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?

Q.

Q.

The passbook of Mr Mohit current account showed a credit Balance of Rs. 20,000 dated December 31, 2005. Prepare a Bank Reconciliation statement with the following information.

(i) A cheque of Rs. 400 drawn on his saving account has been shown on current account.

(ii) He issued two cheques of Rs. 300 and Rs. 500 on of December 25, but only the 1st cheque was presented for payment.

(iii) One cheque issued by Mr Mohit of Rs. 500 on December 25, but it was not presented for payment whereas it was recorded twice in the cash book.

Q. The pass book of Mr. Mohit current account showed a credit Balance of Rs.20,000 on dated December 31, 2005. Prepare a Bank Reconciliation Statement with the following information.
i) A cheque of Rs.400 drawn on his saving account has been shown on current account.
ii) He issued two cheques of Rs.300 and Rs.500 on of December 25, but only the 1st cheque was presented for payment.
iii) One cheque issued by Mr.Mohit of Rs. 500 on December 25, but it was not presented for payment whereas it was recorded twice in the cash book.

Q.

Company purchased a machine on credit from Mr. Ram for Rs 1,00,000. Now a cheque has been issued in his favor. Which of the following is correct?

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?