Question

Following are the ratios relating to the trading activities of an organization -
Debtors velocity 3 Months. Stock velocity 6 Months. Creditors Velocity 2 Months. Gross Profit
(on cost) Ratio 20% and Amount of Gross profit Rs. 15.00.000 at the of the year Stock at the end
of the year was Rs. 40.000 more than what it was beginning of the year. Bills payable and
Receivable were Rs.73334 and Rs. 120,000 respectively. You are required to ascertain the figures
of i) Sales i) Debtors ini) Sundry Creditors iv) Stock v) Current Ratio​

Answer 1

Answer:

From the following prepare Bank Reconciliation statement in the books of

Rajath and co., as on 30.9.2020.

a. Overdraft balance as per cashbook Rs. 28,470.

b. Interest allowed by bank of Rs.200 was entered twice in the cash

book.

c. It was found that total of one page on the payment side of the cash

book which was Rs. 1,250 was written as Rs.1,520 on the next page.

d. A cheque of Rs.32,000 issued to Insurance company was not yet

presented for payment

e. Out of cheques issued for Rs.7,500 cheques of Rs.5,000 were

presented for payment till the date.

f. Out of the cheques presented for payment one cheque of Rs.700

was not honored due to some technical reasons. No entry was passed

in the cash book for dishonor.