Question

While comparing Ranjan’s Cash Book with the Bank Statement of his overdraft account For the month of April, 2019, following were noticed: (a) Cash Book showed an overdraft of ₹ 75,000. (b) The payment side of the Cash Book had been undercast by ₹ 15,000. (c) A cheque for ₹ 9,500 drawn on his Savings Account has been shown in the books as drawn on his Current Account. Cheques amounting to ₹ 35,000 drawn and entered in the Cash Book have not been presented. (d) Cheques amounting to ₹ 50,000 sent to the bank for collection, which though entered in the Cash Book have not been credited by the bank. (e) Bank charges of ₹ 600 as per Bank Statement have not been recorded in the Cash Book. These bank charges were reversed by the bank on 10th April, 2019. (f) Interest from investment amounting to ₹ 35,000 have been received directly by the bank and not entered in the Cash Book. (g) Cheque of ₹ 10,000 dated 10th May, 2019 issued to Ramesh & Co. was dishonoured by the bank being post-dated. It was also not recorded in the books of account yet. You are required to prepare Bank Reconciliation Statement on 30th April, 2019.

Answer 1

Answer:

pilferage (at list price) 76,000. Debtors at Mumbai:Opening & 10,000 Cash remitted by Mumbal Branch to HO: t3,24,870. Discount Allowed to Debtors t 26, 730. Goods received by Mumbai till close of the year 2,54,000. Provision is to be male for discount on Debtors at payments. 15\% on prompt payments at year end on the basis of year's trend of prompt Cash remitted by HO to Branch for Expenses: 18.000 Hranch Expenses still outstanding 1,482 Manager is entitled to a cammission @ 6% of net profits alter charging such commission. Required: Prepare Mumbai Branch Debtors Ale, Mumbai Branch Stock Account, Mumbai Branch Adjustment Ale, Mumbai Branch Expenses Account and Mumbai Branch Profit & Loss A / c under Stock & Debtors Method, ullu