Sunny's cash book showed an overdrawn cash book balance of Rs.40,500 on 31st March, 2019. He received a bank statement showing an overdrawn balance of Rs.50,800 on same date. The reason for the difference is that bank charged Rs.12,000 and allowed interest Rs.1,700 has not been recorded in the cash book. Will these two transactions make up the difference between the balances shown by two books or there can be any more transactions also causing the difference? Give reasons in support of your answer.
Answers
Answer:
Bank reconciliation statement
(+). (-)
overdraft bal percash book 40500
bank charges not recorded
in cash book 12000
interest received not recorded
cash book. 1700
overdraft bal as per pass book
50800
total 52500 52500
Explanation:
Yes these two transactions are the reason of difference between two books because of time gap of recording transactions in both books
Yes there are other transactions which are the reason of difference between two books as
Cheque issued but not presented for payment in bank
cheque sent to bank but not cleared by bank