NCERT Solutions for Class 11 Accountancy Chapter 5 - Bank Reconciliation Statement
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1. State the need for the preparation of bank reconciliation statement?
Ans. A Bank Reconciliation Statement is needed due to the following reasons:
(i) It locates the errors that may have been committed either in the Cash Book or in the Passbook.
(ii) Preparation of Bank Reconciliation Statement on periodical basis reduces the chances of frauds and embezzlements.
(iii) It helps in revealing the undue delay in the clearance of cheques by the bank.
(iv) It facilitates preparation ofrevised Cash Book. Certain transactions which have already been recorded in the Passbook like entries relating to bank charges, interest allowed, direct payments by bank, etc. will now be recorded in the Cash Book as well.
2. What is an Bank Overdraft?
Ans. Bank Overdraft means amount withdrawn in excess of deposits made. Bank overdraft means facility by the bank whereby the firm can withdraw from bank more amount than it has deposited but up to the limit allowed by the bank. Amount withdrawn in excess of deposits in the bank is known as bank overdraft.
For example RK Stationers has overdraft facility of ₹25,000 from the bank. It means RK Stationers can withdraw up to ₹25,000 in excess of the deposits made. Bank overdraft has credit balance, i.e., is a liability meaning that much amount is payable to the bank.
3. Briefly explain the statement ‘wrongly debited by the bank, with the help on example.
Ans. Amount wrongly debited by the bank implies a situation when the bank wrongly decreases the balance of a Passbook. The following are the common mistakes that occur in the Passbook when bank wrongly debits the Passbook.
(i) Mistake occurs when any two account holders names are identical for example, a cheque of ₹2,000 issued by Mr. Prem Singh was wrongly paid through Mr. Prem Kumar’s account.
(ii) Mistake occurs in case a person has more than one account in a bank for example, a cheque of ₹1,000 issued from his current account was wrongly paid through his savings account.
(iii) Sometimes amounts of cheques are wrongly recorded for example, payment of ₹2,000 through cheque was wrongly debited in the Passbook as ₹20,000.
4. State the causes of differences occurred due to time lag.
Ans. The causes of difference occured due to time lag are:
(i) Cheques issued but not presented for payment.
(ii) Cheques deposited into Bank but not yet cleared.
5. Briefly explain the term ‘favourable balance as per Cash book’.
Ans. Debit or favourable balance as per Cash Book means amount lying deposited in the bank. It indicates that the trader has much balance at his bank.
6. Enumerate the steps to ascertain the correct Cash book balance.
Ans. Generally, differences between the Cash Book and the Passbook arise due to the reason that items have not been recorded in the Cash book. In order to ascertain the correct Cash Book balance, we need to prepare corrected (Adjusted) Cash Book.
The below given steps are involved in the preparation of corrected (Adjusted) Cash Book.
Step 1: Note down the bank balance as per the Cash Book.
Step 2: Rectify all the Errors committed in the Cash Book.
Step 3: Enter those transactions in the debit of the Cash Book, that are only in the credit of the Passbook.
Step 4: Enter those transactions in the credit of the Cash Book, that are only in the debit of the Passbook.
Step 5: The Cash Book is totalled and balancing figure is calculated.
This balancing figure is used for preparing Bank Reconciliation Statement.
Long Answer Type Question
7. What is Bank Reconciliation Statement? Why is it prepared?
Ans. Bank Reconciliation Statement is a statement prepared to reconcile the bank balance as per Cash Book with the balance as per Bank Statement or Bank Passbook. The reasons for differences are ascertained
and presented in the statement. Bank Reconciliation Statement is prepared to determine the reasons for differences between balance as per Cash Book and balance as per Bank Statement or Bank Passbook.
(i) It locates the errors that may have been committed either in the Cash Book or in the Passbook.
(ii) Preparation of Bank Reconciliation Statement on periodical basis reduces the chances of frauds and embezzlements.
(iii) It helps in revealing the undue delay in the clearance of cheques by the bank.
(iv) It facilitates preparation ofrevised Cash Book. Certain transactions which have already been recorded in the Passbook like entries relating to bank charges, interest allowed, direct payments by bank, etc. will now be recorded in the Cash Book as well.
8. Explain the reasons where the balance shown by the bank Passbook does not agree with the balance as shown by the bank column of the cash book.
Ans. Balances as per Cash Book and Bank Statement or Bank Passbook may differ under some situations. We can broadly classify these situations into three categories:
(i) Difference Due to Timing in Recording Entries: There is always a time gap between recording a transaction in the books of account and it being recorded by the bank. For example, a cheque issued is recorded in the Cash Book immediately but the bank records it on being presented for payment which is on a later date. Similarly, a cheque deposited is recorded in the Cash Book immediately whereas the bank credits it on its being cleared, i.e., when bank has collected the amount. If Bank Reconciliation Statement is prepared in between the two dates, differences will reflect.
(ii) Transactions Recorded by the Bank but not by the Account Holder: Sometimes transactions are recorded by the bank, which is known to the account holder on receiving the Bank Statement or Bank Passbook. For example, interest charges allowed, bank charges, etc., are known to the account holder after receiving the Bank Statement or Bank Passbook. Such transactions in the Bank Statement lead difference between the balance as per Cash Book and balance as per Bank Statement or Bank Passbook.
(iii) Errors: Errors may be committed by the bank or the account holder and these errors raise difference in the balances of Cash Book and Bank Statement or Passbook. For example, wrong balance may be carried forward, a transaction may not have been recorded into Cash book or amount of a transaction may have been wrongly recorded in an account.
9. Explain the process of preparing Bank Reconciliation Statement with amended cash balance.
Ans. (i) Note bank balance as per Cash book: In this step, the balance of the bank account as recorded in the Cash book is noted.This is the starting point of the reconcilliation process.
(ii) Make corrections for errors committed in the Cash book: Any errors or mistakes made in recording transactions in the cash book need to be identified and rectified. This includes errors such as incorrect amounts, missing entries, or posting entries to the wrong side of the Cash book.
(iii) Transactions present only on the Passbook’s credit side must be updated in the debit side of the cash book: Sometimes, there are transactions recorded in the Passbook (Bank Statement), that are not recorded in the Cash book. These transactions are typically credits, such as deposits or interest earned. To reconcile the difference, these transactions need to be added to the debit side of the Cash book.
(iv) Transactions present only on the passbook’s debit side must be updated in the credit side of the Cash book: Similarly, if there are transactions recorded in the Passbook’s debit side (bank charges, checks issued, etc.) that are not recorded in the Cash book, these transactions need to be added to the credit side of the Cash book to reflect the correct balance.
(v) Calculate the new Cash book balance and prepare a Bank Reconciliation Statement: After updating the Cash book with the missing transactions, the adjusted or amended balance is calculated. This is the corrected balance that should match the balance shown in the Passbook. The Bank Reconciliation Statement is then prepared to provide, including outstanding check, deposits in transit, bank charges, and other reconciling items.
Numerical Questions
10. From the following particulars, prepare a bank reconciliation statement as at March 31, 2017.
(a) Balance as per cash book ₹3,200
(b) Cheque issued but not presented for payment ₹1,800
(c) Cheque deposited but not collected upto March 31, 2017 ₹2,000
(d) Bank charges debited by bank ₹150
Ans.
Bank Reconciliation Statement
| Particulars | Plus (₹) |
Minus (₹) |
|
| (a) | Balance as per the Cash Book | 3,200 | |
| (b) | Cheque issued but not prescribed for ₹1,800 | 1,800 | |
| (c) | Cheque deposited but not cleared | 2,000 | |
| (d) | Bank charges | 150 | |
| Balance as per the Pass Book | 2,850 | ||
| 5,000 | 5,000 |
Bank Reconciliation Statement
as on 31st March, 2017
| Particulars | Plus (₹) |
Minus (₹) |
| Balance as per the Cash Book | 3,700 | |
| (i) Three cheques issued but not presented for payment | 1,180 | |
| (ii) Cheque deposited but not cleared | 1,200 | |
| Balance as per the Pass Book | 3,680 | |
| 4,880 | 4,880 |
12. The Cash book shows a bank balance of ₹7,800. On comparing the Cash book with Passbook the following discrepancies were noted:
(a) Cheque deposited in bank but not credited ₹3,000
(b) Cheque issued but not yet present for payment ₹1,500
(c) Insurance premium paid by the bank ₹2,000
(d) Bank interest credit by the bank ₹400
(e) Bank charges ₹100
(f) Directly deposited by a customer ₹4,000
Ans.
Bank Reconciliation Statement
| Particulars | Plus (₹) |
Minus (₹) |
| Balance as per the Cash Book | 7,800 | |
| (a) Cheque deposited but not credited in the Pass Book | 3,000 | |
| (b) Cheque issued but not yet presented for payment | 1,500 | |
| (c) Insurance premium paid by bank | 2,000 | |
| (d) Bank allowed interest | 400 | |
| (e) Bank debited charges | 100 | |
| (f) Amount directly deposited by customer | 4,000 | |
| Balance as per the Pass Book | 8,600 | |
| 13,700 | 13,700 |
13. Bank balance of ₹40,000 showed by the Cash book of Atul on December 31, 2016. It was found that three cheques of ₹2,000, ₹5,000 and ₹8,000 deposited during the month of December were not credited in the Passbook till January 02, 2017. Two cheques of ₹7,000 and ₹8,000 issued on December 28, were not presented for payment till January 03, 2017. In addition to it bank had credited Atul for ₹325 as interest and had debited him with ₹50 as bank charges for which there were no corresponding entries in the Cash book.
Prepare a Bank Reconciliation Statement as on December 31, 2016.
Ans.
Bank Reconciliation Statement
as on 31st December, 2016
| Particulars | Plus (₹) |
Minus (₹) |
| Balance as per the Cash Book | 40,000 | |
| (i) Cheques deposited but not cleared in December | 15,000 | |
| (ii) Cheque issued but presented for payment | 15,000 | |
| (iii) Bank allowed interest | 325 | |
| (iv) Bank debited charges | 50 | |
| Balance as per the Pass Book | 40,275 | |
| 55,325 | 55,325 |
14. On comparing the Cash book with Passbook of Naman it is found that on 31st March, 2017, bank balance of ₹40,960 showed by the Cash book differs from the bank balance with regard to the following:
(a) Bank charges ₹100 on 31st March, 2017, are not entered in the cash book.
(b) On March 21, 2017, a debtor paid ₹2,000 into the company’s bank in settlement of his account, but no entry was made in the Cash book of the company in respect of this.
(c) Cheques totalling ₹12,980 were issued by the company and duly recorded in the Cash book before 31st March, 2017, but had not been presented at the bank for payment until after that date.
(d) A bill for ₹6,900 discounted with the bank is entered in the Cash book without recording the discount charge of ₹800.
(e) ₹3,520 is entered in the Cash book as paid into bank on 31st March, 2017, but not credited by the bank until the following day.
(f) No entry has been made in the Cash book to record the dishonor on 15th, March , 2017 of a cheque for ₹650 received from Bhanu.
Prepare a Reconciliation Statement as on 31st March, 2017.
Note: There is an error in NCERT, this question has include two types of years, we have to prepare Bank Reconciliation Statement for the year 2017.
Ans.
Bank Reconciliation Statement
as on 31st March, 2017
| Particulars | Plus (₹) |
Minus (₹) |
| Balance as per the Cash Book | 40,960 | |
| (a) Bank debited charges | 100 | |
| (b) Amount directly paid by debtor into bank | 2,000 | |
| (c) Cheques issued but not presented for payment | 12,980 | |
| (d) Discount charges of bill was omitted to be recorded in the Cash Book | 800 | |
| (e) Amount debited in bank column of the Cash Book but not deposited in bank | 3,520 | |
| (f) Cheque dishonoured not recorded in the Cash Book | 650 | |
| Balance as per the Passbook | 50,870 | |
| 55,940 | 55,940 |
15. Prepare Bank Reconciliation Statement as on 31st December, 2017. This day the Passbook of Mr. Himanshu showed a balance of ₹7,000.
(a) Cheques of ₹1,000 directly deposited by a customer.
(b) The bank has credited Mr. Himanshu for ₹700 as interest.
(c) Cheques for ₹3000 were issued during the month of December but of these cheques for ₹1,000 were not presented during the month of December.
Ans.
Bank Reconciliation Statement
as on 31st December, 2017
| Particulars | Plus (₹) |
Minus (₹) |
| Balance as per the Cash Book | 7,000 | |
| (a) Cheques directly deposited by a customer | 1,000 | |
| (b) Bank allowed interest | 700 | |
| (c) Cheques issued but not presented for payment in December | 1,000 | |
| Balance as per the Cash Book | 4,300 | |
| 7,000 | 7,000 |
16. From the following particulars prepare a Bank Reconciliation Statement showing the balance as per Cash book on December 31, 2016.
(a) Two cheques of ₹2,000 and ₹5,000 were paid into bank in October, 2016 but were not credited by the bank in the month of December.
(b) A cheque of ₹800 which was received from a customer was entered in the bank column of the cash book in December 2016 but was omitted to be banked in December, 2016.
(c) Cheques for ₹10,000 were issued into bank in November 2016 but not credited by the bank on December 31, 2016.
(d) Interest on investment ₹1,000 collected by bank appeared in the Passbook.
Balance as per Passbook was ₹50,000
Ans.
Bank Reconciliation Statement
as on 31st December, 2016
| Particulars | Plus (₹) |
Minus (₹) |
| Balance as per the Cash Book | 50,000 | |
| (a) Cheques deposited but not cleared till December | 7,000 | |
| (b) Cheque debited in the Cash Book but not deposited in bank | 800 | |
| (c) Cheque issued but not presented (not debited in the Passbook) | 10,000 | |
| (d) Interest on investment collected by bank | 1,000 | |
| Balance as per the Cash Book | 46,800 | |
| 57,800 | 57,800 |
17. Balance as per Passbook of Mr. Kumar is ₹3,000.
(a) Cheque paid into bank but not yet cleared
Ram Kumar ₹1,000
Kishore Kumar ₹500
(b) Bank Charges ₹300
(c) Cheque issued but not presented
Hameed ₹2,000
Kapoor ₹500
(d) Interest entered in the Passbook but not entered in the Cash book ₹100.
Prepare a Bank Reconciliation Statement.
Ans.
Bank Reconciliation Statement of Mr. Kumar
| Particulars | Plus (₹) |
Minus (₹) |
| Balance as per the Cash Book | 3,000 | |
| (a) Cheques deposited but not yet cleared | 1,500 | |
| (b) Bank debited charges | 1,500 | |
| (c) Cheques issued but not presented for payment | 2,500 | |
| (d) Bank allowed interest but not entered in the Cash Book | 100 | |
| Balance as per the Cash Book | 2,200 | |
| 4,800 | 4,800 |
| Particulars | Plus (₹) |
Minus (₹) |
| Balance as per the Cash Book | 20,000 | |
| (i) Cheques issued from saving account wrongly debited in the current account of the Passbook | 400 | |
| (ii) Cheque issued but not presented for payment | 500 | |
| (iii) Cheque issued but not presented for payment and twice credited in Cash book | 1,000 | |
| Balance as per Cash book | 19,900 | |
| 20,400 | 20,400 |
18. The Passbook of Mr. Mohit’s current account showed a credit balance of ₹20,000 on dated December 31, 2016. Prepare a Bank Reconciliation Statement with the following information.
(i) A cheque of ₹400 drawn on his saving account has been shown on current account.
(ii) He issued two cheques of ₹300 and ₹500 on of December 25, but only the First cheque was presented for payment.
(iii) One cheque issued by Mr. Mohit of ₹500 on December 25, but it was not presented for payment whereas it was recorded twice in the Cash book.
Ans.
Bank Reconciliation Statement Mr. Mohit’s Current Account
as on 31st December, 2016
19. On 1st January 2017, Rakesh had an overdraft of ₹8,000 as showed by his Cash book. Cheques amounting to ₹2,000 had been paid in by him but were not collected by the bank by January 01, 2017.
He issued cheques of ₹800 which were not presented to the bank for payment up to that day. There was a debit in his Passbook of ₹60 for interest and ₹100 for bank charges.
Prepare Bank Reconciliation Statement for comparing both the balances.
Ans.
Bank Reconciliation Statement of Rakesh
as on 01st January, 2017
| Particulars | Plus (₹) |
Minus (₹) |
| Overdraft as per the Cash Book | 8,000 | |
| Cheques deposited but not yet cleared | 2,000 | |
| Cheques issued but not presented for payment | 800 | |
| Interest on overdraft debited by bank | 60 | |
| Bank debited charges | 100 | |
| Overdraft as per the Pass Book | 9,360 | |
| 10,160 | 10,160 |
20. Prepare Bank Reconciliation Statement.
(i) Overdraft shown as per Cash book on December 31, 2017 ₹10,000.
(ii) Bank charges for the above period also debited in the Passbook ₹100.
(iii) Interest on overdraft for six months ending December 31, 2017 ₹380 debited in the passbook.
(iv) Cheques issued but not encashed prior to December 31, 2017 amounted to ₹2,150.
(v) Interest on Investment collected by the bank and credited in the Passbook ₹600.
(vi) Cheques paid into bank but not cleared before December, 31, 2017 were ₹1,100.
Ans.
Bank Reconciliation Statement
as on 31st December, 2017
| Particulars | Plus (₹) |
Minus (₹) |
|
| (i) | Overdraft as per the Cash Book | 10,000 | |
| (ii) | Bank debited charges | 100 | |
| (iii) | Interest charged by bank on overdraft | 380 | |
| (iv) | Cheques issued but not presented for payment | 2,150 | |
| (v) | Interest on investment credited in the Passbook but not entered in the cash book | 600 | |
| (vi) | Cheques deposited but cleared | 1,100 | |
| Overdraft as per the Passbook | 8,830 | ||
| 11,580 | 11,580 |
21. Kumar finds that the bank balance shown by his Cash book on December 31, 2017 is ₹90,600 (Credit) but the Passbook shows a difference due to the following reason:
A cheque (post dated) for ₹1,000 has been debited in the bank column of the Cash book but not presented for payment. Also, a cheque for ₹8,000 drawn in favour of Manohar has not yet been presented for payment. Cheques totaling ₹1,500 deposited in the bank have not yet been collected and cheque for ₹5,000 has been dishonoured.
Ans.
Bank Reconciliation Statement of Kumar
as on 31st December, 2017
| Particulars | Amount (₹) |
Amount (₹) |
| Overdraft as per the Cash Book | 90,600 | |
| Cheque debited in the Cash Book but not deposited in the bank | 1,000 | |
| Cheque issued but not presented for payment | 8,000 | |
| Cheque deposited but not yet cleared | 1,500 | |
| Cheque dishonoured | 5,000 | |
| Overdraft as per the Passbook | 90,100 | |
| 98,100 | 98,100 |
22. On December 31, 2017, the Cash book of Mittal Bros showed an overdraft of ₹6,920. From the following particulars prepare a Bank Reconciliation Statement and ascertain the balance as per Passbook.
(i) Debited by bank for ₹200 on account of Interest on overdraft and ₹50 on account of charges for collecting bills.
(ii) Cheques drawn but not encashed before December 31, 2017 for ₹4,000.
(iii) The bank has collected interest and has credited ₹600 in Passbook.
(iv) A bill receivable for ₹700 previously discounted with the bank had been dishonoured and debited in the Passbook.
(v) Cheques paid into bank but not collected and credited before December 31, 2017 amounted ₹6,000.
Ans.
Bank Reconciliation Statement of Mittal Bros.
as on 31st December, 2017
| Particulars | Plus (₹) |
Minus (₹) |
| Overdraft as per the Cash Book | 6,920 | |
| (i) Bank debited interest on overdraft | 200 | |
| Bank debited charges for collecting bills | 50 | |
| (ii) Cheque issued but not presented for payment | 4,000 | |
| (iii) Bank collected interest | 600 | |
| (iv) Bill Receivable dishonoured | 700 | |
| (v) Cheque deposited but not cleared in December | 6,000 | |
| Overdraft as per the Passbook | 9,270 | |
| 13,870 | 13,870 |
23. Prepare Bank Reconciliation Statement of Shri Bhandari as on March 31, 2017:
(i) The payment of a cheque for ₹550 was recorded twice in the Passbook.
(ii) Withdrawal column of the Passbook undercast by ₹200.
(iii) A Cheque of ₹200 has been debited in the bank column of the Cash Book but it was not sent to bank at all.
(iv) A Cheque of ₹300 debited to bank column of the Cash book was not sent to the bank.
(v) ₹500 in respect of dishonoured cheque were entered in the Passbook but not in the Cash book.
Overdraft as per Passbook is ₹20,000.
Ans.
Bank Reconciliation Statement of Shri Bhandari
as on 31st March, 2017
| Particulars | Plus (₹) |
Minus (₹) |
| Overdraft as per the Cash Book | 20,000 | |
| (i) Payment of cheque twice debited in the Passbook | 550 | |
| (ii) Withdrawal column of the Passbook undercast | 200 | |
| (iii) Cheque debited in the Cash Book but not deposited in the bank | 200 | |
| (iv) Cheque added in the Cash Book but not deposited in the bank | 300 | |
| (v) Cheque dishonoured | 500 | |
| Overdraft as per the Cash Book | 18,650 | |
| 20,200 | 20,200 |
24. Overdraft shown by the Passbook of Mr. Murli is ₹20,000. Prepare Bank Reconciliation Statement on dated March 31, 2017.
(i) Bank charges debited as per Passbook ₹500.
(ii) Cheques recorded in the Cash book but not sent to the bank for collection ₹2,500.
(iii) Received a payment directly from customer ₹4,600.
(iv) Cheque issued but not presented for payment ₹6,980.
(v) Interest credited by the bank ₹100.
(vi) LIC paid by bank ₹2,500.
(vii) Cheques deposited with the bank but not collected ₹3,500.
Ans.
Bank Reconciliation Statement Mr. Murli
as on 31st March, 2017
| Particulars | Plus (₹) |
Minus (₹) |
| Overdraft as per the Cash Book | 20,000 | |
| (i) Bank charges debited in the Passbook | 500 | |
| (ii) Cheque recorded in the Cash Book but not banked | 2,500 | |
| (iii) Amount directly paid by customer in the bank | 4,600 | |
| (iv) Cheque issued but not presented for payment | 6,980 | |
| (v) Interest allowed by bank | 100 | |
| (vi) LIC (Insurance premium) paid by bank | 2,500 | |
| (vii) Cheques deposited but not cleared | 3,500 | |
| Overdraft as per the Cash Book | 22,680 | |
| 31,680 | 31,680 |
25. Raghav & Co. have two bank accounts. Account No. I and Account No. II. From the following Particulars relating to Account No. I, find out the balance on that account of March 31, 2017 according to the Cash book of the firm.
(i) Cheques paid into bank prior to March 31, 2017, but not credited for ₹10,000.
(ii) Transfer of funds from Account No. II to Account no. I recorded by the bank on March 31, 2017 but entered in the Cash book after that date for ₹8,000.
(iii) Cheques issued prior to March 31, 2017 but not presented until after that date for ₹7,429.
(iv) Bank charges debited by bank not entered in the cash book for ₹200.
(v) Interest debited by the bank not entered in the Cash book ₹580.
(vi) Overdraft as per Passbook ₹18,990.
Ans.
Bank Reconciliation Statement of Mr. Raghav and Co. Account No. 1
as on 31st March, 2017
(₹) |
Minus (₹) |
|
| Overdraft as per the Passbook | 18,990 | |
| (i) Cheque deposited but not cleared prior to 31 Dec. 2017 | 10,000 | |
| (ii) Amount transferred Account II to Account I recorded in the Passbook 8,000 but not entered in the Cash Book | 8,000 | |
| (iii) Cheque issued but not presented for payment | 7,429 | |
| (iv) Bank debited charges | 200 | |
| (v) Interest on overdraft not credited in the Cash Book | 580 | |
| Overdraft as per the Cash Book | 23,639 | |
| 34,419 | 34,419 |
26. Prepare a Bank Reconciliation Statement from the following particulars and show the balance as per Cash book.
(i) Balance as per Passbook on March 31, 2017 overdrawn ₹20,000.
(ii) Interest on bank overdraft not entered in the Cash book ₹2,000.
(iii) ₹200 insurance premium paid by bank has not been entered in the Cash book.
(iv) Cheques drawn in the last week of March 2017, but not cleared till date for ₹3,000 and ₹3,500.
(v) Cheques deposited into bank on February 2017, but yet to be credited on dated March 31, 2017 ₹6,000.
(vii) Wrongly debited by bank ₹500.
Ans.
Bank Reconciliation Statement
as on 31st March, 2017
(₹) |
Minus (₹) |
|
| (i) Overdraft as per the Passbook | 20,000 | |
| (ii) Interest on overdraft not credited in the Passbook | 2,000 | |
| (iii) Insurance premium paid by bank entered in the Cash Book | 200 | |
| (iv) Cheques issued but not presented for payment | 6,500 | |
| (v) Cheques deposited but not cleared | 6,000 | |
| (vi) Amount wrongly debited by bank | 500 | |
| Overdraft as per the Cash Book | 17,800 | |
| 26,500 | 26,500 |
27. The Passbook of Mr. Randhir showed an overdraft of ₹40,950 on March 31, 2017. Prepare Bank Reconciliation Statement on March 31, 2017.
(i) Out of cheques amounting to ₹8,000 drawn by Mr. Randhir on March 27 a cheque for ₹3,000 was encashed on April 2017.
(ii) Credited by bank with ₹3,800 for interest collected by them, but the amount is not entered in the Cash book.
(iii) ₹10,900 paid in by Mr. Randhir in cash and by cheques on March, 31 cheques amounting to ₹3,800 were collected on April, 07.
(iv) A cheque of ₹780 credited in the Passbook on March 28 being dishonoured is debited again in the Passbook on April 01, 2017. There was no entry in the Cash book about the dishonour of the cheque until April 15.
Ans.
Bank Reconciliation Statement of Mr. Randhir
as on 31st March, 2017
(₹) |
Minus (₹) |
|
| Overdraft as per the Passbook | 40,950 | |
| (i) Cheque issued but not presented for payment in March | 3,000 | |
| (ii) Interest collected by bank not entered in the Cash Book | 3,800 | |
| (iii) Cheque deposited but not yet cleared in March | 3,800 | |
| (iv) Cheque dishonoured in April | 780 | |
| Overdraft as per the Cash Book | 43,170 | |
| 47,750 | 47,750 |
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