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A business man's cash book shows 10000 rs.bank overdraft. 540 cheque given to mohan but not yet presented 300 with future date,was debited in cashbook but not sent to bank Rs.400 cheque sent for collection but dishonoured Bank paid a bill payable rs.2000 after discount of rs.50 but in cashbook recorded with deducting discount Cheque of rs.54 deposited in Bank and credited in passbook but in cashbook it was recorded as rs.45 Bank received rs.500profits that was not recorded in cashbook?
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A business man's cash book shows 10000 rs.bank overdraft. 540 cheque g...
Cash Book Discrepancies and their Explanation
1. Bank Overdraft of Rs.10,000
- A bank overdraft of Rs.10,000 indicates that the business has withdrawn more money from the bank account than the available balance.
- It is recorded as a negative balance in the cash book because it represents the amount owed to the bank.
2. Cheque of Rs.540 Given to Mohan
- The cheque given to Mohan for Rs.540 is yet to be presented to the bank.
- It is recorded in the cash book as an outgoing payment to Mohan, reducing the cash balance.
3. Cheque of Rs.300 with Future Date
- A cheque with a future date of payment is recorded in the cash book as a payment made.
- However, since the cheque is not yet presented to the bank, the bank balance remains unaffected.
4. Dishonored Cheque of Rs.400
- The cheque sent for collection amounting to Rs.400 was dishonored by the bank.
- This means that the bank did not honor the payment from the drawer's account.
- It is recorded in the cash book as a reduction in the cash balance since the payment was not received.
5. Bank Paid a Bill Payable of Rs.2,000 after a Discount of Rs.50
- The bank paid a bill payable on behalf of the business, amounting to Rs.2,000.
- The bill was settled at a discounted price of Rs.1,950 (Rs.2,000 - Rs.50 discount).
- However, in the cash book, the entry was recorded without deducting the discount, resulting in an overstatement of expenses.
6. Cheque of Rs.54 Deposited in Bank, but Recorded as Rs.45 in Cash Book
- A cheque of Rs.54 was deposited in the bank account.
- The bank credited the correct amount of Rs.54 in the passbook.
- However, in the cash book, the entry was recorded as Rs.45, leading to a discrepancy between the cash book and the passbook.
7. Bank Received Rs.500 Profits
- The bank received a profit amount of Rs.500 on behalf of the business.
- However, this profit was not recorded in the cash book, leading to an understatement of the cash balance.
In conclusion, the discrepancies in the cash book arise from errors in recording transactions, dishonored cheques, and failure to record certain transactions like discounts and profits received by the bank. It is important for the business to reconcile the cash book with the passbook regularly to identify and rectify such discrepancies.
1. Bank Overdraft of Rs.10,000
- A bank overdraft of Rs.10,000 indicates that the business has withdrawn more money from the bank account than the available balance.
- It is recorded as a negative balance in the cash book because it represents the amount owed to the bank.
2. Cheque of Rs.540 Given to Mohan
- The cheque given to Mohan for Rs.540 is yet to be presented to the bank.
- It is recorded in the cash book as an outgoing payment to Mohan, reducing the cash balance.
3. Cheque of Rs.300 with Future Date
- A cheque with a future date of payment is recorded in the cash book as a payment made.
- However, since the cheque is not yet presented to the bank, the bank balance remains unaffected.
4. Dishonored Cheque of Rs.400
- The cheque sent for collection amounting to Rs.400 was dishonored by the bank.
- This means that the bank did not honor the payment from the drawer's account.
- It is recorded in the cash book as a reduction in the cash balance since the payment was not received.
5. Bank Paid a Bill Payable of Rs.2,000 after a Discount of Rs.50
- The bank paid a bill payable on behalf of the business, amounting to Rs.2,000.
- The bill was settled at a discounted price of Rs.1,950 (Rs.2,000 - Rs.50 discount).
- However, in the cash book, the entry was recorded without deducting the discount, resulting in an overstatement of expenses.
6. Cheque of Rs.54 Deposited in Bank, but Recorded as Rs.45 in Cash Book
- A cheque of Rs.54 was deposited in the bank account.
- The bank credited the correct amount of Rs.54 in the passbook.
- However, in the cash book, the entry was recorded as Rs.45, leading to a discrepancy between the cash book and the passbook.
7. Bank Received Rs.500 Profits
- The bank received a profit amount of Rs.500 on behalf of the business.
- However, this profit was not recorded in the cash book, leading to an understatement of the cash balance.
In conclusion, the discrepancies in the cash book arise from errors in recording transactions, dishonored cheques, and failure to record certain transactions like discounts and profits received by the bank. It is important for the business to reconcile the cash book with the passbook regularly to identify and rectify such discrepancies.
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A business man's cash book shows 10000 rs.bank overdraft. 540 cheque given to mohan but not yet presented 300 with future date,was debited in cashbook but not sent to bank Rs.400 cheque sent for collection but dishonoured Bank paid a bill payable rs.2000 after discount of rs.50 but in cashbook recorded with deducting discount Cheque of rs.54 deposited in Bank and credited in passbook but in cashbook it was recorded as rs.45 Bank received rs.500profits that was not recorded in cashbook?
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A business man's cash book shows 10000 rs.bank overdraft. 540 cheque given to mohan but not yet presented 300 with future date,was debited in cashbook but not sent to bank Rs.400 cheque sent for collection but dishonoured Bank paid a bill payable rs.2000 after discount of rs.50 but in cashbook recorded with deducting discount Cheque of rs.54 deposited in Bank and credited in passbook but in cashbook it was recorded as rs.45 Bank received rs.500profits that was not recorded in cashbook? for Class 11 2024 is part of Class 11 preparation. The Question and answers have been prepared according to the Class 11 exam syllabus. Information about A business man's cash book shows 10000 rs.bank overdraft. 540 cheque given to mohan but not yet presented 300 with future date,was debited in cashbook but not sent to bank Rs.400 cheque sent for collection but dishonoured Bank paid a bill payable rs.2000 after discount of rs.50 but in cashbook recorded with deducting discount Cheque of rs.54 deposited in Bank and credited in passbook but in cashbook it was recorded as rs.45 Bank received rs.500profits that was not recorded in cashbook? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A business man's cash book shows 10000 rs.bank overdraft. 540 cheque given to mohan but not yet presented 300 with future date,was debited in cashbook but not sent to bank Rs.400 cheque sent for collection but dishonoured Bank paid a bill payable rs.2000 after discount of rs.50 but in cashbook recorded with deducting discount Cheque of rs.54 deposited in Bank and credited in passbook but in cashbook it was recorded as rs.45 Bank received rs.500profits that was not recorded in cashbook?.
A business man's cash book shows 10000 rs.bank overdraft. 540 cheque given to mohan but not yet presented 300 with future date,was debited in cashbook but not sent to bank Rs.400 cheque sent for collection but dishonoured Bank paid a bill payable rs.2000 after discount of rs.50 but in cashbook recorded with deducting discount Cheque of rs.54 deposited in Bank and credited in passbook but in cashbook it was recorded as rs.45 Bank received rs.500profits that was not recorded in cashbook? for Class 11 2024 is part of Class 11 preparation. The Question and answers have been prepared according to the Class 11 exam syllabus. Information about A business man's cash book shows 10000 rs.bank overdraft. 540 cheque given to mohan but not yet presented 300 with future date,was debited in cashbook but not sent to bank Rs.400 cheque sent for collection but dishonoured Bank paid a bill payable rs.2000 after discount of rs.50 but in cashbook recorded with deducting discount Cheque of rs.54 deposited in Bank and credited in passbook but in cashbook it was recorded as rs.45 Bank received rs.500profits that was not recorded in cashbook? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A business man's cash book shows 10000 rs.bank overdraft. 540 cheque given to mohan but not yet presented 300 with future date,was debited in cashbook but not sent to bank Rs.400 cheque sent for collection but dishonoured Bank paid a bill payable rs.2000 after discount of rs.50 but in cashbook recorded with deducting discount Cheque of rs.54 deposited in Bank and credited in passbook but in cashbook it was recorded as rs.45 Bank received rs.500profits that was not recorded in cashbook?.
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A business man's cash book shows 10000 rs.bank overdraft. 540 cheque given to mohan but not yet presented 300 with future date,was debited in cashbook but not sent to bank Rs.400 cheque sent for collection but dishonoured Bank paid a bill payable rs.2000 after discount of rs.50 but in cashbook recorded with deducting discount Cheque of rs.54 deposited in Bank and credited in passbook but in cashbook it was recorded as rs.45 Bank received rs.500profits that was not recorded in cashbook?, a detailed solution for A business man's cash book shows 10000 rs.bank overdraft. 540 cheque given to mohan but not yet presented 300 with future date,was debited in cashbook but not sent to bank Rs.400 cheque sent for collection but dishonoured Bank paid a bill payable rs.2000 after discount of rs.50 but in cashbook recorded with deducting discount Cheque of rs.54 deposited in Bank and credited in passbook but in cashbook it was recorded as rs.45 Bank received rs.500profits that was not recorded in cashbook? has been provided alongside types of A business man's cash book shows 10000 rs.bank overdraft. 540 cheque given to mohan but not yet presented 300 with future date,was debited in cashbook but not sent to bank Rs.400 cheque sent for collection but dishonoured Bank paid a bill payable rs.2000 after discount of rs.50 but in cashbook recorded with deducting discount Cheque of rs.54 deposited in Bank and credited in passbook but in cashbook it was recorded as rs.45 Bank received rs.500profits that was not recorded in cashbook? theory, EduRev gives you an
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