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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.

2013RsJan.01Cash in hand1,500Jan.05Paid to Ram300Jan.05Discount allowed by him10Jan.08Purchased goods400Jan.10Received from R. Gupta980Jan.10Discount allowed20Jan.16Sold goods400Jan.21Paid to S. Sharma295Jan.21Discount received5Jan.25Paid wages50Jan.31Paid to Narayan in full settlement of his account which shows a creditbalance Rs 400390

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Solution

Bank Reconciliation Statement of Mr. Ramas on 30 Nov.,2012

ParticularsDr.BalanceCr.Balance(Rs) (Rs) (i) Overdraft as per Cash Book45,000(ii) The payment side of the Cash Book was undercast1,500(iii) A cheque drawn on saving account was shown as drawn on current account7,500(iv) Cheques drawn had yet been presented.70,000(v) Cheques sent to the bank but not credited by the bank.60,000(vi) Bank charges as per Bank Statement750(vii) Dividends paid direct into the bank25,000 Overdraft as per Pass Book4,750¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯1,07,250––––––––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯1,07,250––––––––––––––––

Dr. OrCash Book Cr.

DateparticularsL.F.AmountDateParticularsL.FAmount(Rs)(Rs)20122012Jan.01To Balance b/d1,500Jan.05By Ram A/c10300Jan.01To R. Gupta A/c20 980Jan.08By Purchases A/c400Jan.16To Sales A/c400Jan.21By S.Sharma A/c5295Jan.25By Wages A/c 50Jan.31By Narayan A/c10 390Jan.31By Balance c/d1,445¯¯¯¯¯¯¯¯¯¯¯¯ 20 ––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 2,880 ––––––––––––––¯¯¯¯¯¯¯¯¯¯¯¯ 20 ––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 2,880 ––––––––––––––Feb.1To Balance b/d1,445


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Q.

Jagdeep Singh's Cash book on 31st March, 2012 showed an over draft balance of Rs 12,100 on his No. 1 Account at the bank. On investigation it is found that:

(a) Cheque drawn amounting to Rs 4,200 had not been presented to the bank for payment.

(b) Cheque Rs 3,600 entered in the Cash Book and paid into the bank had not been credited by the bank.

(c) The receipts side of the Cash Book had been under cast by Rs 1,000.

(d) Bank charges on' 50 entered on the bank statement had not been entered in the Cash Book.

(e) A cheque for Rs 5,200 drawn on the Account No.1 had been charged by the bank in error to the Account No.2.

(f) A dividend of Rs 300 paid direct to the bank had not been entered in the Cash Book.

(g) A cheque for Rs 700 received from a debtor paid into the bank dishonoured and shown as such by the Bank but no entry of dis honour had been made in the Cash Book.

(h) A cheque of Rs 420, drawn by Bank’s another customer of the same name, had been charged to Jagdeep bank account by error.

You are required:

(i) To show the necessary adjustments to be made in the Cash Book; and

(ii) To prepare a Bank Reconciliation Statement for No.1 Account as at 31st March, 2012.

Jan.1Cash in Hand4,000Cash at Bank12,000Jan.4Sold goods for cash13,200Jan.5Received from Suresh2,500Jan.6Received a Cheque from Ravi and deposited it into Bank.6,400Jan.7Salary paid to office staff by Cheque7,600Jan.10Paid Sudhir by Cheque5,000Jan.12Cash Purchases8,000Jan.16Cash deposited into Bank10,000Jan.20Cash Sales15,100Purchased Machinery and payment made by Cash6,800Jan.21Paid wages for erection of above Machinery400Jan.22Withdrew from Bank for office use7,500Jan.23Received a Cheque from Anil and deposited it into Bank4,600Jan.27Anil's Cheque returned by bank dishonoured4,600Jan.31Paid into Bank12,000

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