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Read the following hypothetical Case Study and answer the given questions:
The cash book of Ramesh showed the cash balance of ₹15,000 and a bank balance of ₹25,000 as on 30th April 2019. On the 1st of May, he purchased goods from Ramesh worth ₹12,000 and paid it by cheque. He sold goods on 3rd of May for cash and deposited the proceeds into a bank worth ₹10,000. On the 14th of May, he paid the electricity bill by cheque worth ₹9,000. On the 15th of May from Rashi, he purchased goods worth ₹10,000 at a discount of 20% and sold it to Juhi at a profit of 25%. Both the transactions were on credit. On the 26th of May, he withdrew ₹5,000 for office use. On 29th May, he received 70% of the cash from Juhi and paid 50% of it to Rashi and deposited the remaining in the bank. He also paid ₹1,500 as salaries to his employee on 31st of May. He also had the following transactions:
• He received a telephone bill worth ₹500.
• He withdrew ₹2,500 for his personal use.
• He gave ₹500 from for the cash register to his nephew as a gift.
• Goods worth ₹2,000 were lost due to damages
There will be a contra entry for the transaction on which date?
- a)3rd of May
- b)15th of May
- c)29th of May
- d)31st of May
Correct answer is option 'A'. Can you explain this answer?
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Verified Answer
Read the following hypothetical Case Study and answer the given questi...
There will be a contra entry for the transaction on 3rd of May because A contra entry is recorded when the debit and credit affect the same parent account and resulting in a net zero effect to the account. These are transactions that are recorded between cash and bank accounts.
Most Upvoted Answer
Read the following hypothetical Case Study and answer the given questi...
Contra Entry Transaction:
Contra entry refers to a transaction where both cash and bank accounts are involved simultaneously. In this case study, the contra entry transaction occurred on the 3rd of May.
Explanation:
- On the 3rd of May, Ramesh sold goods for cash and deposited the proceeds into the bank. This transaction involves both cash (received from the sale) and bank (depositing the cash into the bank account) accounts.
- The cash received from the sale of goods is deposited into the bank account, representing a contra entry where both cash and bank accounts are affected simultaneously.
- This transaction is a classic example of a contra entry, as it involves the movement of funds between the cash and bank accounts within the same business entity.
Therefore, the correct answer is option 'a) 3rd of May', as this is the date on which the contra entry transaction took place in the case study provided.
Contra entry refers to a transaction where both cash and bank accounts are involved simultaneously. In this case study, the contra entry transaction occurred on the 3rd of May.
Explanation:
- On the 3rd of May, Ramesh sold goods for cash and deposited the proceeds into the bank. This transaction involves both cash (received from the sale) and bank (depositing the cash into the bank account) accounts.
- The cash received from the sale of goods is deposited into the bank account, representing a contra entry where both cash and bank accounts are affected simultaneously.
- This transaction is a classic example of a contra entry, as it involves the movement of funds between the cash and bank accounts within the same business entity.
Therefore, the correct answer is option 'a) 3rd of May', as this is the date on which the contra entry transaction took place in the case study provided.
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Read the following hypothetical Case Study and answer the given questions:The cash book of Ramesh showed the cash balance of 15,000 and a bank balance of 25,000 as on 30th April 2019. On the 1st of May, he purchased goods from Ramesh worth 12,000 and paid it by cheque. He sold goods on 3rd of May for cash and deposited the proceeds into a bank worth 10,000. On the 14th of May, he paid the electricity bill by cheque worth 9,000. On the 15th of May from Rashi, he purchased goods worth 10,000 at a discount of 20% and sold it to Juhi at a profit of 25%. Both the transactions were on credit. On the 26th of May, he withdrew 5,000 for office use. On 29th May, he received 70% of the cash from Juhi and paid 50% of it to Rashi and deposited the remaining in the bank. He also paid 1,500 as salaries to his employee on 31st of May. He also had the following transactions:• He received a telephone bill worth 500.• He withdrew 2,500 for his personal use.• He gave 500 from for the cash register to his nephew as a gift.• Goods worth 2,000 were lost due to damagesThere will be a contra entry for the transaction on which date?a)3rd of Mayb)15th of Mayc)29th of Mayd)31st of MayCorrect answer is option 'A'. Can you explain this answer?
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Read the following hypothetical Case Study and answer the given questions:The cash book of Ramesh showed the cash balance of 15,000 and a bank balance of 25,000 as on 30th April 2019. On the 1st of May, he purchased goods from Ramesh worth 12,000 and paid it by cheque. He sold goods on 3rd of May for cash and deposited the proceeds into a bank worth 10,000. On the 14th of May, he paid the electricity bill by cheque worth 9,000. On the 15th of May from Rashi, he purchased goods worth 10,000 at a discount of 20% and sold it to Juhi at a profit of 25%. Both the transactions were on credit. On the 26th of May, he withdrew 5,000 for office use. On 29th May, he received 70% of the cash from Juhi and paid 50% of it to Rashi and deposited the remaining in the bank. He also paid 1,500 as salaries to his employee on 31st of May. He also had the following transactions:• He received a telephone bill worth 500.• He withdrew 2,500 for his personal use.• He gave 500 from for the cash register to his nephew as a gift.• Goods worth 2,000 were lost due to damagesThere will be a contra entry for the transaction on which date?a)3rd of Mayb)15th of Mayc)29th of Mayd)31st of MayCorrect answer is option 'A'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Read the following hypothetical Case Study and answer the given questions:The cash book of Ramesh showed the cash balance of 15,000 and a bank balance of 25,000 as on 30th April 2019. On the 1st of May, he purchased goods from Ramesh worth 12,000 and paid it by cheque. He sold goods on 3rd of May for cash and deposited the proceeds into a bank worth 10,000. On the 14th of May, he paid the electricity bill by cheque worth 9,000. On the 15th of May from Rashi, he purchased goods worth 10,000 at a discount of 20% and sold it to Juhi at a profit of 25%. Both the transactions were on credit. On the 26th of May, he withdrew 5,000 for office use. On 29th May, he received 70% of the cash from Juhi and paid 50% of it to Rashi and deposited the remaining in the bank. He also paid 1,500 as salaries to his employee on 31st of May. He also had the following transactions:• He received a telephone bill worth 500.• He withdrew 2,500 for his personal use.• He gave 500 from for the cash register to his nephew as a gift.• Goods worth 2,000 were lost due to damagesThere will be a contra entry for the transaction on which date?a)3rd of Mayb)15th of Mayc)29th of Mayd)31st of MayCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Read the following hypothetical Case Study and answer the given questions:The cash book of Ramesh showed the cash balance of 15,000 and a bank balance of 25,000 as on 30th April 2019. On the 1st of May, he purchased goods from Ramesh worth 12,000 and paid it by cheque. He sold goods on 3rd of May for cash and deposited the proceeds into a bank worth 10,000. On the 14th of May, he paid the electricity bill by cheque worth 9,000. On the 15th of May from Rashi, he purchased goods worth 10,000 at a discount of 20% and sold it to Juhi at a profit of 25%. Both the transactions were on credit. On the 26th of May, he withdrew 5,000 for office use. On 29th May, he received 70% of the cash from Juhi and paid 50% of it to Rashi and deposited the remaining in the bank. He also paid 1,500 as salaries to his employee on 31st of May. He also had the following transactions:• He received a telephone bill worth 500.• He withdrew 2,500 for his personal use.• He gave 500 from for the cash register to his nephew as a gift.• Goods worth 2,000 were lost due to damagesThere will be a contra entry for the transaction on which date?a)3rd of Mayb)15th of Mayc)29th of Mayd)31st of MayCorrect answer is option 'A'. Can you explain this answer?.
Read the following hypothetical Case Study and answer the given questions:The cash book of Ramesh showed the cash balance of 15,000 and a bank balance of 25,000 as on 30th April 2019. On the 1st of May, he purchased goods from Ramesh worth 12,000 and paid it by cheque. He sold goods on 3rd of May for cash and deposited the proceeds into a bank worth 10,000. On the 14th of May, he paid the electricity bill by cheque worth 9,000. On the 15th of May from Rashi, he purchased goods worth 10,000 at a discount of 20% and sold it to Juhi at a profit of 25%. Both the transactions were on credit. On the 26th of May, he withdrew 5,000 for office use. On 29th May, he received 70% of the cash from Juhi and paid 50% of it to Rashi and deposited the remaining in the bank. He also paid 1,500 as salaries to his employee on 31st of May. He also had the following transactions:• He received a telephone bill worth 500.• He withdrew 2,500 for his personal use.• He gave 500 from for the cash register to his nephew as a gift.• Goods worth 2,000 were lost due to damagesThere will be a contra entry for the transaction on which date?a)3rd of Mayb)15th of Mayc)29th of Mayd)31st of MayCorrect answer is option 'A'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Read the following hypothetical Case Study and answer the given questions:The cash book of Ramesh showed the cash balance of 15,000 and a bank balance of 25,000 as on 30th April 2019. On the 1st of May, he purchased goods from Ramesh worth 12,000 and paid it by cheque. He sold goods on 3rd of May for cash and deposited the proceeds into a bank worth 10,000. On the 14th of May, he paid the electricity bill by cheque worth 9,000. On the 15th of May from Rashi, he purchased goods worth 10,000 at a discount of 20% and sold it to Juhi at a profit of 25%. Both the transactions were on credit. On the 26th of May, he withdrew 5,000 for office use. On 29th May, he received 70% of the cash from Juhi and paid 50% of it to Rashi and deposited the remaining in the bank. He also paid 1,500 as salaries to his employee on 31st of May. He also had the following transactions:• He received a telephone bill worth 500.• He withdrew 2,500 for his personal use.• He gave 500 from for the cash register to his nephew as a gift.• Goods worth 2,000 were lost due to damagesThere will be a contra entry for the transaction on which date?a)3rd of Mayb)15th of Mayc)29th of Mayd)31st of MayCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Read the following hypothetical Case Study and answer the given questions:The cash book of Ramesh showed the cash balance of 15,000 and a bank balance of 25,000 as on 30th April 2019. On the 1st of May, he purchased goods from Ramesh worth 12,000 and paid it by cheque. He sold goods on 3rd of May for cash and deposited the proceeds into a bank worth 10,000. On the 14th of May, he paid the electricity bill by cheque worth 9,000. On the 15th of May from Rashi, he purchased goods worth 10,000 at a discount of 20% and sold it to Juhi at a profit of 25%. Both the transactions were on credit. On the 26th of May, he withdrew 5,000 for office use. On 29th May, he received 70% of the cash from Juhi and paid 50% of it to Rashi and deposited the remaining in the bank. He also paid 1,500 as salaries to his employee on 31st of May. He also had the following transactions:• He received a telephone bill worth 500.• He withdrew 2,500 for his personal use.• He gave 500 from for the cash register to his nephew as a gift.• Goods worth 2,000 were lost due to damagesThere will be a contra entry for the transaction on which date?a)3rd of Mayb)15th of Mayc)29th of Mayd)31st of MayCorrect answer is option 'A'. Can you explain this answer?.
Solutions for Read the following hypothetical Case Study and answer the given questions:The cash book of Ramesh showed the cash balance of 15,000 and a bank balance of 25,000 as on 30th April 2019. On the 1st of May, he purchased goods from Ramesh worth 12,000 and paid it by cheque. He sold goods on 3rd of May for cash and deposited the proceeds into a bank worth 10,000. On the 14th of May, he paid the electricity bill by cheque worth 9,000. On the 15th of May from Rashi, he purchased goods worth 10,000 at a discount of 20% and sold it to Juhi at a profit of 25%. Both the transactions were on credit. On the 26th of May, he withdrew 5,000 for office use. On 29th May, he received 70% of the cash from Juhi and paid 50% of it to Rashi and deposited the remaining in the bank. He also paid 1,500 as salaries to his employee on 31st of May. He also had the following transactions:• He received a telephone bill worth 500.• He withdrew 2,500 for his personal use.• He gave 500 from for the cash register to his nephew as a gift.• Goods worth 2,000 were lost due to damagesThere will be a contra entry for the transaction on which date?a)3rd of Mayb)15th of Mayc)29th of Mayd)31st of MayCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
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Read the following hypothetical Case Study and answer the given questions:The cash book of Ramesh showed the cash balance of 15,000 and a bank balance of 25,000 as on 30th April 2019. On the 1st of May, he purchased goods from Ramesh worth 12,000 and paid it by cheque. He sold goods on 3rd of May for cash and deposited the proceeds into a bank worth 10,000. On the 14th of May, he paid the electricity bill by cheque worth 9,000. On the 15th of May from Rashi, he purchased goods worth 10,000 at a discount of 20% and sold it to Juhi at a profit of 25%. Both the transactions were on credit. On the 26th of May, he withdrew 5,000 for office use. On 29th May, he received 70% of the cash from Juhi and paid 50% of it to Rashi and deposited the remaining in the bank. He also paid 1,500 as salaries to his employee on 31st of May. He also had the following transactions:• He received a telephone bill worth 500.• He withdrew 2,500 for his personal use.• He gave 500 from for the cash register to his nephew as a gift.• Goods worth 2,000 were lost due to damagesThere will be a contra entry for the transaction on which date?a)3rd of Mayb)15th of Mayc)29th of Mayd)31st of MayCorrect answer is option 'A'. Can you explain this answer?, a detailed solution for Read the following hypothetical Case Study and answer the given questions:The cash book of Ramesh showed the cash balance of 15,000 and a bank balance of 25,000 as on 30th April 2019. On the 1st of May, he purchased goods from Ramesh worth 12,000 and paid it by cheque. He sold goods on 3rd of May for cash and deposited the proceeds into a bank worth 10,000. On the 14th of May, he paid the electricity bill by cheque worth 9,000. On the 15th of May from Rashi, he purchased goods worth 10,000 at a discount of 20% and sold it to Juhi at a profit of 25%. Both the transactions were on credit. On the 26th of May, he withdrew 5,000 for office use. On 29th May, he received 70% of the cash from Juhi and paid 50% of it to Rashi and deposited the remaining in the bank. He also paid 1,500 as salaries to his employee on 31st of May. He also had the following transactions:• He received a telephone bill worth 500.• He withdrew 2,500 for his personal use.• He gave 500 from for the cash register to his nephew as a gift.• Goods worth 2,000 were lost due to damagesThere will be a contra entry for the transaction on which date?a)3rd of Mayb)15th of Mayc)29th of Mayd)31st of MayCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of Read the following hypothetical Case Study and answer the given questions:The cash book of Ramesh showed the cash balance of 15,000 and a bank balance of 25,000 as on 30th April 2019. On the 1st of May, he purchased goods from Ramesh worth 12,000 and paid it by cheque. He sold goods on 3rd of May for cash and deposited the proceeds into a bank worth 10,000. On the 14th of May, he paid the electricity bill by cheque worth 9,000. On the 15th of May from Rashi, he purchased goods worth 10,000 at a discount of 20% and sold it to Juhi at a profit of 25%. Both the transactions were on credit. On the 26th of May, he withdrew 5,000 for office use. On 29th May, he received 70% of the cash from Juhi and paid 50% of it to Rashi and deposited the remaining in the bank. He also paid 1,500 as salaries to his employee on 31st of May. He also had the following transactions:• He received a telephone bill worth 500.• He withdrew 2,500 for his personal use.• He gave 500 from for the cash register to his nephew as a gift.• Goods worth 2,000 were lost due to damagesThere will be a contra entry for the transaction on which date?a)3rd of Mayb)15th of Mayc)29th of Mayd)31st of MayCorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Read the following hypothetical Case Study and answer the given questions:The cash book of Ramesh showed the cash balance of 15,000 and a bank balance of 25,000 as on 30th April 2019. On the 1st of May, he purchased goods from Ramesh worth 12,000 and paid it by cheque. He sold goods on 3rd of May for cash and deposited the proceeds into a bank worth 10,000. On the 14th of May, he paid the electricity bill by cheque worth 9,000. On the 15th of May from Rashi, he purchased goods worth 10,000 at a discount of 20% and sold it to Juhi at a profit of 25%. Both the transactions were on credit. On the 26th of May, he withdrew 5,000 for office use. On 29th May, he received 70% of the cash from Juhi and paid 50% of it to Rashi and deposited the remaining in the bank. He also paid 1,500 as salaries to his employee on 31st of May. He also had the following transactions:• He received a telephone bill worth 500.• He withdrew 2,500 for his personal use.• He gave 500 from for the cash register to his nephew as a gift.• Goods worth 2,000 were lost due to damagesThere will be a contra entry for the transaction on which date?a)3rd of Mayb)15th of Mayc)29th of Mayd)31st of MayCorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice Commerce tests.
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