Question

On checking Ram’s Cash Book with the Bank statement of his overdraft current account for the month of November, 2012, you find the following:

(i) Cash Book showed an overdraft of Rs 45,000.
(ii) The payment side of the Cash Book had been under cast by Rs 1,500.
(iii) A cheque for Rs 7,500 drawn on his saving account has been shown as drawn on his current account.
(iv) Cheques amounting to Rs 70,000 drawn and entered in the Cash Book had not yet been presented.
(v) Cheques amounting to Rs 60,000 sent to the bank for collection,though entered in the Cash Book,had not been credited by the bank.
(vi) Bank charges of Rs 750 as per Bank Statement had not been taken into the Cash Book.
(vii) Dividends of Rs 25,000 had been paid direct into the bank and not entered in the Cash Book. You are required to prepare a Bank Reconciliation Statement on 30th November, 2012.

Or

Enter the following transactions in cash book.

$\begin{array}{ccc}2013& & \text{Rs}\\ \text{Jan.01}& \text{Cash in hand}& 1,500\\ \text{Jan.05}& \text{Paid to Ram}& 300\\ \text{Jan.05}& \text{Discount allowed by him}& 10\\ \text{Jan.08}& \text{Purchased goods}& 400\\ \text{Jan.10}& \text{Received from R. Gupta}& 980\\ \text{Jan.10}& \text{Discount allowed}& 20\\ \text{Jan.16}& \text{Sold goods}& 400\\ \text{Jan.21}& \text{Paid to S. Sharma}& 295\\ \text{Jan.21}& \text{Discount received}& 5\\ \text{Jan.25}& \text{Paid wages}& 50\\ \text{Jan.31}& \text{Paid to Narayan in full settlement of his account which shows a credit}& \\ & \text{balance Rs 400}& 390\end{array}$

Answer 1

$\begin{array}{c}\text{Bank Reconciliation Statement of Mr. Ram}\\ \text{as on 30 Nov.,2012}\end{array}$

$\begin{array}{ccc}\text{Particulars}& \text{Dr.Balance}& \text{Cr.Balance}\\ & \text{(Rs)}& \text{(Rs)}\\ \text{(i) Overdraft as per Cash Book}& & 45,000\\ \text{(ii) The payment side of the Cash Book was undercast}& & 1,500\\ \text{(iii) A cheque drawn on saving account was shown as}& & \\ \text{drawn on current account}& 7,500& \\ \text{(iv) Cheques drawn had yet been presented.}& 70,000& \\ \text{(v) Cheques sent to the bank but not credited by the bank.}& & 60,000\\ \text{(vi) Bank charges as per Bank Statement}& & 750\\ \text{(vii) Dividends paid direct into the bank}& 25,000& \\ \text{Overdraft as per Pass Book}& 4,750& \\ & \overline{\underset{–}{\underset{–}{1,07,250}}}& \overline{\underset{–}{\underset{–}{1,07,250}}}\end{array}$

$\text{Dr.}\begin{array}{c}\text{Or}\\ \text{Cash Book}\end{array}\text{Cr.}$

$\begin{array}{cccccccc}\text{Date}& \text{particulars}& \text{L.F.}& \text{Amount}& \text{Date}& \text{Particulars}& \text{L.F}& \text{Amount}\\ & & & \text{(Rs)}& & & & \text{(Rs)}\\ 2012& & & & 2012& & & \\ \text{Jan.01}& \text{To Balance b/d}& & 1,500& \text{Jan.05}& \text{By Ram A/c}& 10& 300\\ \text{Jan.01}& \text{To R. Gupta A/c}& 20& 980& \text{Jan.08}& \text{By Purchases A/c}& & 400\\ \text{Jan.16}& \text{To Sales A/c}& & 400& \text{Jan.21}& \text{By S.Sharma A/c}& 5& 295\\ & & & & \text{Jan.25}& \text{By Wages A/c}& & 50\\ & & & & \text{Jan.31}& \text{By Narayan A/c}& 10& 390\\ & & & & \text{Jan.31}& \text{By Balance c/d}& & 1,445\\ & & \overline{\underset{–}{\underset{–}{20}}}& \overline{\underset{–}{\underset{–}{2,880}}}& & & \overline{\underset{–}{\underset{–}{20}}}& \overline{\underset{–}{\underset{–}{2,880}}}\\ \text{Feb.1}& \text{To Balance b/d}& & 1,445& & & & \end{array}$