On 31st december 2017 the pass book of the merchant showed the credit balance of rupees 33570 (a) The cheques and drafts sent to the bank but not collected and credited amount to rupees 7900 and three cheques for rupees 3000 , 1500, 2000 respectivly were not presented for payment till 31st january next (b) bank has paid a bill amounting to rupees 10000 but it has not been entered in the cash book and a bill receivable for rupees 5000 which was discounted with the bank was dishonoured on the due date (c) the bank has charged rupees 130bas its Commission for collection of outstation cheque and has allowed interest rupees 100 on the traders balance prepare a bank reconciliation statement and show the balance as it would be appear in the cash book
Answers
balance as per cash book will Show Debit balance Rs 50,000
Explanation:
Bank Reconcilation Statement
as on 31st December 2017
__________________________________________________________
Particulars Plus Minus
__________________________________________________________
Credit Balance as per Pass book 33,570
a. Cheaque/Draft sent to bank but not collected 7,900
Cheaues issued but not presented in the bank 6,5000
b. The payment paid but not recorded in cash book 10,000
Bills receivable dicounted but dishounered 5,000
c. Bank charges on out station chq commission 130
Interest allowed by bank
______ ______
Total :- 56,600 6,600
======= ======
***** 56,000-6,600= 50,000
Thus the balance as per Merchant cash book will be Showed debit balance or Rs. 50,000