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AoA
 CA. Naresh Aggarwal’s
ACADEMY of ACCOUNTS
Accounting • Costing • Taxation • Financial Management
West Patel Nagar, New Delhi. Ph:8800215448. Website: www.academyofaccounts.org

AoA
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 CA. Naresh Aggarwal’s
ACADEMY of ACCOUNTS
Accounting • Costing • Taxation • Financial Management
West Patel Nagar, New Delhi. Ph:8800215448. Website: www.academyofaccounts.org

Bank Reconciliation

AoA
Statement
Watch us on
&
Rectification of Errors
https://www.youtube.com/CaNareshAggarwal

CA. Naresh Aggarwal’s

ACADEMY of ACCOUNTS
Accounting • Costing • Taxation • Financial Management
West Patel Nagar, New Delhi. Ph:8800215448. Website: www.academyofaccounts.org
 Hints:
CA. Naresh Aggarwal’s
Assignment - 4 For Bank Reconcialation Statement
ACADEMY of ACCOUNTS
Actual•effects
Accounting Costingof•some common
Taxation transactions
• Financial Management
Cash Pass
West Patel Nagar, New Delhi. Ph:8800215448. Website: www.academyofaccounts.org
Book Book
1. Cheque issued/drawn but not presented for payment -
2. Cheque issued/drawn but not recorded in Cash Book -
3. Cheque issued/drawn but dishonored -
4. Cheque deposited/Paid into bank but not credited/cleared +
5. Cheque deposited/Paid into bank but not recorded in Cash Book +
6. Cheque deposited/Paid into bank but dishonored +
7. Interest allowed/collected by the bank +
8. Interest and expenses charged by the bank -
9. Any direct payment made by the bank -

AoA
10. Direct deposits/receipts in the bank by customers/others +
11. Bills Receivable discounted, later dishonored -
12. Debit in Cash Book +
Watch us on 13. Credit in Cash Book -
14. Debit in Pass Book -
15. Credit in Pass Book +

https://www.youtube.com/CaNareshAggarwal In Cash book In Pass book

Dr. = (+) Dr. = (-)
Cr. = (-) Cr. = (+)
Overdraft in any book = -
Simple Balance in any book = +

For Rectification of Errors

Undercast means added short : to rectify (+)
Overcast means added more : to rectify (-)

Dr. & Dr. = (+) Cr. & Cr. = (+)

Price: 40/- Dr. & Cr. = (-) Cr. & Dr. = (-)
24 Rectification of Errors
(b) A cash sale of Rs.1,350 to Sumit correctly entered in the Cash Book was posted
to the credit of the personal account in the Ledger.
(c) Goods invoiced to Sudhir at Rs.2,100 on 20th December were returned by him on
the 23rd and taken into stock but no entries being made in the books.
(d) Bills Receivable from Suresh Rs.2,750 posted to the credit of Bills Payable
Account and credited to Suresh also.
Q-41: You are presented with a Trial Balance showing a difference which has
been carried to Suspense Account, and the following errors are revealed :
(a) A cheque for Rs.700 received from Keshav has been dishonored on maturity
and was passed to the debit of Allowances Account.
(b) Goods amounting to Rs.240 had been returned by a customer and were taken
into stock, but no entry in respect thereof was made in the books.
(c) Rs.17,000 paid for the purchase of a motorcycle for Mr. Bhushan (a partner)
has been charged to Sundry Expenses Account.
(d) A sale of Rs.2,200 to Varun was credited to his account.
(e) A sale of Rs.1,650 has been passed through the Purchases Day Book. The
AoA
customer's account has however been correctly debited.
Theoretical Questions
1. What is Bank Reconciliation Statement ? Why does it prepared ?
2. Explain the reasons on account of which the balance shown by Cash Book
does not agree with balance shown by Pass Book.
3. What is Trial Balance ? Why does it prepared ?
4. Name the types of errors and briefly explain them.
5. What type of errors do not effect the Trial Balance ?
or
Is Trial Balance, if agreed, is the proof of accuracy of Accounts ? If not, then
Why ?
6. What do you mean by ‘Suspense Account’ ? Why does it prepared ?
••••••••••••••••••••••
Practice in Accountancy 1
CA. Naresh Aggarwal’s
ACADEMY of ACCOUNTS
Accounting • Costing • Taxation • Financial Management
West Patel Nagar, New Delhi. Ph:8800215448. Website: www.academyofaccounts.org
Bank Reconciliation Statement
Q-1: Prepare a bank reconciliation statement from the following information:
(a) Cash at bank as shown by Cash Book Rs. 7,500.
(b) Cheques drawn but not yet presented Rs. 800.
(c) Cheques paid into bank but not yet credited Rs. 200.
(d) Bank charges not yet entered in Cash Book, Rs. 10.
[Balance as per Pass Book: Rs.8,090]
Q-2: The Cash Book shows a balance of Rs. 12,500. On comparing the Cash
Book with the Pass Book, the following discrepancies were noted :
Rs.
(i) Cheques issued but not yet presented for payment 600
(ii) Cheques deposited in bank but not collected 900
(iii) Bank paid insurance premium 500
(iv) Bank charges 30
(v) Directly deposited by a customer 800
(vi) Interest on investment collected by bank 200
[All India 1986]
[Balance as per Pass Book: Rs.12,670]
Q-3: The balance of cash at bank, as shown by the Cash Book of Anjali on 31 st
December, 2012 was Rs. 8,200. On checking the entries with the Pass Book, it was
found that:
(a) Cheques of Rs. 2,500 paid in on 30th December were not yet credited.
(b) Cheques of Rs. 1,500 issued on 28th December were not presented until 5th
of January.
(c) There was a credit of Rs. 75 for interest in the Pass Book and a debit of Rs. 50
for Bank charges which were not entered in the Cash Book.
Prepare the Bank Reconciliation Statement.
[Balance as per Pass Book: Rs.7,225]
Q-4: On 31st March 2012 the Cash Book showed a balance of Rs. 2,500 as cash
at Bank, but the bank Pass Book made up to the same date showed that cheques
for Rs. 200, Rs. 100 and Rs. 400 respectively had not been presented for payment
also cheques to the amount of Rs. 500 paid into the account had not yet been
2 Bank Reconciliation Statement
cleared. Find by means of a Reconciliation Statement the balance shown in thePass
Book.
[Balance as per Pass Book: Rs.2,700]
Q-5: The Cash Book of a Sudhir showed a bank balance of Rs. 3,500 on 31st
December, 2012. On going through the Cash Book, it was found that:
(a) Two cheques for Rs. 600 and Rs. 800 deposited in the month of December
were not credited in the Pass Book till January 4, 2013
(b) Three cheques for Rs. 700; Rs. 500 and Rs. 800 issued on December 28 were
not presented for payment till January 3, 2013.
(c) Bank had credited the merchant for Rs. 150 as interest and had debited him for
Rs. 30 as bank charges, for which there were not corresponding entries in the
Cash Book.
Prepare a Bank Reconciliation Statement as on December 31, 2012.
[Balance as per Pass Book: Rs.4,220]
Q-6: Jagdish Kumar has his account at the Punjab National Bank, Delhi. According
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to his Cash Book, his bank balance on 31st December, 2012 was Rs. 4,500. When
compared with Pass Book, the following facts were discovered:
(a) He sent cheques for Rs. 900 to his bank for collection but cheques amounting
to Rs. 400 were not collected by that date.
(b) Out of the cheques issued by him in payment of his debts, cheques for Rs. 300
were not presented for payment.
Prepare a Bank Reconciliation Statement and find out the balance as shown by
his Pass Book.
[Balance as per Pass Book: Rs.4,400]
Q-7: On 31st December 2012, Cash Book of Sanjay showed a debit bank balance
of Rs. 10,500. When compared with Pass Book, the following facts were discovered:
(a) On 30th December, two cheques of Rs. 1,500 and Rs. 600 were deposited in
the bank but were not realized till the date.
(b) On 28th December, three cheques of Rs. 800, Rs. 400 and Rs. 1,800 were
issued but none of these was presented before the bank for payment.
(c) On 31st December, Bank credited Rs. 200 as interest but this was not recorded
in the Cash Book.
(d) Bank had charged Rs. 60 but this was not recorded in the Cash Book.
Prepare Bank Reconciliation Statement on 31st December 2012.
[Balance as per Pass Book: Rs.11,540]
Q-8: At the end of the year Sonia’s Cash Book showed a bank balance of Rs.
3,500. On comparing the same with the Bank Pass Book, she found that:
(a) Cheques amounting to Rs. 1,200 had been issued towards the close of the
year, Rs. 300 of which were presented for payment in January next.
Practice in Accountancy 23
CA. Naresh Aggarwal’s
ACADEMY of ACCOUNTS
Accounting • Costing • Taxation • Financial Management
West Patel Nagar, New Delhi. Ph:8800215448. Website: www.academyofaccounts.org
(d) A discount of Rs.35 allowed to customer has been credited to him as Rs.53.
(e) The total of the Inward Returns has been added Rs.75 short.
(f) An item of sales to Manoj for Rs.80 was posted as Rs.8 in the Sales Account.
Give the correcting entries and prepare the Suspense Account.
Q-38: A book-keeper while balancing his books finds that he is out excess credit
by Rs.3,150. Being required to prepare the final accounts, he places the difference
to a newly opened Suspense Account which he carries forward to the next year. In
the next year the following mistakes were discovered :
(a) Goods bought from Prashant amounting to Rs.580 had been posted to the
credit of his account as Rs.500.
(b) A dishonored bill of exchange receivable of Rs.200 returned by the firm's Bank
had been credited to the Bank Account and debited to Bills Receivable Account.
(c) An item of Rs.1,000 entered in the Sales Returns Book had been posted to the
debit of the customer who returned the goods.
Q-39: The book-keeper of a firm, having been unable to agree the Trial Balance
raised a Suspense Account in which he entered the amount by which he was out
of balance and prepared final accounts, subsequently the following errors were
discovered :
(a) Goods bought from a supplier amounting to Rs.750 had been noted to the
credit of his account as Rs.700 only.
(b) A dishonored Bill of Exchange (receivable) for Rs.1,400 returned to the firm's
Bank had been credited to the Bank Account and debited to Bills Receivable
Account. A cheque was received later from the customer for Rs.1,400 duly
recorded.
(c) An item of Rs.170 entered in the Sales Return Book bad been posted to the
debit of the customer who returned the goods.
(d) An amount of Rs.2,400 owing by a customer had been received and duly
entered in his account but not posted to the Cash Account.
Show the Suspense Account as raised by the book-keeper, with the adjusting
entries you would find it necessary to make therein.
Q-40: You are presented with a Trial Balance showing a difference which has
been carried to Suspense Account, and the following errors are revealed :
(a) Rs.2,700 paid in cash for a typewriter was charged to Office Expenses Account.
22 Rectification of Errors
(d) From the Purchases Book Sohan’s Account was debited with Rs.1,550.
(e) Cash Rs.1,250, received from Manju against debt previously written off, was
credited to her account.
Rectify the errors by means of suitable Journal entries and show the Suspense
Account.
Q-35: The books of a private firm have been posted upto 31.03.2012, how would you
correct the following errors which were subsequently found therein :
(a) An amount of Rs.1,300 received from Mohan on 1st April, 2012 had been entered
in the Cash Book as having been received on 31st March 2012.
(b) Rs.2,500 paid for the purchase of Furniture for one of the partners Mr. Suraj had
been posted to Furniture Account.
(c) An addition in the Returns-Inward Book had been cast Rs.180 short.
(d) A cheque for Rs.100 drawn for Petty Cash Account posted in the account of
cashier Ankur.
(e) Rs.170 appearing in the discount column on the credit side of the cash book for a
settlement with Madan had not been posted to the personal account.
AoA
Journalize the necessary corrections.
Q-36: You are presented with a Trial Balance showing a difference which has been
carried to Suspense Account, and the following errors are subsequently discovered.
Make the necessary correcting entries and show the Suspense A/c.
(a) Goods amounting to Rs.1,650 sold to Sudesh were correctly entered in the Sales
Book but posted to her A/c as Rs.650.
(b) A cash sale of Rs.1,050 to Bindu correctly entered in the Cash Book was posted
to the credit of the Personal account.
(c) Goods worth Rs.450 returned by Gulshan entered in the Sales Book were posted
therefrom to the credit of Gulshan's Personal Account.
(d) Goods invoiced at Rs.1,150 and debited on 20th December to Neeru were returned
on the 23rd and taken into stock but no entry had been made in the books for
return of goods.
(e) The Sales Returns Book was overcast by Rs.220.
(f) A Bills Receivable from Hema Rs.600 posted to the credit of Bills Payable Account.
[Difference in Trial Balance: Rs.2,880 Dr.]
Q-37: In taking out a Trial Balance, a book-keeper finds Rs.1,860 excess debit. Being
desirous of closing his books, he places the difference to a newly opened Suspense
Account which is carried forward. In the next period he discovers that :
(a) A credit purchase from Sangeeta of Rs.1,400 has been debited to personal account
as Rs.400 only.
(b) A sum of Rs.200 written off to Fixtures as depreciation has not been posted to
Depreciation Account.
(c) Rs.3,500 for Furniture purchased have been charged to the Purchases Account.
Practice in Accountancy 3
CA. Naresh Aggarwal’s
ACADEMY of ACCOUNTS
Accounting • Costing • Taxation • Financial Management
West Patel Nagar, New Delhi. Ph:8800215448. Website: www.academyofaccounts.org
(b) She had deposited cash and cheques worth Rs. 750 on 29th December, 2012, of
which cheques for Rs. 350 were cleared in January.
(c) The Bank has credited her account with Rs. 40 in the Pass Book in respect of
interest on Current A/c and has debited her with Rs. 15 as charges for collecting
outstation cheques.
Prepare a Bank Reconciliation Statement as on 31st December 2012.
[Balance as per Pass Book: Rs.3,475]
Q-9: Prepare Bank Reconciliation Statement from the following particulars on 31
st July, 2012 :
(a) Balance as per Pass Book Rs. 2,500.
(b) Three cheques for Rs. 600; Rs. 200 and Rs. 100 issued in July, 2012 were
presented for payment at the bank in August, 2012.
(c) Two cheques of Rs. 150 and Rs. 250 sent to the bank for collection were not
entered in the Pass Book by July 31, 2012.
(d) Bank charged Rs. 70 for its commission and allowed interest Rs. 10 which
were not mentioned in his Cash Book.
[Balance as per Cash Book: Rs.2,060]
Q-10: On 1st January 2013, Mr. Kapoor had an overdraft of Rs. 6,000 as shown by
his Cash Book in Bank Column. When compared with Pass Book, the following
facts were discovered:
(a) Cheques amounting to Rs. 1,600 had been paid in by him but were not collected
by the Bank by 1st January, 2012.
(b) He issued cheques of Rs. 900 which were not presented to the Bank for
payment up to that day.
(c) There was also a debit in his Pass Book of Rs. 90 for interest and Rs. 40 for
bank charges.
Prepare a Bank Reconciliation Statement.
[Overdraft as per Pass Book: Rs.6,830]
Q-11: On 31st December 2012, the Cash Book of Mohan showed an overdraft of
Rs. 22,000 with the Bank of Punjab. This balance did not agree with the balance as
shown by the Bank Pass Book. You find that:
(a) Mohan had paid into the Bank on 26th December, four cheques of Rs. 2,000;
Rs. 4,000; Rs. 3,000 and Rs. 2,500. Of these the cheque for 6000 was credited
4 Bank Reconciliation Statement Practice in Accountancy 21
by the Bank in January 2013.
(b) Mohan had issued on 24th December three cheques for Rs. 5,000; Rs. 2,000 and CA. Naresh Aggarwal’s
Rs. 4,000. The first two cheques were presented to the Bank for payment in
December, and third cheque in January 2013.
ACADEMY of ACCOUNTS
(c) On 31st December 2012 the Bank had debited Mohan's account with Rs. 100 for Accounting • Costing • Taxation • Financial Management
interest, and Rs. 20 for charges, but Mohan had not recorded these amounts in West Patel Nagar, New Delhi. Ph:8800215448. Website: www.academyofaccounts.org
his Books.
You are required to prepare a Bank Reconciliation Statement as at 31st December
Q-32: The Trial Balance of a book-keeper shows an excess of debits over credits by
2012 and ascertain the balance as per the Bank Pass Book.
Rs.1,050. This difference is placed in a Suspense account. Later on the following
[Overdraft as per Pass Book: Rs.24,120]
errors are discovered :
(a) A credit purchase of Rs.650 has been debited to a personal account as Rs.560.
Q-12: From the following particulars, prepare a statement showing the balance that
(b) A sum of Rs.350 written off fixtures as depreciation has not bee posted to
would appear in the Pass Book of Ajay as on 31st December 2012.
Depreciation Account.
(a) The overdraft as per Cash Book on 31st December 2012, was Rs. 4,700.
(c) Rs.4,500 paid for purchase of furniture have been charged to the Purchases
(b) Interest on overdraft for six months ending 31st December 2012, Rs. 120 is debited
Account.
in the Pass Book but not in cash book.
(d) A discount allowed to a customer has been credited to him as Rs. 8 in place of
(c) Bank charges for the above period also debited in the Pass Book amounted to
Rs.80.

AoA
Rs. 50.
(e) A sale of Rs.950 was posted as Rs.590 in the Sales Account.
(d) Cheques issued but not cashed prior to 31st December 2012, amounted to Rs.
(f) The total of Returns Inward Book has been added Rs.80 short.
1,000.
Give Journal entries to correct these errors and prepare the Suspense Account.
(e) Cheques paid into bank but not cleared before 31st December 2012, were for Rs.
[Suspense Account closing balance: Rs.958 Cr.]
1,750.
(f) Interest on investments collected by the bank and credited in the Pass Book
Q-33: The accountant of a firm finds that the trial balance as on 31st December 2012
amounted to Rs. 650.
is out by an excess debit of Rs.2,880. He placed the amount in the Suspense Account.
[Overdraft as per Pass Book: Rs.4,970]
In the first week of January, 2012, he discovered the following errors. Pass Journal
entries necessary to rectify these errors and show the Suspense Account as it would
Q-13: On 31st December 2012, the Cash Book of Sangeeta showed an overdraft of
appear at the end of the week.
Rs. 5,000. From the following particulars make out a Bank Reconciliation Statement
(a) Cash paid to Bharat Rs.750 was posted on the credit of Bharti’s A/c as Rs.570.
and ascertain the balance as per Bank Pass Book :
(b) Discount allowed by Mohan Rs.75 was not entered in the Cash Book but Mohan’s
(a) Cheques drawn but not cashed before 31st December 2012, amounted to
stands debited correctly.
Rs.3,000.
(c) No entry was made for goods worth Rs.450 taken away by proprietor for personal
(b) Cheques paid into the Bank but not collected and credited before 31st Dec. 2012
use.
amounted to Rs. 4,500.
(d) Rs.1,500 received from Mr. Gupta for interest on loan to him were recorded in the
(c) A bill receivable for Rs. 500 discounted from bank had been dishonoured but not
Cash Book. But the entry was not posted in the ledger.
recorded in the cash book at the time of dishonoured.
(e) The total of Returns Outward Book was short by Rs.90.
(d) Debit is also made in the Pass Book for Rs. 150 on account of interest on overdraft
and Rs. 50 on account of charges for collecting bills and cheques.
Q-34: The book-keeper of a firm found that his trial balance was out (excess credit)
(e) The bank has collected interest on investment and credited Rs. 1,400 in the Pass
by Rs.1,750. He placed the amount in the Suspense Account and subsequently found
Book.
the following errors :
[Overdraft as per Pass Book: Rs.5,800]
(a) The total of the Discount column on the credit side of the Cash Book Rs.120 was
not posted in the Ledger.
Q-14: On 31st December, 2012 the Pass Book of Mr. Bachan’s Current Account
(b) The total of the Purchases Book was Rs.150 short.
showed a credit balance of Rs. 8,000. Prepare a Bank Reconciliation Statement with
(c) A sale of Rs.1,200 to Akshay was entered in the Sales Book as Rs.2,100.
20 Rectification of Errors Practice in Accountancy 5

Q-29: An accountant while balancing his books found that there was a debit excess CA. Naresh Aggarwal’s
of Rs.1,850 in the Trial Balance. The difference was placed in the Suspense A/c and
the books were closed. The following errors were disclosed afterwards :
ACADEMY of ACCOUNTS
(a) Rs.2,700 of sales proceeds of old machinery had been posted to the Sales Accounting • Costing • Taxation • Financial Management
Account. West Patel Nagar, New Delhi. Ph:8800215448. Website: www.academyofaccounts.org
(b) Rs.950 the price of goods purchased from Raman had been shown in the credit
side of his account as Rs.50.
the following information :
(c) Rs.80 discount allowed by Karma had been shown in his Account but not posted
(i) Mr. Bachan issued a cheque of Rs. 500 on 25th of December, but this was not
to Discount Account.
presented for payment whereas this was recorded twice in the Cash Book.
(d) A sum of Rs.800 owed by Himanshu had not been included in the list of Debtors.
(ii) A cheque of Rs. 300 drawn on his Saving Deposit Account has been shown as
(e) Account of Vikas had been debited with Rs.180 on account of goods returned by
drawn on Current Account.
him.
(iii) A cheque of Rs. 140 issued on 18th December was wrongly taken in the cash
Give Journal entries to correct these errors and prepare Suspense Account.
column.
[Suspense Account closing balance: Rs.1,310 (Cr.)]
(iv) In the Pass Book a bank charges of Rs. 20 was recorded twice while another
bank charges of Rs. 25 but non of them were recorded in the Cash Book.
Q-30: The Trial Balance of a firm is out by Rs. 3,150 (excess debit). The following
[Balance as per Cash Book: Rs.6,905]

AoA
errors were found subsequently. Pass Journal entries to correct them.
(a) An amount of Rs. 1,200 was received from Bunti on 31st December 2012, but
Q-15: On 31st March, 2012 your Bank Pass Book showed a balance of Rs.10,000 to
had been entered in the Cash Book on 3rd January 2013.
your credit. Before that date, you issued cheques amounting to Rs. 2,500 of which
(b) The Returns Inward Book for December had been cast Rs.50 short.
cheques amounting to Rs. 1,000 were presented for payment. A cheque of Rs. 800
(c) The purchase of an office table costing Rs.1,400 had been passed through the
paid by you into the Bank on March 29 was not yet credited in the pass book. You had
Purchases Day Book.
also received a cheque for Rs. 400 which although entered by you in the Bank Column
(d) Rs.750 paid for wages to workmen for making Furniture had been charged to
of Cash Book but was omitted to be paid into the Bank. On 15th March, a cheque of
Wages Account.
Rs. 250 received by you was paid into the Bank and collected but the same was
(e) A purchase of Rs.750 from Shivali had been posted to the debit of her account as
omitted to be entered in the Cash Book. There was a credit of Rs. 80 for interest and
Rs.570.
a debit of Rs. 20 for Bank charges. Draw up a Reconciliation Statement showing
[Suspense Account closing balance: Rs.1,880 Cr.]
reconciliation between your Cash Book and the Bank Pass Book.
[Balance as per Cash Book: Rs.9,390]
Q-31: A book-keeper failed to balance his trial balance, the credit side exceeding the
debit side by Rs.1,850. This amount was entered in a Suspense Account Later, the
Q-16: From the following particulars, prepare a Bank Reconciliation Statement of
following errors were discovered. Pass Journal entries to correct them.
Sunil, on 31 st December 2012 :
(a) The total of the credit side of Mahesh’s account was overcast by Rs.90.
(a) Balance as per Pass Book on 31st December, 2012 is Rs. 7,500.
(b) The Sales Book was undercast by Rs.40.
(b) Cheques for Rs. 3,100 were issued during the month of December but of these
(c) Goods worth Rs.100 purchased from Anjali were wrongly entered in the Sales
cheques for Rs. 1,700 were presented in the month of January, 2013 and one
Book but her account was correctly credited.
cheque for Rs. 300 was not presented for payment.
(d) The total of Returns Outward Book amounting to Rs.170 was not posted to the
(c) Cheque and cash amounting to Rs. 4,800 were deposited in Bank during December
ledger.
but credit was given for Rs. 3,800 only.
(e) A credit balance of Rs.650 of Interest Received Account was shown as Rs.560.
(d) A customer had deposited Rs. 650 into the Bank directly.
(f) Goods worth Rs.420 sold to Sanjay were correctly entered in the Sales Book, but
(e) The bank has credited the merchant for Rs. 100 as interest and has debited him
posted to his account as Rs.240.
for Rs. 30 as bank charges, for which there are no corresponding entries in Cash
[Suspense Account closing balance: Rs.1,680 Dr.]
Book.
[Balance as per Cash Book: Rs.5,780]
6 Bank Reconciliation Statement Practice in Accountancy 19

Q-17: On 31st December, 2012 the Pass Book of a merchant shows a credit balance CA. Naresh Aggarwal’s
of Rs. 4,300.
(a) The cheques and drafts sent to the bank but not collected and credited to
ACADEMY of ACCOUNTS
Rs.790. Accounting • Costing • Taxation • Financial Management
(b) Three cheques drawn for Rs. 250, Rs. 150 and Rs. 200 respectively were not West Patel Nagar, New Delhi. Ph:8800215448. Website: www.academyofaccounts.org
presented for payment till 31st January next year.
(c) Bank has paid a bill payable amounting to Rs. 1,200 but it has not been
(c) Discount Rs.180 received were posted to the debit of Discount Account.
entered in the Cash Book.
(d) Rs.350 paid for repairs to motor car was debited to Motor Car A/c as Rs.530.
(d) A bill receivable of Rs. 400 which was discounted with the Bank was dishonored
(e) Rs.880 paid to Deepak was debited to the account of Deepika.
by the drawee on due date but no entry was made in cash book for dishonor of
Give journal entries to rectify the above errors, and state what amount was carried
the bill.
to Suspense Account.
Prepare a Bank Reconciliation Statement and show the balance as shown by the
[Suspense Account opened with a credit of Rs.4,440]
Cash Book.
[Balance as per Cash Book: Rs.6,090]
Q-27: The Trial Balance of Sushmita did not agree and the difference in books
was carried to Suspense Account. Pass the entries required to rectify the following
Q-18: In comparing the Bank Pass Book up to 30th June with the Bank Account in
errors which accounted for the difference. Also prepare the Suspense Account :

AoA
the ledger, we find that the Pass Book shows an overdraft of Rs. 1,500.
(a) A Sales Invoice for Rs.1,700 for goods sold on credit to Bharat was entered in
The following differences are found :
the Purchases Book but in the Ledger the amount was correctly debited to the
(a) A charge of Rs.75 has been made by the bank for collecting an outstation
account of Bharat.
cheque.
(b) Goods bought on credit from Arun for Rs.1,150 were wrongly debited to his
(b) Rs. 25 has been credited by the Bank for half-yearly interest.
account as Rs.1,510.
(c) Two cheques of Rs. 1,300 and Rs. 250 paid in on 30th June have not been
(c) A Cash discount of Rs.30 allowed to Geeta remained unposed to her account
credited in the Book until 1st July.
in the Ledger from the Cash Book.
(d) Two cheques of Rs. 320 and Rs. 230 drawn in June have not been presented
(d) The Sales Book for the month was overcast by Rs.80.
at the Bank until 30th June.
(e) Rs.570 paid for repairs to building was debited to Building A/c as Rs.750.
Prepare a Bank Reconciliation statement.
[Suspense Account opened with a credit of Rs.6,190]
[Overdraft as per Cash Book: Rs.450]

Q-28: A book-keeper, on taking out a trial balance as on 31.03.2012, found that it

Q-19: From the following particulars prepare a Bank Reconciliation Statement
did not agree. He immediately proceeded to check the entries in the books and
showing the balance as per cash book on 31-12-2012 :
discovered the following errors :
(a) The bank balance as per Pass Book was Rs. 50,000 on 31st Dec. 2012.
(a) A cheque from Amit for Rs.850 had been correctly entered in Cash Book but
(b) The following cheques were paid into bank in Dec., 2012 but were credited by
had been posted to the credit of his as Rs.950.
bank in January 2013 : Sujata Rs. 2,500; Anita Rs. 1,500; Kavita Rs. 2,000.
(b) Goods returned to the firm by Rohit amounting to Rs.950 had been recorded in
(c) The following cheques were issued by the firm in Dec. 2012 but were presented
the Sales Returns Book but the entry had not been posted to the personal
in January, 2013 : Ajay Rs. 4,000; Bheem Rs. 4,500.
account.
(d) A cheque for Rs. 1,400 which was received from a customer was entered in
(c) A sale of Rs.1,450 to Rajesh had been correctly entered in the Sales Book but
the bank column of the cash book in December 2012 but was omitted to be
was posted as Rs.1,540.
banked.
(d) Kirti's bill for the erection of a godown at a cost of Rs.4,500 has been charged
(e) The pass book shows a debit balance of Rs. 120 for bank charges and a credit
to Repairs Account.
balance of Rs. 1,800 for interest.
(e) Goods of an invoice value of Rs.1,250 had been returned by Ekta and were
(f) Interest on investment Rs. 2,200 collected by bank appeared in the Pass
taken into stock but the returns had not been entered in the books.
Book.
Give rectifying Journal entries.
[Balance as per Cash Book: Rs.45,020]
18 Rectification of Errors
Q-22: Rectify the following errors :
(a) Wages paid for the construction of office debited to wages account Rs.1,000.
(b) Cartage paid for the newly purchased furniture Rs.250 posted to cartage
account.
(c) Furniture purchased on credit from Deepak for Rs.1,500 posted as Rs.1,050.
(d) Sales to Raj Rs.650 posted to Raju's account.
(e) Wages paid Rs.1,200 were recorded in the Cash Book as Rs.2,100.
Q-23: Rectify the following errors :
(a) Purchases from Manjeet Rs.1,900 were omitted from the books.
(b) A cheque for Rs.1,200 received from Nidhi was dishonored and had been
posted to the debit of Sales Returns Account.
(c) Purchases Book was overcast by Rs.90.
(d) A sale of Rs.230 to Joginder was credited to his account as Rs.310.
(e) A purchase of Rs.600 to Ram was entered in the day Book as Rs.60.
AoA
Q-24: Give Journal entries to rectify the following errors and find out the difference
in the trial balance.
(a) Sales Book was overcast by Rs.20.
(b) Purchased furniture Rs.320 was passed through invoice book and from there
‘Furniture Shop’ the supplier was posted as Rs.230.
(c) Sale of goods to Rajani Rs. 50 was posted as Rs.500.
(d) Purchases Returns Book was carried forward as Rs.570 instead of Rs.750.
(e) Sold goods Rs.520, entered in the Sales Book as Rs.250.
Q-25: The following mistakes were located in the books of a concern after its
books were closed and a Suspense Account was created in order to get the Trial
Balance agreed :
(a) Sales Day Book was undercast by Rs.90.
(b) A sale of Rs.350 to Anju was wrongly debited to the account of Anuj.
(c) General Expenses Rs.1,850 was posted in the Repairs A/c as Rs.185.
(d) Legal Expenses of Rs.1,000 paid to Mr. Vakeel was debited to his personal
account.
(e) Rs.2,100 paid to Deepa against our acceptance were debited to her Account.
Find out the nature and amount of the ‘Suspense Account’ and pass entries for the
rectification of the above errors in the subsequent year's books.
[Suspense Account opened with a debit of Rs.1575]
Q-26: There was an error in the Trial Balance of Reshma on 31st December 2012
and the difference in books was carried to Suspense Account. On going through
the books you find that :
(a) Rs.1,500 received from Manoj was posted to the debit side of his account.
(b) Rs.450 being purchase returns was posted to the debit of Purchases Account.
Practice in Accountancy 7
CA. Naresh Aggarwal’s
ACADEMY of ACCOUNTS
Accounting • Costing • Taxation • Financial Management
West Patel Nagar, New Delhi. Ph:8800215448. Website: www.academyofaccounts.org
Q-20: On 31st December 2012, the Cash Book of a merchant showed a Bank credit
balance of Rs. 700. On comparing the Cash Book with the Bank Pass Book the
following discrepancies were noted :
(a) Cheques issued for Rs. 400 were not presented in the bank till 7th January.
(b) Cheques amounting to Rs. 350 were deposited in the bank but were not
collected.
(c) A cheque of Rs. 250 received from Mahesh Chand and deposited in the bank
was dishonored before 31st December but not recorded in Cash Book.
(d) Rs. 1,200 being the proceeds of a bill receivable collected appear in the Pass
Book but not in the Cash Book.
(e) Bank charges Rs. 45 and interest on overdraft Rs. 65 appear in the Pass Book
but not in the Cash Book
Prepare a Bank Reconciliation Statement and show what balance the Bank Pass
Book would indicate on 31st December 2012.
[Balance as per Pass Book: Rs.190]
Q-21: On 30th June, 2012 a trader had an credit balance of Rs. 7,500 as shown by
the bank column of his Cash Book. When compared with Pass Book, the following
facts were discovered:
(a) Cheques amounting to Rs. 1,900 had been paid to the bank but of these only
Rs. 900 were credited in the Pass Book, up to the 30th June, 2012.
(b) He had also issued cheques amounting to Rs. 2,500, out of which only Rs.
1,350 worth cheques had been presented for payment.
(c) It was also found that a cheques for Rs. 600 which he had debited to bank
account was not sent to bank at all for collection through mistake.
(d) There is a debit in the Pass Book of Rs. 20 for Bank charges and Rs. 40 for
interest.
(e) A customer of the trader had paid directly into his bank Rs. 1,300 for credit of
his account, but it was not shown in the Cash Book.
(f) The Bank paid trader's insurance premium Rs. 450 as per instruction, but this
had not been recorded in the trader's Cash Book.
Prepare a Bank Reconciliation Statement on 30th June, 2012 and show the balance
the Bank Pass Book will indicate on that day.
[Overdraft as per Pass Book: Rs.7,160]
8 Bank Reconciliation Statement
Q-22: Prepare a Bank Reconciliation Statement from the following :
On 31st December 2012, a merchant's Cash Book showed a credit Bank balance for
Rs. 8,200 but due to the following-reasons the Pass Book showed a difference:
(a) A cheque of Rs. 720 issued to Dinesh has not been presented for payment.
(b) A post-dated cheque for Rs. 350 has been debited in the Bank column of the
Cash Book but under no circumstances it was possible to present it.
(c) Four cheques of Rs. 1,700 sent to the Bank have not been collected so far and
a cheque of Rs. 200 deposited in the Bank has been dishonoured.
(d) As per instructions, the Bank paid Rs. 550 as Fire Insurance premium but the
entry has not been made in the Cash Book.
(e) There was a debit in the Pass Book of Rs. 35 in respect of Bank charges and
a credit of Rs. 25 for interest on Current Account but not recorded in the Cash
Book.
[Overdraft as per Pass Book: Rs.10,290]
Q-23: Sohan & Co. find that the bank balance shown by their Cash Book on 31st
AoA
December 2012 is Rs. 2,000 (debit) but the Pass Book shows a difference due to
the following reasons :
(a) A cheque for Rs. 3,700 drawn in favor of Manohar has not yet been presented
for payment.
(b) A post-dated cheque for Rs. 1,200 has been debited in the bank column of the
Cash Book but it could not have been presented in any case.
(c) Cheques totalling Rs. 7,600 deposited with the Bank have not yet been collected
and a cheque for Rs. 3,000 has been dishonoured.
(d) A bill for Rs. 8,000 was retired by the Bank under a rebate of Rs. 200 but the
full amount of the bill was taken in the bank column of the Cash Book.
Prepare a Bank Reconciliation Statement and find out the balance as per
Pass Book.
[Overdraft as per Pass Book: Rs.5,900]
Q-24: On examining the Bank Pass Book of India Ltd. it is found that the balance
shown on 31st March 2012, the close of the company's financial year, differs from
the bank balance of Rs. 5,000 (credit) shown by the Cash Book on that date. From
a detailed comparison of the entries it is found that :
(a) Rs. 2,500 is entered in the Cash Book as paid into Bank on 31st March 2012,
but not credited by the bank until the following day.
(b) Bank charges Rs. 90 on 31st March 2012, are not entered in the Cash Book.
(c) A bill for Rs. 3,250 discounted with the Bank is entered in the Cash Book
without recording the discount charge of Rs. 250.
(d) Cheques totalling Rs. 15,000 were issued by the company and duly recorded
in the Cash Book before 31 st March 2012, but had not been presented at the
Bank for payment until after that.
(e) On 25th March 2012, a debtor directly paid Rs. 3,000 into the Company’s Bank
Practice in Accountancy 17
CA. Naresh Aggarwal’s
ACADEMY of ACCOUNTS
Accounting • Costing • Taxation • Financial Management
West Patel Nagar, New Delhi. Ph:8800215448. Website: www.academyofaccounts.org
(a) A credit sale of Rs.1,300 to Rajesh correctly entered in Sales Journal but posted
to his account as Rs.3,100.
(b) The total of Bills Payable Journal of Rs.750 has been posted to the debit of
Bills Payable A/c.
(c) The total of Purchase Journal of Rs.3,500 has been posted to Purchases
Account as Rs.350.
(d) Rent paid to Landlord Rs.1,000 was debited to his Personal Account.
(e) Purchases Book was undercast by Rs.20.
Q-19: Give Journal entries to rectify the following errors :
(a) Material from store Rs.2,000 and wages Rs.500 had been used in making
‘Tools’ for use in own factory but no adjustments were made in the books.
(b) Material from store Rs.1,600 and wages Rs.400 had been used in making
‘Furniture’ for use in own office but no adjustments were made in the books.
(c) Rs.2,700 paid to Sangeeta against our acceptance were debited to Sangeeta’s
personal account.
(d) Bill received from Jeewan for repairs done to Machinery Rs.250 and three
table fans supplied for Rs.1,750 was entered in the Invoice Book.
(e) The total of one page of the Sales Book was carried forward to the next page
as Rs.2,786 instead of Rs.2,687.
Q-20: Give Journal entries to rectify the following errors :
(a) Credit sale to Manjeet Rs.720 credited to his account as Rs.270.
(b) Credit purchase from Pramod Rs.230 recorded as Rs.320.
(c) Total of discount received column of the Cash Book was undercast by Rs.50.
(d) A credit purchase of goods of Rs.750 from Sanjeev posted as Rs.570.
(e) An addition in the Returns Inwards Day Book had been cast Rs.80 short.
Q-21: How would you rectify the following errors :
(a) The total of the Purchases Book has been undercast by Rs.40.
(b) A sum of Rs.450 written off as depreciation on machinery has been debited to
Machinery Account.
(c) A bill of Rs.2,550 for old furniture of the business sold to Chetali was entered
in the Purchases Day Book.
(d) Goods worth Rs.650 returned by Hemant have not been recorded anywhere.
(e) Rs.300 paid to Seeta posted to Geeta’s A/c.
16 Rectification of Errors
(d) Goods sold to Gautam were posted as Rs.215 instead of Rs.261.
(e) The Sales Book was overcast by Rs.50.
Q-13: Give Journal entries to rectify the following errors :
(a) The total of Purchases Book was short by Rs.100.
(b) The Sales Returns Book was overcast by Rs.220.
(c) The Sales Book for the month was overcast by Rs.80.
(d) Debit side of Ramesh added excess by Rs.180.
(e) Credit side of Sangeeta added short by Rs.50.
Q-14: How will you rectify the following errors:
(a) The total of Returns Inward Book was added Rs.100 instead of Rs.120.
(b) Sales Book was overcast by Rs.70.
(c) The total of Purchases Book was short by Rs.100.
(d) Rs.750 received from Raju are entered on the debit side of the Cash Book but
not posted in his A/c.
AoA
Q-15: The following errors are discovered in the books of Sh. Ram Lal. Make
necessary entries to rectify them :
(a) Discount allowed to Sohan of Rs.50 on his payment of Rs.4,450 has not been
entered in the discount column of the Cash Book. The credit to Sohan’s account
stands at Rs.4,500.
(b) Rs. 1,500 received from Keshav were debited to his account.
(c) An amount of Rs.1,050 for a credit sale to Mr. Goldy correctly entered in the
Sales Book, has been debited to his account as Rs.150.
(d) Sales of Rs.250 to Bheem debited to his account as Rs.2,050
(e) Purchases of Rs.1,010 from Sangeeta credited to her account as Rs.110.
Q-16: Rectify the following errors :
(a) Purchase from Mohan Rs.450 posted to his account as Rs.540.
(b) Purchase from Mohan Rs.450 credited to his account as Rs.540.
(c) Purchase from Mohan Rs.450 debited to his account as Rs.540.
(d) The total of Bills Receivable Book of Rs.250 has been posted to the credit of
Bills Receivable Account.
Q-17: Correct the following errors in Pooja’s Books of Accounts :
(a) The Returns Outward Journal has been overcast by Rs.30.
(b) A sum of Rs.750 written off as depreciation on furniture has not been debited
to Depreciation A/c.
(c) Baldev returned goods worth Rs.150 his account but wrongly he was debited
by this amount.
(d) A purchase from Mohan of Rs.1,250 has been debited to his account.
(e) A payment of Rs.1,500 for salaries been posted twice to Salaries Account.
Q-18: Correct the following errors in Mukesh’s Books of Accounts :
Practice in Accountancy 9
CA. Naresh Aggarwal’s
ACADEMY of ACCOUNTS
Accounting • Costing • Taxation • Financial Management
West Patel Nagar, New Delhi. Ph:8800215448. Website: www.academyofaccounts.org
Account, but no entry was made in the Cash Book.
(f) No entry has been made in the Cash Book to record the dishonor on 25th March,
2012, of a cheque for Rs. 1,000 received from Mr. Sharma.
Prepare a Reconciliation Statement as on 31st March 2012.
[Balance as per Pass Book: Rs.9,160]
Q-25: Prepare a Bank Reconciliation Statement from the following particulars :
(a) On 31st December 2012, Sunil had a debit balance of Rs. 1,250 as shown by
his Pass Book.
(b) He had issued cheques amounting to Rs. 750 of which Rs. 250 worth only
seem to have been presented for payment.
(c) Cheques amounting to Rs.500 have been paid in by him on the 30th Dec.
2012 but of these only Rs.350 were credited in the Pass Book.
(d) A cheque for Rs. 50 which he had debited to Bank Account in his Books has
been omitted to be banked.
(e) There is debit in his Pass Book of Rs. 40 for interest.
(f) An entry of Rs. 30 of a payment by a customer direct into the Bank appears in
the Pass Book.
(g) His Pass Book also shows a credit of Rs. 100 to his account, being interest on
his investments collected direct by my bankers.
[Overdraft as per Cash Book: Rs.1,640]
Q-26: On 31st December 2012, the Bank Pass Book of Shree Devi showed a debit
balance of Rs. 8,300. From the following particulars prepare a Bank Reconciliation
Statement :
(a) Cheques issued before 31-12-2012 but presented for payment after that date
amounted to Rs. 1,450.
(b) Cheques paid into the Bank but not collected and credited until 31-12-2012
amounted to Rs. 1,250.
(c) Interest on overdraft amounting to Rs. 300 did not appear in the Cash Book.
(d) Rs. 5,000 being interest on investments collected by the Bank.
(e) Bank charges of Rs. 150 were not entered in the Cash Book.
(f) Rs. 500 in respect of dishonoured cheque were entered in the Pass Book but
not in the Cash Book.
[Overdraft as per Cash Book: Rs.12,550]
10 Bank Reconciliation Statement
Q-27: Prepare Bank Reconciliation Statement on 31st December, 2012 from the
following particulars :
(a) Neeru’s overdraft as per Pass Book Rs. 7,500 as at 31st Dec.
(b) On 30th December, Cheques had been issued for Rs. 15,000 of which cheques
worth Rs. 3,000 only had been encashed up to 31st December.
(c) Cheques amounting to Rs. 5,500 had been paid into the bank for collection
but of these only Rs. 2,500 had been credited in the Pass Book.
(d) The Bank has charged Rs. 150 as interest on overdraft and the intimation of
which has been received on 2nd January 2013.
(e) The Bank Pass Book shows credit for Rs. 1,700 representing Rs. 400 paid by
debtor of Neeru direct into the Bank and Rs. 1,300 collected direct by Bank in
respect of interest on Neeru's investment. Neeru had no knowledge of these
items.
(f) A cheque for Rs. 800 has been debited in bank column of Cash Book by
Neeru, but it was not sent to Bank at all.
[Overdraft as per Cash Book: Rs.17,250]
AoA
Q-28: Prepare a Bank Reconciliation Statement from the following particulars and
show the balance as per Cash Book:
(a) Debit balance as per Pass Book on 31st December, 2012 Rs. 12,500.
(b) Cheques drawn in the last week of 2012 but not cleared till 3rd January, 2013
Rs. 3,000.
(c) Interest on Bank overdraft not entered in the Cash Book Rs. 750.
(d) Cheques of Rs. 12,000 lodged in the bank in December 2012 but not collected
and credited till 3rd January 2013.
(e) Rs. 700 Insurance Premium paid by the bank under a standing order has not
been entered in the Cash Book.
[Overdraft as per Cash Book: Rs.2,050]
Q-29: The Bank Pass Book of Hari showed an overdraft of Rs. 30,000 on 31st
March 2012. On going through the Pass Book the accountant found the following
(a) A cheque of Rs. 1,500 credited in the Pass Book on March 28, being
dishonoured is debited again in the Pass Book on 5th April 2012. There was
no entry in the Cash Book about the dishonor of the cheque until 16th April.
(b) Bankers had credited his account with Rs. 2,800 for interest collected by them
on his behalf, but the same had not been entered in his Cash Book,
(c) Out of Rs. 3,500 paid in by Hari in cash and by cheques on 31st March,
cheques amounting to Rs. 1,500 were collected on 7th April.
(d) Out of cheques amounting to Rs. 5,000 drawn by him on 27th March, a cheque
for Rs. 1,500 was encashed on 3rd April.
Prepare Bank Reconciliation Statement on March 31, 2012.
[Overdraft as per Cash Book: Rs.32,800]
Practice in Accountancy 15
CA. Naresh Aggarwal’s
ACADEMY of ACCOUNTS
Accounting • Costing • Taxation • Financial Management
West Patel Nagar, New Delhi. Ph:8800215448. Website: www.academyofaccounts.org
Bills Payable Day Book.
(f) Wages paid Rs.2,100 were recorded in the Cash Book as Rs.2,010.
Q-9: Give Journal entries to rectify the errors in the following cases
(a) A credit sale of goods of Rs.1,200 to Poonam has been wrongly passed through
the Purchases Book.
(b) A purchase return of goods to Ram for Rs.650 was passed through the Sales
Return Book.
(c) Goods returned by Monu Rs.120 were entered in the Returns Outwards Book.
(d) A purchase of goods from Dhananjay amounting to Rs.450 has been wrongly
passed through the Sales Book.
(e) Salary paid Rs. 3,500 were recorded in the Cash Book as Rs.3,050.
(f) A Bill Payable issued to Rohit Rs.2,300 was passed through Bills Receivable
Day Book.
Q-10: Rectify the following errors :
(a) A purchase of Rs.800 from Ranjana was omitted to be entered in the Purchases
Book.
(b) A credit sale of Rs.500 to M/s India & Co. was recorded as Rs.50.
(c) A purchase of office furniture for Rs.1,100 from ‘Furniture Mart’ was entered
through the Purchases Book.
(d) An invoice received from Ankit for Rs.1,400 was entered in the books as
Rs.140 only.
(e) A credit sale of goods Rs.350 to Ramesh has been wrongly passed through
the Purchases Book.
Q-11: Rectify the following errors:
(a) The Sales Book of December was added short by Rs.150.
(b) A periodical total of the Purchases Book was cast short by Rs.50
(c) The total of Purchases Returns Book has been undercast by Rs.300.
(d) The Sales Returns Book is added Rs.200 short.
Q-12: Rectify the following errors :
(a) The Returns Inward Book has been overcast by Rs.210.
(b) The Returns Outward Journal has been overcast by Rs.30.
(c) Purchases Book carried forward Rs.75 less.
14 Rectification of Errors Practice in Accountancy 11

(d) A sale of old machinery amounting to Rs. 1,650 has been credited to Sales Account.
(e) Salary Rs.800 paid to Sudhir was wrongly debited to his personal account. CA. Naresh Aggarwal’s

Q-5: The following errors were discovered from the books of Mr. Deepak :
ACADEMY of ACCOUNTS
(a) On 31st December 2012 goods of the value of Rs.300 were returned by Kavita Accounting • Costing • Taxation • Financial Management
and were taken into stock on the same date, but no entry was passed in the West Patel Nagar, New Delhi. Ph:8800215448. Website: www.academyofaccounts.org
books.
(b) An amount of Rs.250 due from Monika, which had been written off as bad debt
Q-30: Prepare Bank Reconciliation Statement on 31st October from the following
in a previous year, was unexpectedly recovered, and had been posted to the
Cash Book and Pass Book :
Personal account of Monika.
Cash Book
(c) New Machinery costing Rs.2,100 purchased during the year had been entered
(Bank Column only)
in the Purchases Book.
(d) Repairs to Plant, amounting to Rs.750 had been charged to Plant and Machinery Date Receipts Amount Date Payments Amount
Account.
Oct. 1 To Balance b/d 17,000 Oct. 3 By Neeru 2,000
(e) Rs.800 paid to Rajan posted to Rajani’s A/c.
Oct. 10 To Cash A/c 3,600 Oct. 5 By Vijay 1,600
Oct. 17 To Sumit 2,600 Oct. 8 By Deepak 2,400
Q-6: The following errors affecting the accounts for the year 2012 were detected in
Oct. 20 To Ravi 4,400 Oct. 16 By Cash A/c 4,000

AoA
the books of Mr. Shakti :
Oct. 28 To Sudha 3,200 Oct. 21 By Deepak 2,200
(a) Sale of old furniture for Rs.2,500 was treated as sale of goods.
Oct. 28 To Monika 3,000 Oct. 25 By Insurance A/c 2,800
(b) Rent of proprietor's residence Rs.1,500 was debited to Rent Account.
Oct. 30 By Mukesh 900
(c) Cash received from Ranjana Rs.2,100 was credited to Sanjana’s.
Oct. 31 By Furniture A/c 2,300
(d) Rs.1,700 spent for repairs of building has been debited to Building Account.
Oct. 31 By Balance c/d 15,600
(e) Furniture worth Rs.1,050 purchased from Nisarg on credit omitted to be
recorded in the books. 33,800 33,800
Nov. 1 To Balance b/d 15,600
Q-7: Give Journal entries to rectify the errors in the following cases :
(a) Rs.1,000 spent on repairs to the Building was debited to the Building Account.
Pass Book
(b) Legal Expenses of Rs.4,000 paid to Lawyer was debited to his personal A/c.
(c) Ravi’s bill for the erection of a godown at a cost of Rs.3,000 has been charged Date Particulars Withdrawal Deposits Balance
to Repairs Account. (Debit) (Credit)
(d) Goods of an invoice value of Rs.1,250 had been returned by Sunita and were
Oct. 1 By Balance - - 17,000 Cr.
taken into stock but the returns had not been entered in the books.
Oct. 5 To Neeru 2,000 15,000 Cr.
(e) Goods returned to Ajay were not entered in the books at all Rs.500.
Oct. 10 By Cash - 3,600 18,600 Cr.
Oct. 15 By Ravi - 4,400 23,000 Cr.
Q-8: Give Journal entries to rectify the errors in the following cases :
Oct. 16 To Vijay 1,600 - 21,400 Cr.
(a) A purchase of goods from Dinesh amounting to Rs.1,300 has been wrongly
Oct. 16 To Cash 4,000 - 17,400 Cr.
passed through the Sales Book.
Oct. 24 To Deepak 2,200 - 15,200 Cr.
(b) A credit sale of goods of Rs.1,250 to Anil has been wrongly passed through
Oct. 26 To Preeti 900 - 14,300 Cr.
the Purchases Book.
Oct. 28 By Anjali 2,900 17,200 Cr.
(c) A purchase return of goods to Ravi for Rs. 550 was passed through the Sales
Oct. 31 To Furniture Shop 2,300 - 14,900 Cr.
Return Book.
Oct. 31 To Electricity Bill 1,500 - 13,400 Cr.
(d) Goods returned by Meenu Rs.1,200 were entered in the Returns Outwards
Oct. 31 To Bank Charges 60 - 13,340 Cr.
Book.
Oct. 31 By Interest - 160 13,500 Cr.
(e) A Bill Receivable for Rs.1,150 received from Surender was passed through
12 Bank Reconciliation Statement Practice in Accountancy 13

Q-31: Prepare Bank Reconciliation Statement on 28th February from the following
Cash Book and Pass Book : CA. Naresh Aggarwal’s
Cash Book
(Bank Column only)
ACADEMY of ACCOUNTS
Accounting • Costing • Taxation • Financial Management
Date Receipts Amount Date Payments Amount
West Patel Nagar, New Delhi. Ph:8800215448. Website: www.academyofaccounts.org
Feb.1 To Balance b/d 9,500 Feb.4 By Nisha 1,200
Feb.5 To Shyam 2,400 Feb.6 By Cash A/c 2,000
Feb.10 To Hema 1,200 Feb.11 By Varun 2,200 Rectification of Errors
Feb.12 To Cash A/c 3,000 Feb.15 By Sumit 1,500
Feb.15 To Sanjeev 1,600 Feb.18 By Harmeet 1,400 Q-1: Give Journal entries to rectify the following errors :
Feb.28 To Mahesh 1,000 Feb.20 By Telephone Exp. 1,800 (a) A sum of Rs.2,500 paid by way of rent has been debited to landlord’s personal
Feb.27 By Computer A/c 5,000 account.
Feb.28 By Megha 1,100 (b) Furniture sold for Rs.1,800 has been posted to Sales Account.
Feb.28 By Balance c/d 2,500 (c) An amount of Rs.1,000 withdrawn by the proprietor for his personal use has
been debited to Trade Expenses Account.
18,700 18,700
(d) Rs.90 cost of repairing the floor of a room has been charged to Building

AoA
Mar. 1 To Balance b/d 2,500 Account.
(e) Goods worth Rs.300 withdrawn by the proprietor have not been recorded in
Pass Book books.
Date Particulars Withdrawal Deposits Balance
(Debit) (Credit) Q-2: Rectify the following errors :
(a) Paid wages for the construction of office debited to wages account Rs.1,500.
Feb.1 By Balance - - 9,500 Cr. (b) Paid Cartage to newly purchased furniture Rs.50 posted to cartage account.
Feb.5 To Nisha 1,200 8,300 Cr. (c) Paid Rs.1,000 for the newly purchased table fan posted to purchases account.
Feb.6 To Cash 2,000 - 6,300 Cr. (d) A sale of furniture of Rs.400 had been credited to sales account
Feb.8 By Shyam - 2,400 8,700 Cr. (e) Rs.1,800 paid as rent to landlord was debited to Landlord’s Account.
Feb.10 By Meera 1,500 10,200 Cr. (f) Rs.2,900 paid for repairs done to the Machine were debited to Machinery A/c.
Feb.12 By Cash - 3,000 13,200 Cr.
Feb.18 To Sumit 1,500 - 11,700 Cr. Q-3: Rectify the following errors
Feb.20 To Harmeet 1,400 - 10,300 Cr. (a) Wages paid for construction of building was debited to Wages A/c with Rs.6,500.
Feb.22 To Radha 1,600 - 8,700 Cr. (b) Expenses of erection of shed was debited to trade expenses account
Feb.23 By Sanjeev 1,600 10,300 Cr. amounting to Rs.3,500.
Feb.23 By Hema - 1,200 11,500 Cr. (c) Wages paid for extension building was debited to wages account amounting
Feb.25 To Telephone Nigam 1,800 - 9,700 Cr. to Rs.2,000.
Feb.28 To M/s Computer World 5,000 - 4,700 Cr. (d) Furniture purchased on credit from Rajan for Rs.1,200 was entered in the
Feb.28 To Bank Charges 100 - 4,600 Cr. Purchases Book.
Feb.28 By Interest - 50 4,650 Cr. (e) Rs.2,500 spent on the extension of Buildings was debited to Repairs Account.

Q-4: Rectify the following errors :

(a) Wages paid for the construction of office debited to wages account Rs.3,700.
•••••••••••••••••••••• (b) Machinery purchased for Rs.5,100 was passed through the invoice book.
(c) Old furniture sold for Rs.900 passed through the day book.