Question

The Treasurer of the Calcutta Club attempting reconcile the balance shown in the Cash Book with that appearing on the Bank Statement. According to the Cash Book, the balance at the bank as at 31st May, 2016 was Rs. 1,900 while the Bank Statement disclosed on overdraft amount of Rs. 470. Upon investigation, the treasurer discovers the following errors : (a) A cheque paid to S Ltd. for Rs. 340 had been entered in the cash book as Rs. 430. (b) Cash paid to the bank for Rs. 100 had been entered in the cash book as Rs. 90. A transfer of Rs. 1500 to the Savings Bank had not been (c) entered in the cash book. (d) A receipt of Rs. 10 shown on the bank statement has not been entered in the cash book, (e) Cheques drawn amounting to Rs. 40 had not been presented into the bank. The Cash Book balance had been incorrectly brought (f) down at 1st June, 2016 as a debit balance of Rs. 1,200 instead of a debit balance of Rs. 1,100. (g) Bank charges of Rs. 20 did not appear in the Cash Book. (h) Receipts of Rs. 900 paid into the bank on 31st May, 2016 did not appear on the bank statement until 1.6.2016. (i) A standing order payment of Rs. 30 had not been entered in the Cash Book. () A cheque for Rs. 50 previously received and paid into the bank had been returned by the bank marked 'account closed'. (k) The bank received a direct deposit of Rs. 100 from an anonymous member, (1) Cheques paid into the bank had been incorrectly totalled. The amount should have been Rs. 170 instead of Rs. 150. Draw up a Bank Reconciliation statement as at 31st May, 2016.​

Answer 1

Answer:

Bank reconciliation statement tallying with the updated cash book. You can see the working in the image attached.

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