hill Rectify the following errors: credit purchases return A/c (Answer : Cash balance Rs.42,000; bank balance (cr) Rs.300) 10. Prepare a cash book with cash, bank and discount columns from the transactions given below: 26 To Somu Accountants In Woodmancote 2. Parties 7. What is a credit note?
in the debitbook Less Add column in the>Pass Amar Tailors Account Cr. Amount Date Particulars J.FAmountJ.FRs. Rs. 2003 ii. Name of Account column contains the list of all ledger accounts. iii. Ledger folio of the respective account is entered in the next column.