Question

On 31st March, 2015 the Cash Book of Gopal disclosed a balance of ₹ 12,580. On checking entries in the Cash Book with the bank statement, it was ascertained that:
(i) Cheques amounting to ₹ 18,000 were drawn on 25th March, of which cheques of ₹ 4,800 were cashed before 31st March.
(ii) Out of cheques received and entered in the bank column of the Cash Book for ₹ 18,000; ₹ 16,000 sent to bank but Pass Book recorded ₹ 6,200 after the date.
(iii) An amount of ₹ 5,000 paid directly into the merchant's account by a customer was not entered in the Cash Book.
(iv) The bank erroneously debited Gopal's Account for a cheque of ₹ 1,700.
(v) On 31st March, cash was deposited into the bank ₹ 12,720 but the cashier debited the bank account with ₹ 12,270 by mistake.
(vi) Dividend collected by bank on our behalf ₹ 570 does not appear in the Cash Book.
(viii) ₹ 300 is entered in the bank statement as bank charges. This was recorded as ₹ 200 in the cash book.
You are required:
(i) to prepare the Amended Cash Book, and
(ii) then prepare a Bank Reconciliation Statement.

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		12,580	(vii)	Bank Charges		100
(v)		Cheques deposited undercasted (12,720 – 12,270)		450		Balance c/d		18,500
(iii)		Customer’s A/c (Direct deposit by customer)		5,000
(vi)		Dividend		570
				18,600				18,600

Bank Reconciliation Statement as on March 31, 2015
S. No.	Particulars	Plus Items (Rs)	Minus Items (Rs)
	Debit Balance as per Amended Cash Book	18,500
	Add: (i) Cheque issued but not presented (18,000 – 4,800)	13,200
	Less: (ii) Cheque deposited but not credited		6,200
	(ii) Cheque recorded in cash book but not sent to bank		2,000
	(iv) Amount wrongly debited by bank		1,700
	Credit Balance as per Pass Book		21,800
		31,700	31,700