Question

On 30th September 2016, my cash book (bank column of account number 1) showed a bank overdraft of Rs. 98,700. Ongoing through the bank passbook for reconciling the balance, I found the following

(i) Out of cheques drawn on 26th September, those for Rs. 7,400 were cashed by the bankers on 2nd October.

(ii) A crossed cheque for Rs. 1,500 given to Abdul was returned by him and a bearer cheque was issued to him in lieu on 1st October.

(iii) Cash and cheques amounting to Rs. 6,800 were deposited in the bank on 29th September, but cheques worth Rs. 2,600 were cleared by the bank on 1st October and one cheque for Rs. 500 was returned by them as dishonoured on the latter date.

(iv) According to my standing instructions, the bankers have on 30th September, paid Rs.640 as interest to my creditors, paid a quarterly premium on my policy amounting to Rs320 and have paid a second call of Rs. 1,200 on shares held by me and lodged with the bankers for safe custody. They have also received Rs. 300 as a dividend on my shares and recovered an insurance claim of Rs. 1,600 and their charges and commission on the above being Rs. 30. On receipt of information of the above transactions, I have passed necessary entries in my cash book on 1st October.

(v) My bankers seem to have given me a wrong credit for Rs. 1,000 paid in by me in account number 2 and a wrong debit in respect of a cheque for Rs. 600 drawn against my account number 2.

Prepare a bank reconciliation statement as on 30th September 2016.

Answer 1

Bank Reconciliation Statement
as on 30th September. 2016
$\begin{array}{cccc}& \text{Particulars}& \text{Plus (Rs.)}& \text{Minus (Rs.)}\\ & \text{Overdraft/Credit/Unfavourable Balance as per Cash Book}& & 98,700\\ \text{Add}& \text{Cheques issued Out not Presented for payment}& 7,400& \\ & \text{Crossed cheque issued to Abdul not presented for payment}& 1,500& \\ & \text{Amounts cottected by the bank on my behalf but not entered in the cash book}& & \\ & \text{Dividend}300& & \\ & \text{Insurance claim}(1600-30)\underset{–}{1,570}& 1,870& \\ & \text{Amount paid in account number 2 credited by the bank wrongly to this account}& 1,000& \\ \text{Less}& \text{Cheques deposited In the bank but not cleared}(Rs.2,600+Rs.500)& & 3,100\\ & \text{Payments made by the bank on my behalf but not entered in the cash book}& & \\ & \text{Interest}640& & \\ & \text{Premium}320& & \\ & Secondcall\underset{–}{1,200}& & 2,160\\ & \text{Cheques issued against account number 2 but wrongly}& & \\ & \text{debited by the bank to this account}& & \text{6}00\\ & \text{Overdraft/Debit/Unfavourable Balance as per Passbook}& 92,790& \\ & & \underset{–}{\overline{1,04,560}}& \underset{–}{\overline{1,04,560}}\end{array}$