Vimal of Kanpur consigned to his agent Nirmal of Allahabad 100 machines at Rs. 500 each. He paid the following expenses-packing charges Rs. 20 per machine, forwarding charges
Rs. 400 and freight Rs. 600
Nirmal received the consignment and paid Rs. 600 for cartage and octroi. He also paid Rs. 500 for godown charges. He sold 60 machines @ 700 per machine. He was entitled to a
commission of 6%. Profit on consignment will be
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Solution
Consignment is the act of consigning, which is placing any material in the hand of another, but retaining ownership until the goods are sold or person is transferred.
Bank overdraft as per cash book on 31st Dec. 2010 Rs. 10,500
Cheque sent for collection but not collected Rs. 8,250
Cheque issued but not presented for payment Rs. 12,000
Balance as per pass book overdraft will be
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Solution
A Bank reconciliation is a process that explains the difference between the bank balance shown in an organisation’s bank statement, as supplied by the bank, and the corresponding amount shown in the organization’s own accounting records at a particular point in time.
Such differences may occur, for example, because a cheque or a list of cheques issued by the organization has not been presented to the bank, a banking transaction, such as a credit received, or a charge made by the bank, has not yet been recorded in the organisation’s books, or either the bank or the organization itself has made an error.
Balance as per Cash Book on 31.03.2010 Rs. 10,000
Cheque issued and presented on 4th April Rs. 2,300
Cheque sent to bank but not credited Rs. 2,000
B/P paid by Bank not entered in cash Book Rs. 800
Balance on per pass book will be
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Solution
Sita and Gita are partnes haring profits and losses in the ratio of 3:2 having the capital of Rs. 80,000 and Rs. 50,000 respectively. They are entitled to 9% p.a. interest on capital before distributing the profits. During the year firm earned Rs. 7,800 after allowing interest on capital. Profits apportioned among Sita and Gita is:
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Solution
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Solution
Miscellaneous expenses should come on debit side instead of credit side. so the difference in trial balance is due to wrong placing of this account.
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Solution
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Solution
Loan A/c credit balance on Dec. 31, 2009 15,000
Loan paid on June 30, 2009 4,000
Loan paid on Sept. 30, 2009 5,000
Interest on loan is to be charged 9% p.a.
Interest amount for the year 2009 will be
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Solution
