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14.10 Double Entry Book Keeping—ISC XI
B. If started with Cr. balance as per Bank Pass Book
BANK RECONCILIATION STATEMENT as on 31st March, 2022
Particulars Amount Amount
Details (`) `
Balance as per Bank Pass Book (Cr.) 1,500
Add: Cheques deposited but not yet collected 6,300
Collection charges 80
Electricity charges 450 6,830
8,330
Less: Cheques issued but not presented for payment 3,000
Dividend collected by Bank 1,300 4,300
Balance as per Cash Book (Dr.) 4,030
Illustration 8.
Jagdeep’s Cash Book on 31st March, 2022 showed an overdraft balance of ` 12,100 on his
Account No. 1 at the bank.
On investigation it is found that:
(i) Cheque drawn amounting to ` 4,200 had not been presented to the bank for payment.
(ii) Cheque for ` 3,600 entered in the Cash Book and paid into the bank had not been
credited by the bank.
(iii) The receipts side of the Cash Book had been undercast by ` 1,000.
(iv) Bank charges of ` 50 entered in the Bank Statement had not been entered in the
Cash Book.
(v) A cheque for ` 5,200 drawn on the Account No. 1 had been charged by the bank
erroneously to Account No. 2.
(vi) Dividend of ` 300 paid directly to the bank had not been entered in the Cash Book.
(vii) A cheque for ` 700 received from a debtor paid into the bank, dishonoured and shown
as such by the bank but no entry of dishonour had been made in the Cash Book.
(viii) A cheque for ` 420 drawn by another customer of the bank bearing the same name had
been charged to Jagdeep’s Bank Account by error.
You are required to:
(a) show the necessary adjustments to be made in the Cash Book; and
(b) prepare Bank Reconciliation Statement for Account No. 1 as on 31st March, 2022.
Solution: In the Books of Jagdeep
CASH BOOK (CORRECTED)
Dr. BANK COLUMN ONLY Cr.
Date Particulars L.F. ` Date Particulars L.F. `
2022 2022
March 31 To Adjustment March 31 By Balance b/d 12,100
for undercasting 1,000 March 31 By Bank Charges 50
March 31 To Dividend 300 March 31 By Debtor— 700
March 31 To Balance c/d 11,550 Dishonoured cheque
12,850 12,850