Question

On 31st December 2011, the Pass Book of a merchant shows the credit balance to be 3,357. The cheques and drafts sent to the bank but not collected and credited amounted to = 790 and three cheques drawn for RS 300, 150 and 200 respectively were not presented for payment till 31st January next year.

Bank has paid a bill payable amounting to = 1,000 but it has not been entered in the Cash Book and a bill receivable of = 500 which was discounted with the bank was dishonoured by the drawee on due.date.

The bank has charged = 13 as its commission for collecting outstation cheques and has allowed interest = 10 on the trader's balance.

Prepare a Bank Reconciliation Statement and show the balance as shown in the Cash Bank.

Answer 1

Bank Reconciliation Statement
As on 31 Dec. 2011

$\begin{array}{cccc}& \text{Particulars}& \text{+Items}& \text{-Items}\\ & \text{Balance as per pass book}& 3,357& -\\ \left(i\right)& \text{Cheques sent ot bank but not collected}& 790& -\\ \left(ii\right)& \text{Cheques drawn but not presented}& -& 650\\ \left(iii\right)& \text{Payment of B/P made by bank}& 1,000& -\\ \left(iv\right)& \text{Bill dishonoured discounted}& 500& -\\ \left(v\right)& \text{Bank charged commission}& 13& -\\ \left(vi\right)& \text{Interest allowed by bank}& -& 10\\ & \text{Balance as per cash book}& & 5,000\\ & & \underset{–}{\overline{5,660}}& \underset{–}{\overline{5,660}}\end{array}$