Pass the necessary Journal entries to rectify the following errors, using a Suspense Account:
(i) Goods of the value of 500 returned by Mr. A were entered in the Sales Day Book and posted there from to the credit of his account; (ii) 250 entered in the Sales Returns Book, has been posted to the debit of Mr. R, who returned the goods; (iii) A sale of 700 made to Mr. Q was correctly entered in the Sales Day Book but wrongly posted to the debit of Mr. S as 70; (iv) The total of "Discount allowed" Column in the Cash Book for September amounting to 350 was not posted.
[Sept. 2024, 4 Marks]

Pass the necessary Journal entries to rectify the following errors, using a Suspense Account: (i) Goods of the value of 500 returned by Mr. A were entered in the Sales Day Book and posted there from to the credit of his account; (ii) 250 entered in the Sales Returns Book, has been posted to the debit of Mr. R, who returned the goods; (iii) A sale of 700 made to Mr. Q was correctly entered in the Sales Day Book but wrongly posted to the debit of Mr. S as 70; (iv) The total of "Discount allowed" Column in the Cash Book for September amounting to 350 was not posted. [Sept. 2024, 4 Marks]

Meaning of Bank Reconciliation Statement.

Importance of bank reconciliation to an industrial unit. [RTP Jan 2025]

The interest charged by Banker to customer on overdrawn account is called Red ink interest.

Bank reconciliation statement is prepared to arrive at the bank balance.

Interest charged by the bank will be deducted, when the overdraft as per the cash book is the starting point for making the bank reconciliation statement.