Question No 20 Chapter No 12
20. Prepare the Bank Reconciliation Statement from the following:
Om 31th March 2018, a merchant’s Cashbook showed a credit bank balance of Rs 10,500 but due to the following reasons the passbook showed a difference
- A cheque of Rs 540 issued to Mohan been presented for payment
- A post-dated cheque for Rs 100 has been debited in the bank column of the cash book but under no circumstances was it possible to present it.
- Four cheques of Rs 1,200 sent to the bank has not been collected so far. A cheque of Rs 400 deposited in the bank has been dishonoured.
- As per instructions, the bank paid Rs 50 as fire Insurance premium but the entry has not been made in the cash book .
- There was a debit in the passbook of Rs 15 in respect of bank charges and credit of Rs 25 for interest on current Account but no record exists in the cash book.
- Cheque of Rs 5,000 dated 15th April 2018 issued M& Co., was dishonoured being post-dated. It was also not recorded in the cash books of account yet.
The solution of Question No 20 Chapter No 12: –
|Bank Reconciliation Statement|
|Overdraft as per Cash Book(Cr)||10,500|
|Cheque issued to Mohan but not yet presented for payment||540|
|Cheque deposited into the bank was post-dated cheque so it dishonoured||100|
|Cheque deposited into the bank but not yet credited by the bank||1,200|
|Cheque deposited into bank dishonoured||400|
|Fire insurance premium paid by bank||50|
|Interest on current and bank charges charged by the bank||25||15|
|Balance as per Cash Book||50,450|
(vi) Cheque of Rs 5,000 dated 15th April 2018 issued M& Co., was dishonoured being post-dated. It was also not recorded in the cash books of account yet.
This will not be entered in the bank reconciliation statement because it did not have any effect on the bank account.
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Also, Check out the solved question of previous Chapters: –
- Chapter No. 5 – Accounting Equation
- Chapter No. 6 – Accounting Procedures – Rules of Debit and Credit
- Goods and Services Tax(GST)
- Chapter No. 8 – Journal
- Chapter No. 9 – Ledger
- Chapter No. 10 – Special Purpose Books I – Cash Book