1
Question
On 31st March, 2019 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 2019, 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 of 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 that shown in bank Pass Book.
(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 2019, 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 of 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 that shown in bank Pass Book.
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Solution
Adjusted Cash Book (Bank Column only)
as on March 31, 2019
Dr.
Cr.
Date
Particulars
J.F.
Amount (₹)
Date
Particulars
J.F.
Amount (₹)
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, 2019
S. No.
Particulars
Plus Items
(₹)
Minus Items (₹)
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
| Adjusted Cash Book (Bank Column only) as on March 31, 2019 |
|||||||||
| Dr. | Cr. | ||||||||
| Date | Particulars | J.F. | Amount (₹) | Date | Particulars | J.F. | Amount (₹) | ||
| 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, 2019 |
|||
| S. No. | Particulars | Plus Items (₹) |
Minus Items (₹) |
| 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 | ||
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