Question

Prepare Bank Reconciliation Statement from the following:
On 31st March, 2018, a merchant's Cash Book showed a credit bank balance of ₹ 10,500 but due to the following reasons the Pass Book showed a difference.
(i) A cheque of ₹ 540 issued to Mohan has not been presented for payment.
(ii) A post-dated cheque for ₹ 100 has been debited in the bank column of the Cash Book but under no circumstances was it possible to prove it.
(iii) Four cheque for ₹ 1,200 sent to the bank have not been collected so far. A cheque of ₹ 400 deposited in the bank has been dishonoured.
(iv) As per instructions, the bank paid ₹ 50 as Fire Insurance premium but the entry has not been made in the Cash Book.
(v) There was a debit in the Pass Book of ₹ 15 in respect of bank charges and a credit of ₹ 25 for interest on Current Account but no record exists in the Cash Book.
(vi) Cheque of ₹ 5,000 dated 15th April, 2018 issued to M & Co. was dishonoured being post dated. It was also not recorded in the books of account yet.

Answer 1

Bank Reconciliation Statement as on March 31,2018
S. No.	Particulars	Plus Items (Rs)	Minus Items (Rs)
	Credit bank balance as per the Cash Book		10,500
(i)	Cheque issued but not presented for payment	540
(ii)	Post-dated Cheque entered in the Cash Book but not deposited in the Bank		100
(iii)	Cheque deposited but not cleared		1,200
	Cheque dishonoured		400
(iv)	Insurance premium paid by bank was not entered in the Cash Book		50
(v)	Bank Charges		15
	Bank allowed Interest	25
	Overdraft as per the Pass Book	11,700
		12,265	12,265

Note: Cheque dated 15th April, 2018 issued to M & Co. dishonoured will have no impact as this statement is as on 31st March 2018.