Question

Question 30.
Prepare Bank Reconciliation Statement as on 31st March, 2018 from the following particulars:
(i) R’s overdraft as per Pass Book ₹ 12,000 as on 31st March.
(ii) On 30th March, cheques had been issued for ₹ 70,000 of which cheques amounting to ₹ 3,000 only had been encashed up to 31st March.
(iii) Cheques amounting to ₹ 3,500 had been paid into the bank for collection but of these only ₹ 500 had been credited in the Pass Book.
(iv) Bank has charged ₹ 500 as interest on overdraft and the intimation of which has been received on 2nd April, 2018.
(v) Bank Pass Book shows credit for ₹ 1,000 representing ₹ 400 paid by debtor of R direct into the bank and ₹ 600 collected directly by the bank in respect of interest on R’s investment. R had no knowledge of these items.
(vi) A cheque for ₹ 200 has been debited in the bank column of Cash Book by R but it was not sent to the bank at all.

Answer 1

⏩⏩⏩Section 7 of the Insolvency and Bankruptcy Code, 2016 ("Code") provides for a statutory right in favour of a financial creditor to initiate the corporate insolvency resolution process of a corporate debtor .⏪⏪⏪⏪

Answer 2

Explanation is given below the solution for better understanding.

Explanation:

Particulars                                                             Amount

(i) Overdraft as per passbook                               (12000)

(ii) Cheque issue but not presented                     (67000)

(iii) Cheque paid and not collected                         3000

(iv) Interest on overdraft                                             500

(v)Amount directly paid by debtor                            (400)

(v) Interest on investment                                          (600)

(vi) Cheque not sent to bank                                      200

Overdraft as per cashbook                                        76300

Explanation:

• Till 30th March only 3000 is encashed rest amount is still uncashed because of the the balance in passbook is more than cashbook so we has to reduce by the amount uncashed.
• 3000 amount is still not credited in bank account. Therefore no entry is made in the passbook so we need to increase the amount in passbook.
• Interest on overdraft charged by the bank and the amount is deducted from bank account. Therefore the entry in the passbook is made and not in the cash book. So we need to increase by 500 to reach the amount as per the cash book.
• Direct deposit by the debtor and interest on investment increase the amount as per the passbook so we need to deduct these two amount from the passbook.
• Cheque debited by 200 increases the amount as per the passbook so we need to reduce it .