Magesh, an enthusiastic young entrepreneur, started a business on 1st December, 2017. He opened a current account with a nationalised bank for his business transaction. In the same bank, he maintains his personal savings bank account too. He did not find time to maintain his cash book. So he appointed a person called Dinesh to take care of bank transactions. But that person was inexperienced.
(i) On 1st December, 2017, the opening balance as per cash book and bank record was the same. On 2nd December, Magesh issued a cheque for Rs. 2,000 to a supplier, but the same was entered in the credit side of the cash book as Rs. 200
(ii) On 3rd , December, Magesh issued his savings bank account cheque for his personal expenses amounting to Rs. 2,500, but Dinesh assumed this as current account cheque and the same was entered in the cash book as drawings.
(iii) Dinesh was asked to deposit cash of Rs. 1,000 in cash deposit machine in order to make a payment to one of the business’ supplier. He credited the same in the bank column of the cash book.
