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Bank Reconciliation Statement                                                 14.11

                                                  BANK RECONCILIATION STATEMENT
                                                       FOR ACCOUNT NO. 1
                                                       as on 31st March, 2022
                     Particulars                                                        Amount   Amount
                                                                                        Details (`)   `
                     Overdraft Balance as per Cash Book (Cr.)                                     11,550
                     Add:   Cheque paid in but not yet credited                           3,600
                          Cheque of another party wrongly debited to Account No. 1         420     4,020
                                                                                                  15,570
                     Less:   Cheque issued but not yet presented                          4,200
                          Cheque drawn on Account No. 1 wrongly debited to Account No. 2       5,200   9,400
                     Overdraft Balance as per Bank Pass Book (Dr.)                                6,170

                     Illustration 9.
                     Cash Book of a trader showed an overdraft balance of ` 32,750 on 31st March, 2022. On scrutiny
                     of the Cash Book and Bank Pass Book it was discovered that:
                      (a)  On 22nd March, sundry cheques totalling ` 6,500 were sent to bank for collection, out of
                         which a cheque of ` 1,500 was wrongly recorded on the credit side of the Cash Book and
                         cheques amounting to ` 3,300 could not be collected by the bank till 6th April.
                      (b)  A cheque for ` 4,000 was issued to a supplier on 28th March. This cheque was not presented
                         to Bank till 10th April.
                      (c)  Bank had debited ` 2,000 towards interest on overdraft and ` 600 for bank charges, but
                         the bank advice was sent on 15th April.
                      (d)  Payments side of the Bank Column of the Cash Book was undercast by ` 100.
                      (e)  Cheques for ` 2,000 drawn for office expenses were not encashed till 2nd April.
                       (f)  A cheque for ` 1,000 was issued to a creditor on 27th March and was omitted to be entered
                         in the Cash Book. It was, however, presented to bank within 31st March.
                      (g)  Dividends amounting to ` 500 had been paid direct to the bank and not entered in the
                         Cash Book.
                     You are required to make necessary corrections in the Cash Book and starting with the amended
                     balance, prepare a Bank Reconciliation Statement as at 31st March, 2022.

                     Solution:
                     Dr.                        AMENDED CASH BOOK (BANK COLUMN)                       Cr.
                     Particulars                         `      Particulars                        `
                     To  Customer (Debtor)               3,000    By  Balance b/d                  32,750
                        (Wrong Credit Earlier)*                 By  Interest on Overdraft           2,000
                     To  Dividends                        500   By  Bank Charges                     600
                     To  Balance c/d                    32,950   By  Error in Casting                100
                                                                By  Sundry Creditors (Omitted)      1,000
                                                        36,450                                     36,450

                     * A cheque received for  ` 1,500 was wrongly  recorded on the credit side of the Cash Book. For the
                      rectification of error, Cash Book should be debited by ` 3,000.
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