When cheques received from a customer are deposited into the bank, an entry is made on the debit side of cash book in the bank column.

True

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False

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Prepare a Bank Reconciliation Statement as on 30^thJune 2011 from the following details-
(i) Pass Book shows an overdraft of Rs 6,000
(ii) Bills Receivable amounting to Rs 3,500 discounted with the Bank, later dishonored, but not recorded in the Cash Book due to lack of information.
(iii) Cheques deposited into the Bank but not realized Rs 15,000
(iv) Cheques amounting to Rs 2,500 issued but not debited by Bank.
(v) Total of Cash Book debit side Bank column was short by Rs 560.
(vi) Transferred Rs 4,000 from current Account of fixed Deposit Account was not recorded in the Cash Book
(vii) Our customer directly deposited Rs 4,500 in our Bank A/c

State whether the following statements are TRUE or FALSE :

1. Total of payments side can be greater than total of receipts side in case of bank column.
2. Purchase of asset or stationery on credit is recorded in purchase book.
3. When goods are returned by buyer to seller, buyer sends a debit note.
4. Cheque received and deposited into bank on the same day is a contra entry.
5. Simple petty cash book is not very popular.
6. Interest on overdraft charged by bank is recorded in the cash column.
7. It is not necessary to record dishonor of cheques in the cash book.
8. Cheque book facility is available for fixed deposit account.
9. Businessman generally operates savings bank account.
10. A cash book is both a journal as well as ledger.
11. Cash book is a book of original entry.
12. Cash discount allowed is recorded on the debit side of cash book
13. Credit transactions are never recorded in cash book.
14. Endorsed cheques are always recorded on the payment side in the bank column.
15. A person who endorses the cheque is known as endorser.

Q. Prepare Bank Reconciliation Statement as on 30th September, 2016 from the following particulars:

	₹
(i) Bank Balance as per Pass Book.	10,000
(ii) Cheque deposited into bank but no entry was passed in Cash Book.	500
(iii) Cheque received and entered in Cash Book but not sent to bank.	1,200
(iv) Insurance premium paid directly by the bank.	800
(v) Bank charges entered twice in the Cash Book.	20
(vi) Cheque received entered twice in Cash Book.	1,000
(vii) Bill discounted dishonoured not recorded in the cash book.	5,000

Q. On 31st March, 2015 the Cash Book of Gopal disclosed a balance of ₹ 12,580. On checking entries in the Cash Book with the bank statement, it was ascertained that:
(i) Cheques amounting to ₹ 18,000 were drawn on 25th March, of which cheques of ₹ 4,800 were cashed before 31st March.
(ii) Out of cheques received and entered in the bank column of the Cash Book for ₹ 18,000; ₹ 16,000 sent to bank but Pass Book recorded ₹ 6,200 after the date.
(iii) An amount of ₹ 5,000 paid directly into the merchant's account by a customer was not entered in the Cash Book.
(iv) The bank erroneously debited Gopal's Account for a cheque of ₹ 1,700.
(v) On 31st March, cash was deposited into the bank ₹ 12,720 but the cashier debited the bank account with ₹ 12,270 by mistake.
(vi) Dividend collected by bank on our behalf ₹ 570 does not appear in the Cash Book.
(viii) ₹ 300 is entered in the bank statement as bank charges. This was recorded as ₹ 200 in the cash book.
You are required:
(i) to prepare the Amended Cash Book, and
(ii) then prepare a Bank Reconciliation Statement.

Q. Cash Book shows a balance of ₹ 12,500. On comparing the Cash Book with the Pass Book, following discrepancies were noted:

		₹
(i)	Cheques issued but not yet presented for payment.	6,000
(ii)	Cheques deposited in the bank but not collected.	9,000
(iii)	Bank paid insurance premium.	5,000
(iv)	Bank charges.	300
(v)	Directly deposited by a customer.	8,000
(vi)	Interest on investment collected by bank.	2,000
(vii)	Cash discount allowed of ₹ 200 was recorded on the debit side of the Bank column.

Prepare Bank Reconciliation Statement.

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