Tell treatment in Brs:1. Cash discount received of RS 250 recorded as RS 520 in bank column of cash book (2). An issued cheque of RS 1500 was dishonoured but cash book shows a deposited cheque has become dishonoured.
Dear Student,
(1) "Cash Discount" do not form part of Cash Book until it has a column named Discount i.e. discount amount is not to be recorded either in cash column or Bank column of Cash Book.
Now in the given situation , the book keeper records discount in Bank column at Rs 520 which is actually of Rs 250. Assuming that it would have been recorded on credit side (as discount received forms credit side of cash book), we would "Add" the amount of Rs 520 while preparing BRS as per Cash Book or "Deduct" the amount while preparing BRS as per Pass Book.
(2) An issued cheque of RS 1500 was dishonoured but cash book shows a deposited cheque has become dishonoured.:
The situation means that a cheque was issued & got dishonoured but the book keeper wrongly shown the received cheque as dishonoured .
While preparing BRS as per Cash Book, Rs 1500 would be added back as it was dishonoured & the deposited cheque deducted would also be added back as it was shown wrongly dishonoured.
Regards,
(1) "Cash Discount" do not form part of Cash Book until it has a column named Discount i.e. discount amount is not to be recorded either in cash column or Bank column of Cash Book.
Now in the given situation , the book keeper records discount in Bank column at Rs 520 which is actually of Rs 250. Assuming that it would have been recorded on credit side (as discount received forms credit side of cash book), we would "Add" the amount of Rs 520 while preparing BRS as per Cash Book or "Deduct" the amount while preparing BRS as per Pass Book.
(2) An issued cheque of RS 1500 was dishonoured but cash book shows a deposited cheque has become dishonoured.:
The situation means that a cheque was issued & got dishonoured but the book keeper wrongly shown the received cheque as dishonoured .
While preparing BRS as per Cash Book, Rs 1500 would be added back as it was dishonoured & the deposited cheque deducted would also be added back as it was shown wrongly dishonoured.
Regards,