Question

On 30th November, 2018, the Cash Book of Mr. Hari showed an overdrawn position
4480 although his Bank Statement showed only 3,200 overdrawn. An examination of the two records showed the following errors:
(i)The debit side of the Cash Book was undercast by 400.
(ii) A cheque of 1600 in favour of y suppliers ltd. was ommitted by the bank statements, the
statement, the cheque was debited to another customer's Account.
(iii) A cheque of 172 drawn for telephone bill was recorded in the cash Book as 127 but was shown correctly in the Bank Statement.
(iv)
A cheque for 425 from Mr. Pal paid into bank was dishonoured and shown asmade in the Cash Book, although no entry relating to dishonoured cheque was made in the cash book
(v)The Bank had debited a cheque for 150 to Mr. Hari's Account by mistake, it should have been debited by them to Mr. Kar's Account.
(vi)
A dividend of 100 was collected by the bank but not entered in the Cash Book.
(vii) Cheques totaling 1,300 drawn on November was not presented for payment,
(viii) Cheque for 1,200 deposited on 30th November was not credited by the Bank.
(ix) Interest amounting to 300 was debited by the Bank but yet to be entered in the Cash Book.
You are required to prepare a Bank Reconciliation Statement on 30th November, 2018

Answer 1

Answer:

Bank Reconciliation Statement as on 30th November, 2018

Particulars ` `

Bank Overdraft as per Bank Statement 3,200

Add: (i) Debit side of the Cash Book was undercast 400

(ii) Cheque issued but debited by the Bank to

another customer’s account by mistake 1,600

(vi) Dividend directly collected by the Bank but

not entered in the Cash Book 100

(vii) Cheque issued but yet to be presented for

payment

1,300 3,400

6,600

Less: (iii) Cheque issued for ` 172 posted in the

Cash Book as ` 127 45

(iv) Cheque dishonoured but not recorded in

the Cash Book

425

(v) Wrong debit by the Bank to Hari’s A/c 150

(viii) Cheque deposited but yet to be credited 1,200