Question

On comparing the cash book with passbook of Naman, it is found that on 31st March 2016, the bank balance of Rs. 40,960 showed by the cash book differs from the bank balance with regard to the following:

(i) Bank charges Rs. 100 on 31st March 2016, are not entered in the cash book.

(ii) On 21st March 2016, a debtor paid Rs. 2,000 into Naman's bank account in settlement of his dues, but no entry was made in the cash book in respect of this.

(iii) Cheques totaling Rs. 12,980 were issued by Naman and duly recorded in the cash book before 31st March 2016 but had not been presented at the bank for payment up to that date.

(iv) A bill for Rs. 6,900 discounted with the bank is entered in the cash book without recording the discount charges of Rs. 800.

(v) Rs. 3,520 is entered in the cash book as paid into the bank on 31st March 2016 but not credited by the bank until the following day.

(vi) No entry has been made in the cash book to record the dishonour on 15th March, 2016 of a cheque for Rs. 650 received from Bhanu.

Prepare a reconciliation statement as on 31st March, 2016.

Answer 1

Bank Reconciliation Statement
as on 31st March. 2016
$\begin{array}{ccccc}& \text{Particulars}& \text{Plus (Rs.)}& \text{Minus (Rs.)}& \\ & \text{Debit/Favourable Balance as per Cash Book}& 40,960& & \\ \text{Add}& \text{Cash deposit by debtor directly in bank account}& 2,000& & \\ & \text{Cheque issued but not presented for payment}& 12,980& & \\ \text{Less}& \text{Bank charges not entered in cash book}& & 100& \\ & \text{Discount charges recorded in bank}& & 800& \\ & \text{Cash deposited in bank but not credited}& & 3,520& \\ & \text{Cheque of Bhanu dishonoured}& & 650& \\ & \text{Credit/Favourable Balance as per Passbook}& & 50,870& \\ & & \underset{–}{\overline{55,940}}& \underset{–}{\overline{55,940}}& \end{array}$