ProblemAn enterprise company has an Rs.85700/- as passbook balance and Rs.95800/- as cash book balance as on 31st march 2004.The transactions are as follows −Cheque issued (personal account) of enterprise debited to firm’s account of Rs.5000/-Cheque deposited and yet to collect by bank of Rs.2500/-Cheque deposited and collected from bank ... Read More

Following are the steps involved in preparing bank reconciliation statement (BRS) −Step 1 − Compare the opening balances of cash books and bank statements for any difference. The differences may arise due to uncredited cheques from before. Identify them and tick on bank statements. Now, opening balances are agreed.Step 2 ... Read More

Following items will appear in cash book but not in bank pass book −Cheques which are issued, but not debited in the bank.In cash books, entries for cheques issued are recorded immediately (reduces bank balances in books). The reason for not appearing in the passbook may be the cheque, which ... Read More

On March 1st − Mr. T opened a current account with ABC Bank with balance of Rs.100000/-On March 4th − T paid to Mr. N of Rs.5000/- by cheque.On March 9th − T received an amount of Rs. 10000/- from Mr. U by cheque and deposited it in the bank.On ... Read More

The major differences between a return inward and a return outward are as follows −Return inwardReturn inward is defined as the seller returning the goods back due to various reasons (defective, incorrect goods etc.)Return inward transactions starts, when the seller receives sold goods back.It occurs next to return outwards.The journal ... Read More

The major differences between a purchase book and a purchase account are as follows −Purchase bookPurchase book is the book, which records all the credit transactions related to the goods purchased.Primary book of accounts.The purpose of a purchase book is to maintain all the credit transactions related to the goods ... Read More

Refer the transactions given below and record them in appropriate format in the respective journals.On May 3 − Goods worth of Rs.5700/- purchased from Ram & co.On May 6 − Sold merchandise worth Rs. 7300/- to N&S.On May 14 − Purchase merchandise worth of Rs.2800/- from B&R.On May 15 − Sales ... Read More

Refer to the transactions given below and prepare a return outward book.On June 2 − Received note worth of Rs.800/- from V.On June 9 − Received note worth of Rs. 350/- from S.On June 15 − Received note worth of Rs. 600/- from M.On June 20 − Received note worth ... Read More

Let us consider two examples to learn how to prepare a return inwards book.Example 1Refer the transactions given below and prepare return inwards book.On December 4 − X return goods worth of Rs.1000/- on which trader allowed a discount of 5% (credit note # 233).On December 10 − Y allowed a ... Read More

The transactions made by a FVY & co are as follows −On 3rd March − Goods sold to Ramkhi for 850/-On 12th march − 15 units sold to Yusuf for 50/- per unit.On 16th march − 40 units are sold to Vinod for 1600/- (includes 8% cash discount)On 20th march − ... Read More