What does it mean by creation of credit and cheque system of payment funds?

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What does it mean by creation of credit and cheque system of payment funds?

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Study the following hypothetical transactional detail of Mr. Keshav and answer the given questions:On 31st March, 2019 the bank column of the Cash Book of Mr. Keshav disclosed an overdraft balance of ₹8,300. On examining the cash book and bank statement you find that:• Cheques were deposited into the bank for ₹16,000 but of these cheques for ₹4,600 were cleared and credited in April 2015.• Cheques were issued for ₹7,500 out of which cheques for ₹6,000 had been presented for payment in March 2019.• In March Mr. Keshav had discounted with a bank a bill of exchange for ₹10,000 and had entered this amount in the Cash Book, but the proceeds credited as shown by the Passbook, amounted to ₹9,600.• No entry is made in the Cash Book of an amount of ₹6,100 directly deposited by a customer in the bank accounts.• Bank Column of the payment side of the Cash Book was undercast by ₹1,000.• Payment of Insurance premium of ₹2,000 and receipt of insurance claim of ₹8,000 appear in the Passbook but not entered in the Cash Book.• A cheque for ₹3,500 issued to Mr. Kapil was omitted to be recorded in the Cash Book.• A cheque for ₹2,800 issued to Mr. Darshan was entered in the cash column of the Cash Book.The amount not entered in the cash book as it was directly deposited in the bank by a customer will be recorded as a ________ item in the bank reconciliation statement.

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6. Give journal entries for the following: 2017 January 1 Sold goods for 10,000 on credit to Kabil. January 5 Kabil paid at 10% discount by cheque. January 7 Cheque received from Kabil was sent to bank for collection. (Hint - When cheque is not deposited in the bank on same day, Cheque in Hand Al is debited instead of Bank A/ c)?

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Ram started business with cash 1000 and goods worth 5000.he deposited into bank 9000.brought goods from Mohan on credit 10%trade discount worth2500. Mohan was paid by cheque2000 and balanced in cash.sold good on credit to bharti 1000.recived,cheque from bharti 980 and discount allowed 20. the cheque was deposited into bank same date.paid shop rent 500.withdrew for personal use.please give me this answer?

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Study the following hypothetical transactional detail of Mr. Keshav and answer the given questions:On 31st March, 2019 the bank column of the Cash Book of Mr. Keshav disclosed an overdraft balance of ₹8,300. On examining the cash book and bank statement you find that:• Cheques were deposited into the bank for ₹16,000 but of these cheques for ₹4,600 were cleared and credited in April 2015.• Cheques were issued for ₹7,500 out of which cheques for ₹6,000 had been presented for payment in March 2019.• In March Mr. Keshav had discounted with a bank a bill of exchange for ₹10,000 and had entered this amount in the Cash Book, but the proceeds credited as shown by the Passbook, amounted to ₹9,600.• No entry is made in the Cash Book of an amount of ₹6,100 directly deposited by a customer in the bank accounts.• Bank Column of the payment side of the Cash Book was undercast by ₹1,000.• Payment of Insurance premium of ₹2,000 and receipt of insurance claim of ₹8,000 appear in the Passbook but not entered in the Cash Book.• A cheque for ₹3,500 issued to Mr. Kapil was omitted to be recorded in the Cash Book.• A cheque for ₹2,800 issued to Mr. Darshan was entered in the cash column of the Cash Book.Which of the following amount will be shown in the plus item column of the bank reconciliation statement with regard to the cheques that were issued but not presented to the bank?

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Record journal entries for Soraj Mart that furnishes the following information for the month of April, 2017: DateDetails01.4.2017Business started with cash INR 1,50,000.01.4.2017Goods purchased from Manisha INR 36,00001.4.2017Stationery purchased for cash INR 2,20002.4.2017Goods sold to Priya for INR 16,00003.4.2017Received a cheque of INR 16,000 from Priya05.4.2017Sold goods to Nidhi INR 14,000.-08.4.2017Nidhi pays INR 14,000 cash.10.4.2017Purchased goods for INR 20,000 on credit from Ritu.14.4.2017Insurance paid by cheque INR 6,000.18.4.2017Paid rent INR 2,000.24.4.2017Purchased office furniture for INR 11,200.29.4.2017Cash withdrawn for household purposes INR 5000.30.4.2017Interest received cash INR 1,200.30.4.2017Cash sales INR 2,300.30.4.2017Commission paid INR 3,000 by cehque.30.4.2017Telephone bill paid by cheque INR 2,000.30.4.2017Payment of salaries in cash INR 12,000.- Related: Introduction to Accounting?

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