Savvy Learner Channel

 Book Back Questions with Video Solutions In this article, you will find book back sums with solved video links to help you practice and understand the concept clearly. What is Cash Book? A cash book is a book of primary entry in which cash and bank transactions are recorded in chronological order. Receipts are recorded on the debit side of the cash book. Payments are recorded on the credit side of the cash book. Cash transactions are recorded in the cash column. Bank transactions are recorded in the bank column. It is balanced by deducting total payments from total receipts to know cash in hand and balance at bank. It performs the function of both Journal and the Ledger at the same time. Question 1: Prepare a simple cash book of Ripinder Delhi: Jan 01, 2021 Started business with capital: ₹ 2,00,000. Jan 02, 2021 Purchased furniture for cash: ₹ 50,000. Jan 03, 2021 Purchased goods for cash: ₹ 30,000. Jan 05, 2021 Paid freight: ₹ 500. Jan 07, 2021 Sold goods fo...

Book Back Questions with Video Solutions In this article, you will find book back sums with solved video links to help you practice and understand the concept clearly. Rectification of Errors: - Errors may or may not affect the trial balance, but they  must be detected and rectified. The process of detecting errors and the procedure to correct the accounting records are called the rectification of errors. Objectives of Rectification of Errors: - The following are the four objectives of Rectification of Errors: Maintaining correct accounting records. Redrafting the trial balance with the rectified ledger balances. Preparation of the correct profit and loss account by using the rectified figures to find out the correct profit/loss, as the case may be. Preparation of a balance sheet with the rectified figures to depict the correct value of the  assets and liabilities of the business. Classification of Errors: The following are four categories of errors: 1. ...