Question

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.

Answer 1

Bank Reconciliation Statement as on June 30, 2014
S. No.	Particulars	Plus Items (Rs)	Minus Items (Rs)
	Credit Balance (Overdraft) as per Cash Book		2,500
	Add: 2. Cheques issued but not presented (10,000 – 3,600)	6,400
	5. Amount directly deposited by customer	1,000
	Less: 1. Cheque paid into bank but not credited (14,600 – 12,200)		2,400
	4. Bank charges		10
	4. Bank interest		50
	3. Cheque not sent to bank for collection		500
	6. Insurance premium paid by bank as per standing instructions		400
	Credit Balance as per Pass Book		1,540
		7,400	7,400