BRS and Rectification
A cheque deposited but not yet collected causes the Pass Book balance to be ______ than the Cash Book balance.
Lower
A donation received specifically for building construction is called a ______ donation.
Specific Donation
A machine is purchased on hire purchase for ₹3,60,000. Down payment is ₹60,000 and the balance is payable in 3 annual instalments of ₹1,20,000 each plus interest at 10% p.a. Calculate interest in the first year.
30000
Who pays royalty under a royalty agreement?
Lessee
A company takes over assets of ₹8,00,000 and liabilities of ₹2,00,000. Calculate the purchase consideration.
600000
The bank directly collects ₹5,000 from a customer. What adjustment is needed in the Cash Book?
Increase Cash Book balance by ₹5,000
Subscription outstanding at the end of the year is treated as a ______.
Current Asset
On 1st January 2025, the ABC Company bought a machine from HMT Ltd. On hire purchase system. The cash price was Rs. 26,350 and the payment was to be made as follows: Rs. 10,000 on signing of the agreement and the balance in 3 yearly instalments of Rs. 6,000 each, 5% interest is charged by the hire vendor. Calculate interest for 1st year.
818
Minimum rent is ₹50,000 and royalty is ₹40,000. Calculate shortworkings.
10,000
A company issues 30,000 shares of ₹10 each at a premium of 10% and 1,000 debentures of ₹100 each at par towards purchase consideration. Calculate the total purchase consideration.
4,30,000
A cheque of ₹10,000 issued but not presented for payment: what is its effect while starting with Cash Book balance?
Add ₹10,000
Rent paid ₹48,000; prepaid rent at beginning ₹4,000 and end ₹6,000. Calculate rent expense.
46000
On 1.4.2018 XYZ Company ltd. took delivery from ABC Company ltd. a machine on hire purchase system. Rs. 1500 being paid on delivery and the balance in 5 annual instalments of Rs. 3000 each payable annually on 31st March. The cash price of the machine was Rs.15,000. Calculate the interest for each year.
500, 400, 300, 200, 100
What is the recovery of previous shortworkings from excess royalty called?
Recoupment of shortworkings
Purchase consideration is ₹10,00,000. The company pays ₹2,00,000 in cash and issues equity shares of ₹10 each at 25% premium for the balance. Find the number of shares issued.
64000
Machinery purchased for ₹50,000 is omitted completely. What is the rectification entry?
Machinery A/c Dr. ₹50,000; To Cash/Creditor A/c ₹50,000
Receipts ₹2,00,000 and payments ₹1,60,000. Calculate the closing cash balance if opening cash was ₹20,000.
₹60,000
Journal entry for Interest being due in the books of vendor.
Hire Purchaser a/c Dr
To Vendor's account
f royalty exceeds minimum rent, which amount is payable: royalty or minimum rent?
Royalty
Purchase consideration is ₹8,00,000. The company issues 50,000 equity shares of ₹10 each at a premium of 20%. The balance is paid in cash. Calculate the cash component.
200000
Cash Book balance ₹40,000. Cheques deposited but not collected ₹6,000; bank directly credited interest ₹2,000. Find Pass Book balance.
₹36,000
Salary Expense Rs. 73000, outstanding salary at beginning ₹6,000 and end ₹9,000. Calculate salary paid.
₹70,000
Mr. Gopal purchased a lathe machine under Hire purchase system on 1.01.2021. The terms of the agreement are as follows:
No down payment.
Rs. 20,000 being paid yearly for 5 years
Interest charged @10% p.a. Present value of annuity of Re. 1 per annum @10% Rs. 3.79. Ascertain cash price of the lathe machine.
75800
Journal entry for short workings occurered, if Minimum rent is more and minimum rent account is made in the books of lessee.
Royalty A/c Dr
Short-workings A/c Dr
To Minimum Rent a/c
The company takes over assets worth ₹8,00,000 and liabilities of ₹2,00,000. What account is debited when recording purchase consideration?
Purchasing Company A/c