Question

On comparing the cash book with passbook of Naman, it is found that on March 31, 2010, 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 March 31, 2010, are not entered in the cash book.

(ii) On March 21, 2010, a debtor paid Rs. 2,000 into the company's bank in settlement of his account, but no entry was made in the cash book of the company in respect of this.

(iii) Cheques totalling Rs. 12,980 were issued by the company and duly recorded in the cash book before March 31, 2010, but had not been presented at the bank for payment until after that date.

(iv) A bill for Rs. 6,900 discounted with the bank is entered in the cash book by recording the discount charge of Rs. 800.

(v) Rs. 3,520 is entered in the cash book as paid into the bank on March 31st, 2010, 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 March 15, 2010, of a cheque for Rs. 650 received from Bhanu.

Prepare a reconciliation statement as on March 31, 2010.

Answer 1

$\begin{array}{cc}& \text{Bank Reconciliation Statement of Mr Naman}\\ & \text{as on 31st March, 2010}\end{array}$

$\begin{array}{cccc}\text{S.N.}& \text{Particulars}& \text{Amt.(+)}& \text{Amt.(-)}\\ & \text{Balance as per Cash Book}& \text{40,960}& \\ \left(i\right)& \text{Bank charges not entered in cash book}& & \text{100}\\ \text{(ii)}& \text{Cash deposit by debtor in bank account}& \text{2,000}& \\ \text{(iii)}& \text{Cheque issued but not presented for payment}& \text{12,980}& \\ \text{(iv)}& \text{Discount charges recorded in bank}& & \text{800}\\ \text{(v)}& \text{Cash deposit in bank but not credited}& & \text{3,520}\\ \text{(vi)}& \text{Cheque of Bhanu dishonoured}& & \text{650}\\ & \text{Balance as per Pass book}& & \text{50,870}\\ & & \underset{–}{\overline{55,940}}& \underset{–}{\overline{55,940}}\end{array}$