Cheques Deposited Dishonoured by Bank

Q.

Journalise the following transaction 2016
Jan 1 Rajesh started business with cash Rs. 1, 00, 000 and a building valued at Rs. 5, 00, 000
Jan 3 Purchased goods amounting to Rs. 2, 00, 000 out of which goods of Rs. 1, 80, 000 were purchased on credit from Smith
Jan 5 Sold goods to Anil 44, 000
Jan 9 Goods returned by Anil 4, 000
Jan 11 Goods purchased from Karan 63, 000
Jan 15 Goods returned to Karan 3, 000
Jan 22 Purchased goods for cash 2, 000
Jan 22 Paid cartage 100
Jan 30 Paid interest on loan 1, 000

Q.

When cheque is not paid by the bank, it is called?

1. Honoured

2. Endorsed

3. Omitted

4. Dishonoured

Q.

A cheque received from Ramesh of Rs 20, 000 to whom the goods were sold on credit was dishonoured. Which of the following accounts shall be effected after preparation of Bank Reconciliation?

1. Bank column of cash book

2. Cash column of cash book

3. Account of Ramesh in our books

4. Both A & C

Q.

On February 2, 2011, Verma purchased from Sharma Goods for Rs. 17, 500. Verma paid Rs. 2, 500 immediately and for the balance gave a bill to Sharma payable after 60 days.
Sharma immediately endorsed the bill in favour of his creditor Gupta for the fulll settlement of a debt of Rs. 15, 400. On the due date of the bill, Gupta presented the bill to Verma which the latter dishonoured and Gupta paid Rs. 50 as noting charges. On the same date, Gupta informed Sharma about the dishonour of the bill. Sharma settled his debt to Gupta by cheque for Rs. 15, 500 which includes nothing charges and interest. Verma settled Sharma's claim by cheque for the same amount.
Record the necessary journal entries is the books of Sharma, Gupta and Verma for the above transaction and prepare Verma's and Gupta's Accounts in the books of Sharma, Sharma's account in the book of Verma and also Sharma's Account in the books of Gupta.

Q.

Is an invoice a bill of exchange?

Q.

On February 14, 2011, Rashmi sold good Rs. 7, 500 to Alka. Alka paid Rs. 500 in cash and for the bank balance accepted a bill of exchange drawn upon her by Rashmi payable after two months. On April 10, 2011, Alka approached Rashmi to cancel the bill since she was short of funds. She further requested Rashmi to accept Rs. 2, 000 in cash and draw a new bill for the balance including interest Rs. 500. Rashmi accepted Alka's request and drew a new bill for the amount due payable after 2 months. the bill was accepted by Alka. The new bill was duly met by alka on maturity.
Record the necessary Journal entries in the books of Rashmi and Alka and prepare Alka's Account in the books of Rashmi's and Rashmi's account in the books of Alka.

Q.

Which of the following is not true with regards to dishonor of a cheque?

1. Dishonored cheque is a cheque which is presented for payment and the drawer has insufficient fund in his or her account to cover the cheque

2. Dishonored cheque is a cheque which is presented for payment and the drawer has sufficient fund in his or her account to cover the cheque

3. The dishonored cheque is shown in the debit column of the bank statement

4. The customer is still owing us the money as his or her cheque has been dishonored

Q. When cheque is not encashed by the bank, it is said that the cheque is .

1. honoured
2. endorsed
3. omitted
4. dishonoured

Q.

Mr. Ravi has bought goods worth Rs 5, 00, 000 from our company & issued a cheque on the same day. 10 days later, when the cheque was presented, there were insufficient funds in his account. What happens to the cheque?

1. Endorsed Cheque

2. Cancelled Cheque

3. Stale Cheque

4. Dishonoured Cheque

Q.

Abdulla sold goods to Tahir on January 17, 2011 for Rs. 18, 000. He drew a bill of exchange for the same amount on Tahir for 45 days. On the same date, Tahir accepted the bill and returned it to abdulla. On the due date, Abdulla presented the bill to Tahir which was dishonoured. Abdulla paid Rs. 40 as nothing charges. Five days after the dishonour of his acceptance, Tahir settled his debt by making a payment of Rs. 18, 700 including interest and noting chares.
Record the necessary Journal entries in the books of abdulla and Tahir. Also prepare Tahir's Account in the books of Abdulla and Abdulla's Account in the books of Tahir.

Q.

A company's cash account showed a balance of Rs 6, 000 without taking into effect the following transactions:
1. The bank statement shows interest earned of Rs 19
2. Service charges of Rs 30
3. A customer's cheque got dishonored of Rs 1, 000
4. Cheque book printing fee of Rs 90
What will be the balance as per pass book?

1. Rs 5, 079

2. Rs 4, 861

3. Rs 4, 899

4. Rs 5, 869

Q.

60 transactions with their journal, ledger, trial balance, cash book, trading and p/l ac.and final accounts for project work

Q. We had to pay a sum of Rs 40, 000 to Mr. Akhil. By mistake, Rs 4, 00, 000 was entered on the cheque instead of Rs 40, 000 but our bank account did not have such a large amount of balance. What will happen to that cheque?

1. It shall become an endorsed cheque
2. It shall become a cancelled cheque
3. It shall become a dishonored cheque
4. It shall become a stale cheque

Q. Journalise the following transaction:
Sohan is declared insolvent. Received from his official receiver 60 paise in a rupee on a debt of Rs. 10, 000.

Q. A customer's cheque returned dishonoured is recorded in_________________.

1. Purchase Return Book
2. Sales Return Book
3. Bank Statement
4. Journal

Q. P's trial balance contains the following information:
Bad debts Rs.3, 000
Provision for bad debts Rs.3, 500
It is desired to make a provision of Rs. 4, 000 at the end of the year. the amount to be debited to profit and loss a/c is_________.

1. Rs.5, 000
2. Rs. 6, 500
3. Rs. 3, 500
4. Rs.4, 000