Comparing Ram's Cash Book with the Bank Statement of his overdraft account for the month of November, 2017, find the following:
(i) Cash Book showed an overdraft of Rs. 45,000.
(ii) The payment side of the cash book had been undercast by 1,500.
(iii) A cheque for Rs. 7,500 drawn on his current account.
(iv) Cheques amounting to Rs. 70,000 drawn and entered in the Cash Book have not been presented.
(v) Cheques amounting to Rs. 60,000 sent to the bank for collection, which though entered in the cash book have not been credited by bank.
(vi) Bank charges of Rs. 750 as per Bank Statement have not been recorded in the cash book.
(vii) Dividends amounting to Rs, 35,000 have been paid directly into the bank and not entered in the Cash Book.
You are required to prepare Bank Reconciliation Statement on 30th November, 2017.

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Solution

Particulars Plus
(Rs.) Minus
(Rs.)
Overdraft as per cash book (Cr.)
Payment side of the cash book is undercast
Cheque drawn on saving account but wrongly shown as drawn on current account
Cheque issued but not yet presented for payment
Cheque paid into the bank but not yet credited
Bank charges
Direct receipt of dividend into the bank
7,500
70,000
35,000
$1, 12, 500$ 45,000
1,500
60,000
750
$1, 12, 500$

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On checking Ram’s Cash Book with the Bank statement of his overdraft current account for the month of November, 2012, you find the following:

(i) Cash Book showed an overdraft of Rs 45,000.
(ii) The payment side of the Cash Book had been under cast by Rs 1,500.
(iii) A cheque for Rs 7,500 drawn on his saving account has been shown as drawn on his current account.
(iv) Cheques amounting to Rs 70,000 drawn and entered in the Cash Book had not yet been presented.
(v) Cheques amounting to Rs 60,000 sent to the bank for collection,though entered in the Cash Book,had not been credited by the bank.
(vi) Bank charges of Rs 750 as per Bank Statement had not been taken into the Cash Book.
(vii) Dividends of Rs 25,000 had been paid direct into the bank and not entered in the Cash Book. You are required to prepare a Bank Reconciliation Statement on 30th November, 2012.

Enter the following transactions in cash book.

$\begin{matrix} 2013 & Rs Jan.01 & Cash in hand & 1, 500 Jan.05 & Paid to Ram & 300 Jan.05 & Discount allowed by him & 10 Jan.08 & Purchased goods & 400 Jan.10 & Received from R. Gupta & 980 Jan.10 & Discount allowed & 20 Jan.16 & Sold goods & 400 Jan.21 & Paid to S. Sharma & 295 Jan.21 & Discount received & 5 Jan.25 & Paid wages & 50 Jan.31 & Paid to Narayan in full settlement of his account which shows a credit balance Rs 400 & 390 \end{matrix}$

Q. On Checking Ram's Cash Book with the bank statement of his overdraft current account for the month of November 2014, you find the following:
(a) Cash Book showed an overdraft of ₹ 16,200.
(b) The payment side of the Cash Book had been undercast by ₹ 500.
(c) A cheque for ₹ 13,600 drawn on his saving deposit account has been wrongly recorded as drawn on current account in the Cash Book.
(d) Cheques amounting to ₹ 18,800 drawn and entered in the Cash Book had not been presented.
(e) Cheques amounting to ₹ 7,500 sent to the bank for collection though entered in the Cash Book, had not been credited by the bank.
(f) Bank charge of ₹ 150 as per bank statement of account had not been taken in the Cash Book.
(g) Dividend of the amount of ₹ 420 had been paid direct to the bank and not entered in the Cash Book.
You are requested to arrive at the balance as it would appear in the bank statement as on 30th November 2014.

Prepare a bank reconciliation statement from the following particulars and show the balance as per cash book.

(i)	Balance as per passbook on December 31, 2017 overdrawn Rs 20,000.
(ii)	Interest on bank overdraft not entered in the cash book Rs 2,000.
(iii)	Rs 200 insurance premium paid by bank has not been entered in the cash book.
(iv)	Cheques drawn in the last week of December, 2017, but not cleared till date for Rs 3,000 and Rs 3,500.
(v)	Cheques deposited into bank on November, 2017, but yet to be credited on dated December 31, 2013 Rs 6,000.
(vii)	Wrongly debited by bank Rs 500.

Jagdeep Singh's Cash book on 31st March, 2012 showed an over draft balance of Rs 12,100 on his No. 1 Account at the bank. On investigation it is found that:

(a) Cheque drawn amounting to Rs 4,200 had not been presented to the bank for payment.

(b) Cheque Rs 3,600 entered in the Cash Book and paid into the bank had not been credited by the bank.

(d) Bank charges on' 50 entered on the bank statement had not been entered in the Cash Book.

(e) A cheque for Rs 5,200 drawn on the Account No.1 had been charged by the bank in error to the Account No.2.

(f) A dividend of Rs 300 paid direct to the bank had not been entered in the Cash Book.

(g) A cheque for Rs 700 received from a debtor paid into the bank dishonoured and shown as such by the Bank but no entry of dis honour had been made in the Cash Book.

(h) A cheque of Rs 420, drawn by Bank’s another customer of the same name, had been charged to Jagdeep bank account by error.

You are required:

(i) To show the necessary adjustments to be made in the Cash Book; and

(ii) To prepare a Bank Reconciliation Statement for No.1 Account as at 31st March, 2012.

$\begin{matrix} Jan. 1 & Cash in Hand & 4, 000 Cash at Bank & 12, 000 Jan. 4 & Sold goods for cash & 13, 200 Jan. 5 & Received from Suresh & 2, 500 Jan. 6 & Received a Cheque from Ravi and deposited it into Bank. & 6, 400 Jan. 7 & Salary paid to office staff by Cheque & 7, 600 Jan. 10 & Paid Sudhir by Cheque & 5, 000 Jan. 12 & Cash Purchases & 8, 000 Jan. 16 & Cash deposited into Bank & 10, 000 Jan. 20 & Cash Sales & 15, 100 Purchased Machinery and payment made by Cash & 6, 800 Jan. 21 & Paid wages for erection of above Machinery & 400 Jan. 22 & Withdrew from Bank for office use & 7, 500 Jan. 23 & Received a Cheque from Anil and deposited it into Bank & 4, 600 Jan. 27 & Anil's Cheque returned by bank dishonoured & 4, 600 Jan. 31 & Paid into Bank & 12, 000 \end{matrix}$

Prepare a bank reconciliation statement from the following particulars and show the balance as per cash book.

(i) Balance as per pass book on December 31, 2010, overdrawn Rs. 20,000.

(ii) Interest on bank overdraft not entered in the cash book Rs. 2,000.

(iii) Rs. 200 insurance premium paid by the bank has not been entered in the cash book.

(iv) Cheques drawn in the last week of December 2010 were not cleared till date for Rs. 3,000 and Rs. 3,500.

(v) Cheques deposited into the bank on November 2010, but yet to be credited on dated December 31, 2010, Rs. 6,000.

(vi) Wrongly debited by the bank, Rs. 500.

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Particulars	Plus (Rs.)	Minus (Rs.)
Overdraft as per cash book (Cr.) Payment side of the cash book is undercast Cheque drawn on saving account but wrongly shown as drawn on current account Cheque issued but not yet presented for payment Cheque paid into the bank but not yet credited Bank charges Direct receipt of dividend into the bank	7,500 70,000 35,000 $1, 12, 500$	45,000 1,500 60,000 750 $1, 12, 500$