Question

On December 31, 2010, the cash book of Mittal Bros showed an overdraft of Rs. 6,920. From the following particulars, prepare a Bank Reconciliation Statement and ascertain the balance as per pass book.

(i) Debited by the bank for Rs. 200 on account of Interest on overdraft and Rs. 50 on account of charges for collecting bills.

(ii) Cheques were drawn but not encashed before December 31, 2010, for Rs. 4,000.

(iii) The bank has collected interest and has credited Rs. 600 in passbook.

(iv) A bill receivable for Rs. 700 previously discounted with the bank had been dishonoured and debited in the passbook.

(v) Cheques paid into the bank but not collected and credited before December 31, 2010, amounted Rs. 6,000.

Answer 1

$\begin{array}{ccc}& \text{Bank Reconciliation Statement of Mittal Bros}& \\ & \text{as on 31st December, 2010}& \end{array}$

$\begin{array}{cccc}S.N.& Particulars& Amt.(+)& Amt.(-)\\ & \text{Overdraft as per Cash Book}& & 6,920\\ \text{(i)}& \text{Interest and collection charges (200 + 50)}& & 250\\ \text{(ii)}& \text{Cheque issued but not presented for payment}& 4,000& \\ \text{(iii)}& \text{Interest collected by bank has not debited in cash book}& 600& \\ \text{(iv)}& \text{Bill discounted with bank dishonoured}& & 700\\ \text{(v)}& \text{Cheque sent to the bank for collection but not collected}& & \\ & \text{and credited by the bank}& & 6,000\\ & \text{Overdaraft as per Pass Book}& \text{9,270}& \\ & & \overline{\underset{–}{13,870}}& \overline{\underset{–}{13,870}}\end{array}$