Bank Reconciliation Statement Test - 6

Stock will decrease by the cost of goods sold i.e Rs 15000/- and not the sale price.

Cash received is total of cost + profit i.e. 15000 + profit (20%) 3000  =  18000/-

As goods are sold for Rs 18000 , so we will receive cash worth Rs 18000/-.

Assets= Capital + Liabilities

500000= Capital + 50000

Therefore capital should be = 500000-50000 = Rs 450000

Closing capital = opening capital+ revenue - expenses

 450000  = 200000+500000-Expenses

Expeses = 700000 - 450000 = Rs 250000/-

We will decrease stock by the amount of cost of goods sold which is Rs 20000/- and not the sale price because in our stock goods worth Rs 20000/- are sold.

Amount spent by peety cashier is (100+12+40+80+90+80)= Rs 402

Imprest money is                                                        = Rs 500

Cah balance is (500-402)                                               = Rs  98/-

As the transaction says full settlement it means kamal is not going to pay us in future. Rs 200 is given as discount to kamal so kamal's account should not appear in the books of accounts so we credit kamal's a/c by Rs 4000/-.

As Bad debt recovered is profit for the business and it has already been written off earlier, also cash is also received so Cash account is debited and bad debts recovered account is credited. so the above entry is correct.

Total Purchases Penciles :  25*30         =   750

                     Ball Pens :   10*12*20    =  2400

                      Total                            = 3150

  Less: Trade Discount 10%                 = (315)

        Net Purchases                          =  2835

Total purchases :                       5*30 = 150

Less Trade discount (10%) :                (15)      

Net amount                                              135/-

We deduct trade discount in order to arrive at purchase return amount  from the total purchases.

Amount of sales return: Tables:   750/-

                                           Chairs:  1000 

      Total Return                               1750

Less : Discount                               (175)

                          Net Amount           1575/-

As we have received the goods after trade discount, so we will return reversing trade discount.