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Loan and Rent

On 31st Decem...

Question

On 31st December, 2014 my Cash Book showed a credit balance of ₹ 8,800. I had paid into Bank three cheques amounting to ₹ 6,000 on 24th December of which I found ₹ 3,200 have been credited in the Pass Book under date 5th January 2015. I had issued cheques amounting to ₹ 8,000 before 31st December of which I found ₹ 2,500 have been debited in the Pass Book after 1st January 2015. I find a debit of ₹ 50 in respect of bank charges in the Pass Book which I have adjusted in the Cash Book on 31st Dec. There is a credit of ₹ 360 for interest on securities in the Pass Book which remains to be adjusted. A cheque of ₹ 1,200 deposited into bank has been dishonoured.
Prepare Bank Reconciliation Statement as on 31st Dec. 2014.

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Solution

Bank Reconciliation Statement
as on December 31, 2014

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

Credit Balance (Overdraft) as per Cash Book 8,800

Add: Cheque issued but not presented for payment
2,500

Bank collected interest on securities
360

Less: Cheque deposited but not credited by Bank
3,200

Cheque dishonoured
1,200

Debit Balance (Overdraft) as per Pass Book 10,340

13,200 13,200

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Q. The Cash Book of a merchant showed an overdraft balance of ₹ 15,700 on 31st December 2014. On comparing it with the Pass Book, the following differences were noted:
(i) Cheques amounting to ₹ 12,250 were deposited into the bank, out of which cheques for ₹ 7,000 have been credited in the Pass Book on 2nd January, 2015 and one cheque of ₹ 1,200 was returned by the bank on 3rd January as dishonoured.
(ii) Cheques were issued amounting to ₹ 8,300 of which cheques for ₹ 2,000 have been cashed upto 31st Dec.
(iii) A cheque of ₹ 4,250 issued to a creditor, has been entered in the Cash Book as ₹ 4,520.
(iv) Bank charges of ₹ 180 on 30th November 2014 and ₹ 240 on 30th December 2014 have not been entered in the Cash Book.
(v) A B/R for ₹ 6,000 discounted with the bank is entered in the Cash Book without recording the discount charges of ₹ 300.
(vi) A cheque for ₹ 2,000 deposited into the bank appear in the Pass Book, but not recorded in the Cash Book.
(vii) A cheque for ₹ 3,700 deposited into the bank appear in the Pass Book, was recorded in the cash column of the Cash book.
You are required:
(i) to make appropriate adjustments in the cash book, bringing down the correct balance, and
(ii) to prepare a bank reconciliation statement with the adjusted balance.

Q. On 31st December, 2014, pass book shows debit balance of ₹ 7,500. From the following particulars, prepare a Bank Reconciliation Statement:
(a) Cheques paid in for collection amounted to ₹ 20,600 but cheques of ₹ 7,800 were credited on 3rd January, 2015.
(b) A cheque of ₹ 1,000 debited in cash book was omitted to be banked.
(c) Cheques of ₹ 7,800 were drawn on 27th December of which cheques of ₹ 2,400 were cashed upto 31st December.
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(e) Bank charged interest on Overdraft ₹ 650.

Q. On 31st December, 2014 the Cash Book of Basu showed an overdraft of ₹ 18,000 with the Bank of India. The balance did not agree with balance as shown by the Bank Pass Book and you find that Basu had paid into the Bank on 26th December four cheques for ₹ 10,000; ₹ 12,000; ₹ 6,000 and ₹ 8,000. Of these the cheque for ₹ 6,000 was credited by the bank in January, 2015. Basu had issued on 24th December three cheques for ₹ 15,000, ₹ 12,000, and ₹ 7,000. The first two cheques were presented to the bank for payment in December and the third in January, 2015.
You also find that on 31st December, 2014, the bank had debited Basu's Account for ₹ 500 for interest and ₹ 20 for charges but Basu has not recorded these amounts in his books.
You are required to prepare a Bank Reconciliation Statement as on 31st December, 2014 and ascertain the balance as per bank Pass Book.

Q. Prepare a Bank Reconciliation Statement from the following particulars:-
On 31st December 2014, I had an overdraft of ₹ 750 as shown by my Pass Book. I had issued cheques amounting to ₹ 250 of which ₹ 200 worth only seem to have been presented for payment. Cheques amounting to ₹ 100 had been paid in by me on 30th December, but of these only ₹ 75 were credited in the Pass Book. I also find that a cheque for ₹ 10 which I had debited to bank account in my books has been omitted to be banked. There is a debit of ₹ 25 in my Pass Book for interest.

An entry of ₹ 30 of a payment by a customer direct into the bank appears in the Pass Book. My Pass Book also shows a credit of ₹ 60 to my account for interest on investments directly collected by my bankers.

Q. From the following particulars, prepare a Bank Reconciliation Statement of Sh. Yadav on 31st December 2014:-
Balance as per Pass Book on 31st December, 2014 is ₹ 11,000. Cheques for ₹ 6,200 were issued during the month of December but of these cheques for ₹ 900 were presented in the month of January, 2015 and one cheque for ₹ 500 was not presented for payment. Cheque and cash amounting to ₹ 5,700 were deposited in bank during December but credit was given for ₹ 4,700 only. A customer had deposited ₹ 850 into the bank directly. The bank has credited the merchant for ₹ 150 as interest and has debited him for ₹ 30 as bank charges, for which there are no corresponding entries in Cash Book.

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