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Standard XII
Accountancy
Cash Flow from Operating Activities-Indirect Method
Which of the ...
Question

Which of the following items is not to be adjusted in the Amended Cash Book:

A
Bank Charges and Interest charged by Bank
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B
Interest allowed and direct Payments by Bank
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C
Direct payment by our Debtors into the bank
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D
A wrong entry in the Pass Book.
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Solution

The correct option is C A wrong entry in the Pass Book.
An amended cash book is where all the adjustments are done, the starting point being the balance as per cash book. All the errors in the cash book are adjusted in the same. In the given question all the errors are cash book errors or omission except a wrong entry in the pass book. This error has to be adjusted in the passbook and not the cash book.

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Q. Prepare Bank Reconciliation Statement as on 31st March, 2019 from the following particulars:
₹
(i) Bank balance as per Pass Book. 10,000
(ii) Cheque deposited into the Bank, but no entry was passed in the Cash Book. 500
(iii) Cheque received and entered in the Cash Book but not sent to bank. 1,200
(iv) Credit side of the Cash Book bank column cast short. 200
(v) Insurance premium paid directly by the bank under the standing advice. 600
(vi) Bank charges entered twice in the Cash Book. 20
(vii) Cheque issued but not presented to the bank for payment. 500
(viii) Cheque received entered twice in the Cash Book. 1,000
(ix) Bill discounted dishonoured not recorded in the Cash Book. 5,000
(x) Bank had wrongly allowed interest of ₹ 5,000, which was reversed by it on 5th April, 2019.
Q. Prepare Bank Reconciliation Statement as on 31st March, 2018 from the following particulars:
₹
(i) Bank balancle as per Pass Book. 10,000
(ii) Cheque depisited into the Bank, but no entry was passed in the Cash Book. 500
(iii) Cheque redceived and entered in the Cash Book but not sent to bank. 1,200
(iv) Credit side of the Cash Book bank column cast short. 200
(v) Insurance premium paid directly by the bank under the standing advice. 600
(vi) Bank charges entered twice in the Cash Book. 20
(vii) Cheque issued but not presented to the bank for payment. 500
(viii) Cheque received entered twice in the Cash Book. 1,000
(ix) Bill discounted dishonoured not recorded in the Cash Book. 5,000
(x) Bank had wrongly allowed interest of ₹ 5,000, which was reveresed by it on 5th April, 208.
Q. The cash book shows a balance of Rs.11,000 which was different from the pass book balance. The difference is found to be due to a credit entry in pass book amounting to Rs.2,000 for direct payment by a customer and a debit of Rs.250 for bank charges on collection of outstation cheques and other services. What would be the balance as per bank pass book?
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.
Q. On 31st March, 2018, Bank Pass Book of Naresh & Co. showed an overdraft of ₹ 10,700. From the following particulars, prepare Bank Reconciliation Statement:
(i) Cheques issued before 31st March, 2018 but presented for payment after that date amounted to ₹ 900.
(ii) Cheques paid into the bank but not collected and credited unitl 31st March, 2018 amounted to ₹ 2,200.
(iii) Interest on overdraft amounting to ₹ 1,200 did not appear in the Cash Book.
(iii) ₹ 5,000 being interest on investments collected by the bank and credited in the Pass Book were not shown in the Cash Book.
(iv) Bank charges of ₹ 50 were not entered in the Cash Book.
(v) ₹ 800 in respect of dishonoured cheque were intered in the Pass Book but not in the Cash Book.
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