On Checking Ram's Cash Book with the bank statement of his overdraft current account for the month of November 2014, you find the following:
(a) Cash Book showed an overdraft of ₹ 16,200.
(b) The payment side of the Cash Book had been undercast by ₹ 500.
(c) A cheque for ₹ 13,600 drawn on his saving deposit account has been wrongly recorded as drawn on current account in the Cash Book.
(d) Cheques amounting to ₹ 18,800 drawn and entered in the Cash Book had not been presented.
(e) Cheques amounting to ₹ 7,500 sent to the bank for collection though entered in the Cash Book, had not been credited by the bank.
(f) Bank charge of ₹ 150 as per bank statement of account had not been taken in the Cash Book.
(g) Dividend of the amount of ₹ 420 had been paid direct to the bank and not entered in the Cash Book.
You are requested to arrive at the balance as it would appear in the bank statement as on 30th November 2014.

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Solution

Bank Reconciliation Statement
as on November 30, 2014

S. No. Particulars Plus Items (Rs) Minus Items (Rs)

Credit Balance (Overdraft) as per Cash Book
16,200

Add: (b) Cheque drawn on Saving A/c recorded as drawn on Current A/c
13,600

(c) Cheque issued but not presented
18,800

(f) Dividend collected by Bank
420

Less: (a) Payment side of Cash Book undercasted
500

(d) Cheque deposited but not credited
7,500

(e) Bank charges
150

Credit Balance as per Pass Book 8,470

32,820 32,820

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Similar questions

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.

Enter the following transactions in cash book.

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

Q. Comparing Ram's Cash Book with the Bank Statement of his overdraft account for the month of November, 2017, find the following:
(i) Cash Book showed an overdraft of Rs. 45,000.
(ii) The payment side of the cash book had been undercast by 1,500.
(iii) A cheque for Rs. 7,500 drawn on his current account.
(iv) Cheques amounting to Rs. 70,000 drawn and entered in the Cash Book have not been presented.
(v) Cheques amounting to Rs. 60,000 sent to the bank for collection, which though entered in the cash book have not been credited by bank.
(vi) Bank charges of Rs. 750 as per Bank Statement have not been recorded in the cash book.
(vii) Dividends amounting to Rs, 35,000 have been paid directly into the bank and not entered in the Cash Book.
You are required to prepare Bank Reconciliation Statement on 30th November, 2017.

Q. The Cash Book of a merchant showed an overdraft balance of ₹ 15,700 on 31st December 2014. On comparing it with the Pass Book, the following differences were noted:
(i) Cheques amounting to ₹ 12,250 were deposited into the bank, out of which cheques for ₹ 7,000 have been credited in the Pass Book on 2nd January, 2015 and one cheque of ₹ 1,200 was returned by the bank on 3rd January as dishonoured.
(ii) Cheques were issued amounting to ₹ 8,300 of which cheques for ₹ 2,000 have been cashed upto 31st Dec.
(iii) A cheque of ₹ 4,250 issued to a creditor, has been entered in the Cash Book as ₹ 4,520.
(iv) Bank charges of ₹ 180 on 30th November 2014 and ₹ 240 on 30th December 2014 have not been entered in the Cash Book.
(v) A B/R for ₹ 6,000 discounted with the bank is entered in the Cash Book without recording the discount charges of ₹ 300.
(vi) A cheque for ₹ 2,000 deposited into the bank appear in the Pass Book, but not recorded in the Cash Book.
(vii) A cheque for ₹ 3,700 deposited into the bank appear in the Pass Book, was recorded in the cash column of the Cash book.
You are required:
(i) to make appropriate adjustments in the cash book, bringing down the correct balance, and
(ii) to prepare a bank reconciliation statement with the adjusted balance.

Q. On 30th June 2014, the Cash Book of a trader shows a bank overdraft of ₹ 2,500. Following informations are available:-
1. Cheques amounting to ₹ 14,600 had been paid to the bank, but of these only ₹ 12,200 were credited in the Pass Book, up to 30th June, 2014.
2. He had also issued cheques amounting to ₹ 10,000, out of which only ₹ 3,600 had been presented for payment.
3. A cheque of ₹ 500 which he had debited to the bank account was not sent to bank for collection by mistake.
4. There is a debit in the Pass Book of ₹ 10 for Bank Charges and ₹ 50 for interest.
5. A customer directly paid into his bank ₹ 1,000, but it was not shown in the Cash Book.
6. Bank has paid insurance premium of ₹ 400 according to his instructions, but this is not recorded in the Cash Book.
Prepare a Bank Reconciliation Statement.

Q. While comparing the cash book of Mayank with the bank pass book on 30th September, 2016 you find the following:
(i) The bank pass book showed a debit balance of ₹ 15,000.
(ii) Bank paid insurance premium ₹ 2,000, but it was recorded as ₹ 200 only in cash book.
(iii) Cheques issued in favour of suppliers in September, 2016 amounted to ₹ 55,000, but cheques for ₹ 50,000 only were presented for payment upto 30th September, 2016.
(iv) Direct deposit of ₹ 10,000 in Mayank's bank account by a customer on 25th September, 2016 had not been recorded in the cash book.
(v) Dividend collected by bank, but not recorded in cash book ₹ 1,000.
(vi) Bank charged ₹ 300 for its services, but they were yet to be recorded in cash book.
(vii) Cheques amounting to ₹ 78,000 were deposited with bank in the last week of September, 2016 but cheques for ₹ 51,000 only had been cleared before 1st October, 2016.
Prepare the bank reconciliation statement ascertaining bank balance/overdraft as per cash book.

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Bank Reconciliation Statement as on November 30, 2014
S. No.	Particulars	Plus Items (Rs)	Minus Items (Rs)
	Credit Balance (Overdraft) as per Cash Book		16,200
	Add: (b) Cheque drawn on Saving A/c recorded as drawn on Current A/c	13,600
	(c) Cheque issued but not presented	18,800
	(f) Dividend collected by Bank	420

	Less: (a) Payment side of Cash Book undercasted		500
	(d) Cheque deposited but not credited		7,500
	(e) Bank charges		150
	Credit Balance as per Pass Book		8,470
		32,820	32,820