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Loan and Rent

On 30th June ...

Question

On 30th June 2014, the bank balance as per Sanjay Yadav's Cash Book was ₹ 1,500. On comparing with the Pass Book the following information was received:-
1. Cheques amounting to ₹ 7,290 were issued on 28th June, of which one cheque of ₹ 1,300 was presented in the bank for payment on 4th July.
2. Cheques deposited into bank for ₹ 10,000, but of these cheques for ₹ 4,000 were cleared and credited in July.

3. Interest and Dividend on investments ₹ 580 collected by bank and credited to his account but he did not have any information for this.
4. Life Insurance Premium ₹ 750 paid by bank according to his standing orders.
5. Bank Charges ₹ 25 not recorded in the Cash Book.
Prepare a Bank Reconciliation Statement.

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Solution

Bank Reconciliation Statement
as on June 30, 2014

S. No. Particulars Plus Items (Rs) Minus Items (Rs)

Debit Balance as per Cash Book 1,500

Add: 1. Cheques issued but not presented for payment
1,300

3. Interest and Dividend collected by Bank
580

Less: 2. Cheques deposited but not yet credited by the bank
4,000

4. Life Insurance Premium paid by Bank
750

5. Bank charges not recorded in Cash Book
25

Debit Balance (Overdraft) as per Pass Book 1,395

4,775 4,775

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Q. On 30th June 2014, the Cash Book of a trader shows a bank overdraft of ₹ 2,500. Following informations are available:-
1. Cheques amounting to ₹ 14,600 had been paid to the bank, but of these only ₹ 12,200 were credited in the Pass Book, up to 30th June, 2014.
2. He had also issued cheques amounting to ₹ 10,000, out of which only ₹ 3,600 had been presented for payment.
3. A cheque of ₹ 500 which he had debited to the bank account was not sent to bank for collection by mistake.
4. There is a debit in the Pass Book of ₹ 10 for Bank Charges and ₹ 50 for interest.
5. A customer directly paid into his bank ₹ 1,000, but it was not shown in the Cash Book.
6. Bank has paid insurance premium of ₹ 400 according to his instructions, but this is not recorded in the Cash Book.
Prepare a Bank Reconciliation Statement.

Q. Prepare bank reconciliation statement of Dinesh on 30th June 2014 with following particulars:
(i) Pass Book showed an overdraft of ₹ 15,000 on 30th June 2014.
(ii) A cheque of ₹ 200 was deposited in bank but not recorded in Cash Book.
(iii) Cheques of ₹ 17,000 were issued but cheques worth only ₹ 10,000 were presented for payment up to 30th June 2014.
(iv) Cheques of ₹ 2,000 were received and recorded in Cash Book but not sent to bank.
(v) Cheques of ₹ 10,000 were sent to bank for collection; out of these cheques of ₹ 2,000 and of ₹ 1,000 were credited respectively on 8th July and 10th July and the remaining cheques were credited before 30th June 2014.
(vi) Bank paid ₹ 300 fee of Chamber of Commerce on behalf of Dinesh, which was not recorded in Cash Book.
(vii) Bank charged interest on overdraft ₹ 800 which was not recorded in Cash Book.
(viii) ₹ 40 for bank charges were recorded two times in Cash Book and bank expenses of ₹ 35 were not at all recorded in Cash Book.
(ix) Total of credit side of bank column of Cash Book was undercast by ₹ 1,000 by mistake.

Q. On 30th June, 2014 the Pass Book of Sh. Mahabir Prashad showed a balance of ₹ 22,000. On comparing the Pass Book with Cash Book the following differences were found:-
1. Mahabir Prashad had paid into the Bank on 26th June four cheques for ₹ 3,000; ₹ 6,000; ₹ 8,000 and ₹ 10,000. Of these, the cheque for ₹ 6,000 was credited by the bank in July 2014.
2. On 23rd June three cheques were drawn for ₹ 12,000; ₹ 13,000 and ₹ 16,000. The first two cheques were presented to the bank for payment in June and the third in July 2014.
3. Cheques amounting to ₹ 3,600 were deposited in the bank but no entry was passed in the Cash Book.
4. Bank charges entered in Cash Book twice ₹ 50.
5. Cheque received entered twice in the Cash Book ₹ 3,200.
Prepare a Bank Reconciliation Statement as on 30th June 2014.

Q. On 30th June, 2014, the bank column of Mohan Kapoor's Cash Book showed a debit balance of ₹ 12,000. On checking the Cash Book with bank statement you find that:-
1. Cheques paid into Bank ₹ 8,000, but out of these only cheques of ₹ 6,500 were cleared and credited by the Bankers upto 30th June.
2. Cheques of ₹ 9,200 were issued but out of these only cheques of ₹ 7,000 were presented for payment upto 30th June.
3. The receipt column of the Cash Book has been undercast by ₹ 200.
4. The Pass Book shows a credit of ₹ 330 as interest on investments collected by bankers and debit of ₹ 60 for bank charges.
5. On 29th June a Customer deposited ₹ 3,000 direct in the bank account but it was entered only in the Pass Book.
Prepare a Bank Reconciliation Statement.

Q. On 30th June 2014 Pass Book showed a balance of ₹ 5,200. Prepare Bank Reconciliation Statement from the following particulars:-
I. Out of total cheques amounting to ₹ 16,000 deposited, cheques amounting to ₹ 9,000 were credited in June 2014, Cheques amounting to ₹ 3,000 were credited in July 2014, and the rest have not been collected so far.
II. Out of total cheques amounting to ₹ 45,000 drawn, cheques amounting to ₹ 7,500 were presented in June 2014, Cheques amounting to ₹ 18,000 were presented in July 2014, and the rest have not been presented so far.
III. Amount wrongly credited by bank ₹ 3,400.
IV. Payment side of the Cash Book has been undercast by ₹ 200.
V. Cheques recorded in the Cash Book in June 2014 but sent to bank in July 2014 ₹ 2,500.
VI. A cheque of ₹ 20,000 deposited in the bank has been dishonoured but no intimation was received till June 2014.

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