Question

On 31st December, 2016, the cash book of Mittal Bros showed an overdraft of Rs. 6,920. From the following particulars, prepare a bank reconciliation statement and ascertain the balance as per pass book.

(i) Debited by bank Rs. 200 on account of interest on overdraft and Rs. 50 on account of charges for collecting bills.

(ii) cheque drawn but not encashed before 31st December 2016 for Rs. 4,000.

(iii) The bank has collected interest and has credited Rs. 600 in passbook.

(iv) A bill receivable for Rs. 700 previously discounted with the bank, had been dishonoured and debited in the passbook.

(v) Cheque paid into bank but not collected and credited before 31st December 2016 amounted to Rs. 6,000.

Answer 1

Bank Reconciliation Statement
as on 31st December.
$\begin{array}{cccc}& \text{Particulars}& \text{Plus (Rs.)}& \text{Minus (Rs.)}\\ & \text{Overdraft/Credit/Unfavourable Balance as per Cash Book}& & 6,920\\ \text{Add}& \text{Cheque issued but not presented for payment}& 4,000& \\ & \text{Interest collected by bank has not been debited in cash book}& 600& \\ \text{Less}& \text{Interest and collection charges debited by bank (200 + 50)}& & 250\\ & \text{Bill discounted with bank dishonoured}& & 700\\ & \text{Cheque sent to the bank for collection but not collected and credited by the bank}& & 6,000\\ & \text{Overdraft/Debit/Unfavourable Balance as per Passbook}& 9,270& \\ & & \underset{–}{\overline{13,870}}& \underset{–}{\overline{13,870}}\end{array}$