Cash Book (Bank Column) : Answer Key of BRS, Boe Inventory Q1. in The Books of G

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ANSWER KEY OF BRS, BOE INVENTORY

Q1. In the Books of G


Cash Book (Bank Column)
Receipts ` Payments `
To Balance b/d 4,45,000 By Insurance premium A/c 2,700
To Dividend A/c 4,000 By Correction of errors 500
To Rent A/c 60,000 By Bank charges 150
To Bill receivable A/c 5,900 By Bill payable 20,000
By Balance c/d 4,91,550
5,14,900 5,14,900
Bank Reconciliation Statement as on 30th June, 2021
`
Adjusted balance as per cash book 4,91,550
Add: Cheques issued but not presented for payment till 30th June, 2021 60,000
Less: Cheques paid into bank for collection but not collected till 30th (55,500)
June, 2021
Balance as per pass book 4,96,050
Q2. Journal Entries in the books of Mr. A
2020 (`) (`)
May,12 B’s A/c Dr. 36,470
To Sales account 36,470
(Being goods sold to B on credit)
May,12 Bills receivable (No. 1) A/c Dr. 16,470
Bills receivable (No. 2) A/c Dr. 20,000
To B’s A/c 36,470
(Being drawing of bills receivable No. 1 due for
maturity on 15.6.2020 and bills receivable No. 2
due for maturity on 14.8.2020)
OR
Bills receivable A/c Dr. 36,470
To B’s A/c 36,470
(Being acceptances received from B, one for
` 16,470 at one month and other for ` 20,000 at
3 months)
June,5 Bills for Collection A/c Dr. 36,470
To Bills receivable (No.1) A/cTo 16,470
Bills receivable (No.2) A/c 20,000
(Being both the bills sent to bank for collection)
OR
Bills for Collection A/c Dr. 36,470
To Bills receivables A/c 36,470
(Being B’s acceptances sent for collection ondue
dates)
June,15 Bank A/c Dr. 16,470
To Bills for Collection A/c 16,470
(Being amount received on retirement of Bills
receivable No. 1)
Aug. 14 B’s A/c Dr. 20,020
To Bills for Collection a/c 20,000
20
To Noting Charges or Bank Charges (Being
the amount due from Mr. B on dishonour
of his acceptance on presentation on the due
date)
480
Aug. 16 B’s A/c Dr. 480
To Interest a/c(Being interest due)
Aug. 16 Bank/Cash A/c Dr. 8020
To B’s A/c 8020

(Being cash received)

Aug. 16 Bills receivable (No. 3) A/c Dr. 12480


12480
To B’s A/c
(Being Bills receivable (No. 3) drawn accepted by
B)
OR
Alternatively combined entry may be given for
the above two entries:
Bank/Cash a/c Dr. 8020
Bills receivable a/c Dr. 12480
20500
To B’s A/c
(Being cash and new acceptance at 3 months
received from B)
Aug. 16 12480
Bills for Collection A/c Dr.
12480
To Bills receivable (No.3) A/c
(Being Bills receivable (No.3) sent to bank for
collection)
OR
Bills for collection A/c Dr.
12480
To Bills receivable A/c 12480
(Being new acceptance sent to bank for
collection on due date)

OCT 1 BANK A/C 12240


REBATE AC 240

TO BILLS FOR COLLECTION 12480


(Being amount received on retirement of Bills
receivable (No.3))

Alternately combined entry may be given for the first three entries of Aug,16 :
Aug,16 Bank/ Cash A/c Dr. 8,020
Bills Receivable (No. 3) A/c Dr. 12,480
TO B;s ac 20020
To interest
480

Q3. In the books of Suresh


Journal Entries

Date Particulars Debit Credit


Amount Amount
2020 ` `
April 15 Bills receivable account Dr. 15,000
To Anup’s account 15,000
(Being acceptance received from Anup for
mutual accommodation)
April 18 Bank account Dr. 14,700
Discount account Dr. 300
To Bills receivable account 15,000
(Being bill discounted with bank)
April 18 Anup’s account Dr. 5,000
To Bank account 4,900
To Discount account 100
(Being one-third proceeds of the bill sent
toAnup)
July 18 Anup’s account Dr. 17,500
To Bills payable account 17,500
(Being Acceptance given)
July 18 Bank account Dr. 2,825
Discount account (400x/3/4) Dr. 300
To Anup’s account 3,125
(Being proceeds of second bill received from
Anup)
Oct.21 Bills payable account Dr. 17,500
To Anup’s account 17,500
(Being bill dishonoured due to insolvency)
Oct.31 Anup’s account (10,000+3,125 ) Dr. 13,125
To Bank account 6,562.50
To deficiency ac 6,562.50
Q4. Statement of Valuation of Stock as on 31st March, 2021
`
Value of stock as on 1st April, 2020 28,00,000
Add: Purchases during the year 1,38,40,000
Add: Manufacturing expenses during the above period 28,00,000
1,94,40,000
Less: Cost of sales during the period:
Sales 2,08,80,000
Less: Gross profit 51,40,000 1,57,40,000
Value of stock as on 31.3.2021 37,00,000
Working Note:
`
Calculation of gross profit:
Gross profit on normal sales 25/100 x (2,08,80,000 -6,40,000) 50,60,000
Gross profit on the particular (abnormal) item 6,40,000 - (8,00,000 – 80,000
2,40,000)
51,40,000

The value of closing stock on 31st March, 2021 may, alternatively, be found out bypreparing
Trading Account for the year ended 31st March, 2021.
Alternatively the solution can be presented in the following manner:
Dr Trading account for the year ended 31st March, 2021 Cr
Normal Abnormal Total Normal Abnormal Total
To Opening 22,40,000 5,60,000 28,00,000 By Sales 2,02,40,000 6,40,000 2,08,80,000
Stock 13,8,40,000 0 1,38,40,000 By Closing 37,00,000 0 37,00,000
To Purchases 28,00,000 0 28,00,000 Stock
To Manufacturing
50,60,000 80,000 51,40,000
Expenses
To Gross Profit
(Working Note)*
Total 2,39,40,000 6,40,000 2,45,80,000 2,39,40,000 6,40,000 2,45,80,000

Q5. Oil Mill


Calculation of the value of Inventory as on 31-3-2021

Receipts Issues Balance


Date Units Rate Amount Unit Rate Amoun Units Rate Amount
s t
` ` ` ` ` `
1-1-2021 Balance Nil
1-1-2021 10 300 3,000 10 300 3,000
15-1-2021 5 300 1,500 5 300 1,500
1-2-2021 20 400 8,000 25 380 9,500
15-2-2021 10 380 3,800 15 380 5,700
20-2-2021 10 380 3,800 5 380 1,900
Therefore, the value of Inventory as on 31-3-2021 = 5 units @ `380 = `1,900

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