Which of the following types of errors are not detected during bank reconciliation?

Cash embezzlement by the cashier

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Cheque deposited but not credited by bank

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Casting mistakes in bank column of cash book

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Interest or commission charged by the bank but not accounted for in cash book

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Solution

The correct option is A
Cash embezzlement by the cashier

Cash embezzlement by cashier shall not be detected during bank reconciliation because bank reconciliation detects the error in bank balance only.

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Following are the entries recorded in the Cash Book (Book Column) of Deepali Traders for the month ended 31st March, 2011.

Cash Book (Bank Column Only)
Dr.			Cr.
Date	Receipts	Rs	Date	Payments	Rs
2011 Mar. 15 21 22 31	To Cash A/c To Razak’s A/c To Kavita’s A/c To Balance c/d	36,000 24,000 10,000 7,640	2011 Mar.1 4 6 15 20	By Balance b/d By Jonny’s A/c By Roma’s A/c By Ashish ‘s A/c By Patil’s A/c	40,000 2,000 400 240 35,000
		77,640			77,640

On 31^st March 2011, Deepali Trader’s received the Bank Statement, on comparing it with the Cash Book following information was available.
(i) Cheque of Rs 10,000 deposited into the Bank not Credited by Bank.
(ii) Bank charges debited by Bank not entered in the Cash Book Rs 340.
(iii) Interest on Ovendraft debited Rs 1,000 by Bank but not recorded in the Cash Book
(iv) Bank transferred and credited Rs 200 in the Pass Book, not recorded in the Cash Book
(v) Cheques issued but not presented to the Bank Rs 37,400
(vi) Interest on Securities Rs 1,080 and Dividend on shares Rs 1,000 collected and Credited by Bank, not entered in the Cash Book.

Q. From the following particulars a Bank Reconciliation Statement for the year ending on 31^stMarch 2011

(i) Bank balance as per Cash Book Rs 8,600
(ii) Cheques of Rs 4,000 issued but not presented for payment
(iii) Bank debited bank charges Rs 200
(iv) Cheque of Rs 2,800 deposited into the Bank but not Credited by Bank
(v) Bank paid Insurance Premium on our behalf directly Rs 2,500 not recorded in the Cash Book.
(vi) Bank Credited interest on investment Rs 1,900 but not recorded in the Cash Book.

The cash book shows a bank balance of Rs. 7,800. On comparing the cash book with Passbook, the following discrepancies were noted

(i) Cheque deposited in the bank but not credited, Rs. 3,000.

(ii) Cheque issued but not yet presented for payment, Rs. 1,500.

(iii) Insurance premium paid by the bank, Rs. 2,000.

(iv) Bank interest credit by the bank, Rs. 400.

(v) Bank charges, Rs. 100.

(vi) Directly deposited by a customer, Rs. 4,000.

Q. The cash book shows a bank balance of Rs.7,800. On comparing the cash book with pass book, the following discrepancies were noted
i) Cheque deposited in bank not credited,Rs.3,000.
ii) Cheque issued but not yet present for payment,Rs.1,500.
iii) Insurance premium paid by the bank, Rs.2,000.
iv) Bank interest credit by the bank, Rs.400.
v) Bank charges,Rs.100.
vi) Directly deposited by a customer,Rs.4,000.

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.

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Which of the following types of errors are not detected during bank reconciliation?

The correct option is A Cash embezzlement by the cashier Cash embezzlement by cashier shall not be detected during bank reconciliation because bank reconciliation detects the error in bank balance only.

The correct option is A
Cash embezzlement by the cashier

Cash embezzlement by cashier shall not be detected during bank reconciliation because bank reconciliation detects the error in bank balance only.