Question

From the folowing particulars, find out corrected bank balance as per Cash Book and thereafter proepare a Bank Reconcilation Statement as on 31st March, 2018 of a sole proprietor:

		₹
(i)	Bank overdraft as per the Cash Book.	80,000
(ii)	Cheques deposited as per the bank statement but not entered in the Cash Book.	3,000
(iii)	Cheques recorded for collection but not sent to the bank.	10,000
(iv)	Credit side of bank column casted short.	1,000
(v)	Bank charges recorded twice in the Cash Book.	100
(vi)	Customer's cheque returned as per the Bank Statement.	4,000
(vii)	Cheques issued but dishonoured on technical grounds.	3,000
(viii)	Bill collected by bank directly.	20,000
(ix)	Cheque received entered twice in the Cash Book.	5,000

Answer 1

Cash Book (Adjusted) for the month of March 31, 2018
Dr.					Cr.
Date	Particulars	Bank (Rs)	Date	Particulars	Bank (Rs)
2018			2018
Mar.31	Cheques Omitted to enter	3,000	Mar.31	Balance b/d (Overdraft)	80,000
	Bills Collection	20,000		Adjustment for undercasting	1,000
	Bank Charges	100		Cheques returned	4,000
	Balance c/d	66,900		Cheque recorded twice	5,000
		90,000			90,000

Bank Reconciliation Statement as on March 31, 2018
S. No.	Particulars	Plus Items (Rs)	Minus Items (Rs)
	Overdraft as per the (adjusted) Cash Book		66,900
(i)	Cheques recorded in the Cash Book but not sent to bank for collection		10,000
(ii)	Cheque issued but not cleared on technical grounds	3,000
	Overdraft as per the Pass Book	73,900
		76,900	76,900