Question

On 31st March, 2015 the bank column of the Cash Book of Mr. Rajesh showed a debit balance of ₹ 5,200. On examining the Pass Book you find that:
(i) Cheques of ₹ 20,000 were sent to bank for collection; Out of these cheques of ₹ 4,000 and of ₹ 5,000 were credited respectively on 5th April and 6th April respectively and the remaining cheques were credited before 31st March.
(ii) A cheque for ₹ 7,500 received from a customer although entered in the bank column of the Cash Book, was omitted to be paid into the bank.
(iii) Cheques drawn for ₹ 25,000 were not presented for payment.
(iv) Credit side of the bank column of the Cash Book was overcast by ₹ 100.
(v) A B/P for ₹3,600 has been paid by the bank, but not yet recorded in the Cash Book.
(vi) No entry has been made in the Cash Book to record the dishonour on 28th March 2015, of a cheque for ₹ 5,400 received from a customer.
(vii) A cheque for ₹ 2,500 issued to a creditor was wrongly entered in the cash column for the Cash Book.
(viii) In the Cash Book, bank charges of ₹ 200 were entered twice while another bank charge of ₹ 500 was not recorded at all.
You are required to show the necessary corrections in the Cash Book and to prepare a statement reconciling the amended cash balance with the shown in bank Pass Book as on 31st March 2015.

Answer 1

Adjusted Cash Book (Bank Column only) as on March 31, 2015
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
		Balance b/d		5,200	(v)	Bills Payable A/c		3,600
(iv)		Credit side overcasted		100	(vi)	Customer A/c (Dishonour of Cheque)		5,400
(viii)		Bank Charges A/c (entered twice)		200	(vii)	Supplier’s A/c (Cheque issued recorded in cash column)		2,500
		Balance c/d		6,500	(viii)	Bank Charges A/c		500
				12,000				12,000

Bank Reconciliation Statement as on March 31, 2015
S. No.	Particulars	Plus Items (Rs)	Minus Items (Rs)
	Credit Balance (Overdraft) as per Amended Cash Book		6,500
	Add: (iii) Cheque issued but not presented for payment	25,000
	Less: (i) Cheque deposited but not credited (4,000 + 5,000)		9,000
	(ii) Cheque recorded in cash book but not sent to bank		7,500
	Debit Balance (Overdraft) as per Pass Book		2,000
		25,000	25,000