On December 31, 2017, the cash book of Mittal Bros. Showed an overdraft of Rs 6,920. From the following particulars prepare a Bank Reconciliation Statement and ascertain the balance as per passbook.

(1)

Debited by bank for Rs 200 on account of Interest on overdraft and Rs 50 on account of charges for collecting bills.

(2)

Cheques drawn but not encashed before December, 31 2017 for Rs 4,000.

(3)

The bank has collected interest and has credited Rs 600 in passbook.

(4)

A bill receivable for Rs 700 previously discounted with the bank had been dishonoured and debited in the passbook.

(5)

Cheques paid into bank but not collected and credited before December 31, 2017 amounted Rs 6,000.

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Solution

Bank Reconciliation Statement of Mittal Bros. as on December 31, 2017

S. No.

Particulars

(+)

Amount

(₹)

(–)

Amount

(₹)

Overdraft as per the Cash Book

6,920

1

Bank debited interest on overdraft

200

Bank debited charges for collecting bills

50

2

Cheque issued but not presented for payment

4,000

3

Bank collected interest

600

4

Bill Receivable dishonoured

700

5

Cheque deposited but not cleared in December

6,000

Overdraft as per the Pass Book

9,270

13,870

13,870

Note: The answer in the book has been given as ₹9,170 however, the correct answer will be ₹9,270.

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Similar questions

On December 31, 2010, the cash book of Mittal Bros showed an overdraft of Rs. 6,920. From the following particulars, prepare a Bank Reconciliation Statement and ascertain the balance as per pass book.

(i) Debited by the bank for Rs. 200 on account of Interest on overdraft and Rs. 50 on account of charges for collecting bills.

(ii) Cheques were drawn but not encashed before December 31, 2010, for Rs. 4,000.

(iii) The bank has collected interest and has credited Rs. 600 in passbook.

(iv) A bill receivable for Rs. 700 previously discounted with the bank had been dishonoured and debited in the passbook.

(v) Cheques paid into the bank but not collected and credited before December 31, 2010, amounted Rs. 6,000.

On 31st December, 2016, the cash book of Mittal Bros showed an overdraft of Rs. 6,920. From the following particulars, prepare a bank reconciliation statement and ascertain the balance as per pass book.

(i) Debited by bank Rs. 200 on account of interest on overdraft and Rs. 50 on account of charges for collecting bills.

(ii) cheque drawn but not encashed before 31st December 2016 for Rs. 4,000.

(iii) The bank has collected interest and has credited Rs. 600 in passbook.

(iv) A bill receivable for Rs. 700 previously discounted with the bank, had been dishonoured and debited in the passbook.

(v) Cheque paid into bank but not collected and credited before 31st December 2016 amounted to Rs. 6,000.

Q. On December 31, 2010, the cash book of Mittal Bros showed on overdraft of Rs.6,920. From the following particulars prepare a Bank Reconciliation Statement and ascertion the balance as per pass book.
i) Debited by bank for Rs. 200 on account of Interest on overdraft and Rs.50 on account of charges for collecting bills.
ii) Cheques drawn but not encashed before December 31, 2010 for Rs.4,000.
iii) The bank has collected interest and credited Rs. 600 in pass book.
iv) A bill receivable for Rs.700 previously discounted with the bank had been dishonoured and debited in the pass book.
v) Cheques paid into bank but not collected and credited before December 31, 2010 amounted Rs.6,000.

Prepare bank reconciliation statement.

(i)	Overdraft shown as per cash book on December 31, 2017 Rs 10,000.
(ii)	Bank charges for the above period also debited in the passbook Rs 100.
(iii)	Interest on overdraft for six months ending December 31, 2017 Rs 380 debited in the passbook.
(iv)	Cheques issued but not incashed prior to December 31, 2017 amounted to Rs 2,150.
(v)	Interest on Investment collected by the bank and credited in the passbook Rs 600.
(vi)	Cheques paid into bank but not cleared before December, 31 2017 were Rs 1,100.

Prepare bank reconciliation statement.

(i) Overdraft is shown as per cash book on December 31, 2010, Rs. 10,000.

(ii) Bank charges for the above period also debited in the passbook, Rs. 100.

(iii) Interest on overdraft for six months ending December 31, 2010, Rs. 380 debited in the passbook.

(iv) Cheques issued but not encashed prior to December 31, 2010, amounted to Rs. 2,150.

(v) Interest on Investment collected by the bank and credited in the passbook, Rs. 600.

(vi) Cheques paid into the bank but not cleared before December 31, 2010, were Rs. 1,100.

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(1)	Debited by bank for Rs 200 on account of Interest on overdraft and Rs 50 on account of charges for collecting bills.
(2)	Cheques drawn but not encashed before December, 31 2017 for Rs 4,000.
(3)	The bank has collected interest and has credited Rs 600 in passbook.
(4)	A bill receivable for Rs 700 previously discounted with the bank had been dishonoured and debited in the passbook.
(5)	Cheques paid into bank but not collected and credited before December 31, 2017 amounted Rs 6,000.

Bank Reconciliation Statement of Mittal Bros. as on December 31, 2017
S. No.	Particulars	(+) Amount (₹)	(–) Amount (₹)
	Overdraft as per the Cash Book		6,920
1	Bank debited interest on overdraft		200
	Bank debited charges for collecting bills		50
2	Cheque issued but not presented for payment	4,000
3	Bank collected interest	600
4	Bill Receivable dishonoured		700
5	Cheque deposited but not cleared in December		6,000

	Overdraft as per the Pass Book	9,270
		13,870	13,870