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Question No 25 Chapter No 11
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25. The Cash Book of a merchant showed an overdraft balance of 15,700 on 31st December 2018. On comparing it with the Pass Book, the following differences were noted:
(i) Cheques amounting to 12,250 were deposited into the bank, out of which cheques for 8,200 have been credited in the Pass Book on 2nd January, 2019.
(ii) Cheques were issued amounting to 8,300 of which cheques for 2,000 have been cashed upto 31st Dec.
(iii) A cheque of 4,250 issued to a creditor, has been entered in the Cash Book as 4,520.
(iv) Bank charges of 180 on 30th November 2018 and 240 on 30th December 2018 have not been entered in the Cash Book.
(v) A B/R for 6,000 discounted with the bank is entered in the Cash Book without recording the discount charges of 300.
(vi) A cheque for 2,000 deposited into the bank appear in the Pass Book, but not recorded in the Cash Book.
(vii) A cheque for 3,700 deposited into the bank appear in the Pass Book, was recorded in the cash column of the Cash book.
You are required:
(i) to make appropriate adjustments in the cash book, bringing down the correct balance, and
(ii) to prepare a bank reconciliation statement with the adjusted balance.
The solution of Question No 25 Chapter No 11: –
| Dr. | Adjusted Cash Book (Bank Column only) as of March 31, 2019 | Cr. | |||||
| Date | Particulars | J.F. | Amount | Date | Particulars | J.F. | Amount |
| (iii) | To Cheque issued overcasted (4,520 – 4,250) | 12,580 | By Balance b/d | 15,700 | |||
| (v) | To Cheques deposited undercasted (12,720 – 12,270) | 450 | (vii) | By Bank Charges A/c (180 + 240) | 420 | ||
| (iii) | Customer’s A/c (cheque not recorded in bank column) | 5,000 | (vii) | By Discounting charges A/c (not recorded) | 300 | ||
| To Balance c/d | 10,450 | ||||||
| 16,420 | 16,420 | ||||||
| Bank Reconciliation Statement | ||
| Particular | Plus Items (Rs) | Minus Items(Rs) |
| Credit Balance (Overdraft) as per Amended Cash Book | 10,450 | |
| Add: (ii) Cheques issued but not presented (8,300 – 2,000) | 6,300 | |
| Less: (ii) Cheque deposited but not credited | 8,200 | |
| Debit Balance(overdraft) as per Pass Book | 12,350 | |
| 18,650 | 18,650 | |
Bank Reconciliation Statement | Process | Illustration |
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D K Goel – New ISC Accountancy -(Class 11 – ICSE)- Solution
- Chapter 1 Evolution of Accounting & Basic Accounting Terms
- Chapter 2 Accounting Equations
- Chapter 3 Meaning and Objectives of Accounting
- Chapter 4 Double Entry System
- Chapter 5 Books of Original Entry – Journal
- Chapter 6 Accounting for Goods and Service Tax (GST) (Coming soon)
- Chapter 7 Books of Original Entry – Cash Book (Coming soon)
- Chapter 8 Books of Original Entry – Special Purpose Subsidiary Books (Coming soon)
- Chapter 9 Ledger (Coming soon)
- Chapter 10 Trial Balance and Errors (Coming soon)
- Chapter 11 Bank Reconciliation Statement (Coming soon)
- Chapter 12 Depreciation (Coming soon)
- Chapter 13 Bills of Exchange (Coming soon)
- Chapter 14 Generally Accepted Accounting Principles(GAAP)
- Chapter 15 Bases of Accounting
- Chapter 16 Accounting Standards and International Financial Reporting Standard(IFRS) (Coming soon)
- Chapter 17 Capital and Revenue
- Chapter 18 Provisions and Reserves
- Chapter 19 Final Accounts (Coming soon)
- Chapter 20 Final Accounts – With Adjustments (Coming soon)
- Chapter 21 Errors and their Rectification (Coming soon)
- Chapter 22 Accounts from Incomplete Records – Single Entry System (Coming soon)
- Chapter 23 Accounts of Not-for-Profit Organisations (Coming soon)
- Chapter 24 Computerised Accounting System (Coming soon)
- Chapter 25 Introduction to Accounting Information System (Coming soon)
Check out the Accountancy Class +1 by D.K. Goal (Arya Publication) from their official Site.
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