Question

Question 15.
Bank Statement of a customer shows bank balance of ₹ 62,000 on 31st March, 2018. On Comparing it with the Cash Book the following discrepancies were noted:
(i) Cheques were paid into the bank in March but were credited in April:
P – ₹ 3,500; Q – ₹ 2,500; R – ₹ 2,000.
(ii) Cheques issued in March were presented in April:
X – ₹ 4.000; Q – ₹ 4,500.
(iii) Cheque for ₹ 1,000 received from a customer entered in the Cash Book but was not banked.
(iv) Pass Book shows a debit of ₹ 1,000 for bank charges and credit of ₹ 2,000 as interest.
(v) Interest on investment ₹ 2,500 collected by the bank appeared in the Pass Book.
Prepare Bank Reconciliation Statement showing the balance as per Cash Book on 31st March, 2018.

Answer 1

Answer is given with the required explanation.

Explanation:

Particulars                                                                                     Amount

Balance as per the pass book                                                      62000

(i) Add: Cheque deposited but not credited                                  8000

(ii) Less: Cheuqe issued but not presented                                   (8500)

(iii) Add: Cheque received not entered                                           1000

(iv) Add: Bank Charges                                                                     1000

Less :Bank allowed interest                                                            (2000)

(v) Less: Interest on investment                                                       (2500)

Balance as per cash book                                                               59000

Explanations :

• We need to add cheque deposited as it increases the amount as per cash book.
• Chques presented reduces the amount of cash book.
• cheque received increases the amount in cash book.
• Bank charges reduces the amount in pass book so needs to add it.
• Bank allowed interest need to be reduced
• Interest on investment need to be deducted.