Bill Sent for Collection

Q.

Prepare Proper subsidiary books and post them to the ledger from the following transactions for the month of February 2011

$\begin{array}{ccc}& & \text{Rs}\\ 1& \text{Goods sold to Sachin}& 5,000\\ 4& \text{Purchase from Kushal Traders}& 2,480\\ 6& \text{Sold goods to Manish Traders}& 2,100\\ 7& \text{Sachin returned goods}& 600\\ 8& \text{Return to Kushal Traders}& 280\\ 10& \text{Sold to Mukesh}& 3,300\\ 14& \text{Purchased from Kunal Traders}& 5,200\\ 15& \text{Furniture purchased from Tarun}& 3,200\\ 17& \text{Bought from Naresh}& 4,060\\ 20& \text{Return to Kunal Traders}& 200\\ 22& \text{Return to inwards from Mukesh}& 250\\ 24& \text{purchased goods from Kirit}\&\text{Co for list price}& 5,700\\ & \text{less 10}\%\text{trade discount}& \\ 25& \text{Sold to Shri Chand goods}& 6,600\\ & \text{less}5\%\text{trade discount}& \\ 26& \text{Sold to Ramesh Brothers}& 4,000\\ 28& \text{Return outwards to Kirit}\&\text{Co}& \\ & \text{less}\%\text{trade discount}& 1,000\\ 28& \text{Ramesh Brothers returned goods}& 500\end{array}$

Q.

Prepare single column cash book for the month of April 2016 of Lalit, a trade from the following particulars and post them into ledger.

$\begin{array}{ccc}2016& \text{Particular}& \text{Amt(Rs)}\\ \text{Apr 1}& \text{Cash in hand}& 75,000\\ \text{Apr 2}& \text{Cash sales}& 7,80,000\\ \text{Apr 3}& \text{Deposited cash into bank}& 6,00,000\\ \text{Apr 3}& \text{Paid Cheque to creditors of Rs 1, 49, 700 after deducting cash discount of}& 9,300\\ \text{Apr 4}& \text{Wages paid in cash}& 67,500\\ \text{Apr 4}& \text{Cash sales of Rs 5, 40, 000 of which Rs 4, 50, 000 were banked on 7th April}& \\ \text{Apr 9}& \text{Paid cash to tranport corporation of India Rs 13, 500 against their bill number 265}& \\ \text{Apr 15}& \text{Cash sales Rs 4, 50, 000 of which 3, 60, 000 were banked on 16th April}& \\ \text{Apr 17}& \text{Paid to cleaner in cash}& 10,800\\ \text{Apr 19}& \text{Cash sales}& 3,42,000\\ \text{Apr 20}& \text{Deposited cash into bank}& 2,25,000\\ \text{Apr 20}& \text{Paid cash for window cleaning}& 5,400\\ \text{Apr 21}& \text{Purchased goods on credit}& 45,000\\ \text{Apr 25}& \text{Paid csh for rates}& 1,08,000\\ \text{Apr 26}& \text{Cash sales}& 5,76,000\\ \text{Apr 28}& \text{Paid cash to Dharma, a creditor after deducting discount Rs1, 500}& 28,500\\ \text{Apr 29}& \text{Paid electricity bill in cash}& 27,000\\ \text{Apr 30}& \text{Cash collected from Karun (Debtor)Rs 1, 35, 000 after allowing discount of Rs 7, 500}& \end{array}$

Q.

Prepare two column cash book from the following transactions of M/s Raj Mohan for the month of April, 2016. Also prepare any five related ledger accounts and pass journal entries related to discount received and discount allowed.

$\begin{array}{ccc}2016& \text{Particular}& \text{Amt(Rs)}\\ \text{Apr 1}& \text{Cash in hand}& 70,000\\ & \text{Bank overdraft}& 66,000\\ \text{Apr 2}& \text{Cash Purchases Rs 8, 000 less trade discount @}10\%& \\ \text{Apr 3}& \text{Sold goods to Raja on credit}& 4,000\\ & \text{Purchased goods on credit from Rajesh}& 8,000\\ \text{Apr 4}& \text{Wages paid}& 7,000\\ \text{Apr 5}& \text{Cash sales}& 85,000\\ \text{Apr 7}& \text{Purchased goods from Manisha for Rs 61, 250 paid by cheque in full settlement}& 60,000\\ \text{Apr 9}& \text{Purchased furniture for cash}& 50,000\\ \text{Apr 10}& \text{Cash paid to Sarika discount received Rs 500}& 25,000\\ \text{Apr 11}& \text{Cheque issued to Manisha was dishonoured}& \\ \text{Apr 13}& \text{Cash sales}& 22,500\\ \text{Apr 16}& \text{Bank charged interest on overdraft}& 2,500\\ \text{Apr 18}& \text{Deposited into bank}& 35,000\\ \text{Apr 20}& \text{Paid telephone bill by cheque}& 3,000\\ \text{Apr 25}& \text{Sold goods for 1, 17, 500 to Sachin and received cheque in full dsettlement (Deposited}& 1,15,000\\ & \text{same day)}& \\ \text{Apr 27}& \text{Paid rent}& 4,000\\ \text{Apr 29}& \text{Drew cash for personal use}& 5,000\\ \text{Apr 29}& \text{Paid electricity bill in cash}& 27,000\\ \text{Apr 30}& \text{Paid salary}& 10,000\\ \text{Apr 30}& \text{Interest collected by bank}& 12,500\end{array}$

Q.

Following is the trial balance of J Subramanium on 31st March, 2016. Prepare the trading and profit and loss account for the year ended 31st March, 2016.

Trial Balance
as on 31st March, 2016
$\begin{array}{ccc}\text{Name of Account}& \text{Debit (Rs.)}& \text{Credit (Rs.)}\\ \text{Capital A/c}& & 30,000\\ \text{Stock A/C (1st April, 2015)}& 6,000& \\ \text{Cash at Bank}& 3,000& \\ \text{Cash in Hand}& 1,320& \\ \text{Machinery A/c}& 18,000& \\ \text{Furniture and Fittings A/c}& 4,080& \\ \text{Purchases A/c}& 45,000& \\ \text{Wages A/c}& 30,000& \\ \text{Fuel and Power A/c}& 9,000& \\ \text{Factory Lighting A/c}& 600& \\ \text{Salaries A/c}& 21,000& \\ \text{Discount Allowed A/c}& 1,500& \\ \text{Discount Received A/c}& & 900\\ \text{Advertising A/c}& 15,000& \\ \text{Sundry Office Expenses A/c}& 12,000& \\ \text{Sales A/c}& & 1,50,000\\ \text{Sundry Debtors}& 25,500& \\ \text{Sundry Creditors}& & 11,100\\ & \overline{\underset{–}{\underset{–}{1,92,000}}}& \overline{\underset{–}{\underset{–}{1,92,000}}}\end{array}$

Closing stock was valued at Rs. 8, 100

Q.

From the following trail balance extracted from the books of MMN, prepare the trading and profit and loss account for the year ended 31st December, 2016.

$\begin{array}{ccc}\text{Name of Accounts}& \text{Debit (Rs.)}& \text{Credit (Rs.)}\\ \text{Capital}& & 90,000\\ \text{Drawings}& 6,480& \\ \text{Land and Building}& 25,000& \\ \text{Plant and Machinery}& 14,270& \\ \text{Furniture and Fixtures}& 1,250& \\ \text{Carriage Inwards}& 4,370& \\ \text{Wages}& 21,470& \\ \text{Salaries}& 4,670& \\ \text{Provision for Bad Debts}& & 2,470\\ \text{Sales}& & 91,230\\ \text{Sales Return}& 1,760& \\ \text{Bank Charges}& 140& \\ \text{Coal, Gas and Water}& 720& \\ \text{Rates and Taxes}& 840& \\ \text{Discount}& & 120\\ \text{Purchases}& 42,160& \\ \text{Purchase Return}& & 8,460\\ \text{Bills Receivable}& 1,270& \\ \text{Trade Expenses}& 1,990& \\ \text{Sundry Debtors}& 37,800& \\ \text{Sundry Creditors}& & 12,170\\ \text{Stock(1st January, 2016)}& 26,420& \\ \text{Apprentice Premium}& & 500\\ \text{Fire Insurance}& 490& \\ \text{Cash at Bank}& 13,000& \\ \text{Cash in Hand}& 850& \\ \text{Total}& \overline{\underset{–}{\underset{–}{2,04,950}}}& \overline{\underset{–}{\underset{–}{2,04,950}}}\\ & & \end{array}$

Additional Adjustments:

Charge depreciation on land and building at $2\frac{1}{2}\%$, on plant and machinery account at 10% and on furniture and fixtures at 10%. Make a provision of 5% on debtors for doubtful debts.

Carry forward the following unexpired amounts.

(i) Fire insurance Rs. 125.

(ii) Rates and taxes Rs. 240

(iii) Apprentice premium Rs. 400.

(iv) Closing stock Rs. 29, 390

Q.

Darshan sold goods for Rs. 40, 000 to Varun on 8.1.2011 and drew upon him a bill of exchange payable after two months. Varun accepted the bill and returned the same to Darshan. On the due date, the bill was met by Varun.

Record the necessary Journal entries in the books of Darshan and Varun in the following circumstances.

• When the bill was retained by Darshan till the date of its maturity.
• When Darshan immediately discounted the bill at the rate of 6% Per annum with his bank.
• When the bill was endorsed immediately by Darshan in favour of his creditor Suresh.
• When three days before its maturity, the bill was sent by Darshan to his bank for collection.

Q.

What is a voucher?

Q.

On January 1, 2011, Bhanu and Naman drew on each other a bill for Rs.8, 000 payable 3 months after the due date for their Mutual Benefit. On January 2, they discounted with their bank each other's bill at 5% per annum. On the due date, each met his own's acceptance.

Give Journal entry in the books of Bhanu and Naman.

Q.

Distinguish between Cash Discount and Trade Discount?

Q. When a bill is sent to the bank and instructed that the bill be retained till the date of maturity and realise it, it is said that the bill is .

1. discounted
2. endorsed
3. sent for collection
4. renewed

Q.

Vishal sold goods for Rs. 7, 000 to Manju on January 5, 2011 and drew upon her a bill of exchange payable after 2 months. Manju accepted Vishal's draft and handed over the same to Vishal after acceptance. Vishal immediately discounted the bill with his bank at the rate of 12% per annum. On the due date, Manju met her acceptance.

Journalise the above transactions in the books of Vishal and Manju.

Q.

Distinguish between trade discount and cash discount.

Q.

A Bill received and encashed with the bank on the same day is known as ___

1. Bill at sight

2. Noting of a bill

3. Discounting the bill

4. Bill sent for collection

Q.

When a bill is sent to the bank with an instruction that the bill be retained till the date of maturity and realise it on the due date. it is called ……….?

1. Discounting of bill

2. Retiring the bill

3. Bill sent for collection

4. Renewal of the bill

Q. Cheques deposited in bank may not be available for immediate use due to ____________.

1. payment float
2. receipt float
3. playing float
4. net float