Account 6 Marks Question

Bank balance of ₹ 40,000 showed by the cash book of Atul on December 31, 2016.
It was found that three cheques of ₹ 2,000, ₹ 5,000 and ₹ 8,000 deposited during the month of December were not credited in the passbook till January 02, 2017.
Two cheques of₹ 7,000 and ₹ 8,000 issued on December 28, were not presented for payment till January 03, 2017. In addition to it bank had credited Atul for ₹ 325 as interest and had debited him with ₹ 50 as bank charges for which there were no corresponding entries in the cash book.
Prepare a bank reconciliation statement as on December 31, 2016.

Cash Book shows a balance of ₹ 12,500. On comparing the Cash Book with the Pass Book, following discrepancies were noted:

		₹
(i)	Cheques issued but not yet presented for payment.	6,000
(ii)	Cheques deposited in the bank but not collected.	9,000
(iii)	Bank paid insurance premium.	5,000
(iv)	Bank charges.	300
(v)	Directly deposited by a customer.	8,000
(vi)	Interest on investment collected by bank.	2,000
(vii)	Cash discount allowed of ₹ 200 was recorded on the debit side of the Bank column.

Prepare Bank Reconciliation Statement.

Overdraft shown by the passbook of Mr. Murli is ₹ 20,000. Prepare bank reconciliation statement on dated March 31, 2017.

1. Bank charges debited as per passbook ₹ 500.
2. Cheques recorded in the cash book but not sent to the bank for collection ₹ 2,500.
3. Received a payment directly from customer ₹ 4,600.
4. Cheque issued but not presented for payment ₹ 6,980.
5. Interest credited by the bank ₹ 100.
6. LIC paid by bank ₹ 2,500.
7. Cheques deposited with the bank but not collected ₹ 3,500.

Following information has been given by Rajendra. Prepare a Bank Reconciliation Statement as on 31st Dec. 2016, showing balance as per cash book:

1. Debit balance shown by the pass book ₹ 17,800.
2. Cheques of ₹ 21,600 were issued in the last week of December, but of these ₹14,800 only were presented for payment.
3. Cheques of ₹ 10,750 were deposited in bank, out of them a cheque of ₹ 4,200 was credited in the first week of January, 2017.
4. A cheque of ₹ 1,200 was debited in the cash book but was not deposited in bank.
5. Insurance premium paid by bank ₹ 1,450.
6. A bill of exchange for ₹ 6,200 which was discounted with bank, returned dishonoured but no entry was made in the cash book.
7. Bank charges and interest charged by bank are ₹ 350.

On comparing the Cash Book with Pass Book of Naman it is found that on March 31, 2017, bank balance of ₹ 40,960 showed by the Cash Book differs from the bank balance with regard to the following:

1. Bank charges ₹ 100 on March, 31 2017, are not entered in the Cash Book.
2. On March 21, 2017, a debtor paid ₹ 2,000 into the company's bank in settlement of his account, but no entry was made in the Cash Book of the company in respect of this.
3. Cheques totalling ₹ 12,980 were issued by the company and duly recorded in the Cash Book before March 31, 2017, but had not been presented at the bank for payment until after that date.
4. A bill for ₹ 6,900 discounted with the bank is entered in the Cash Book without recording the discount charge of ₹ 800.
5. ₹ 3,520 is entered in the Cash Book as paid into bank on March 31st 2017, but not credited by the bank until the following day.
6. No entry has been made in the Cash Book to record the dishonour on March 15, 2017 of a cheque for ₹ 650 received from Bhanu.

Prepare a reconciliation Statement as on March 31, 2017.

Prepare bank reconciliation statement of Dinesh on 30th June 2014 with following particulars:

1. Pass Book showed an overdraft of ₹ 15,000 on 30th June 2014.
2. A cheque of ₹ 200 was deposited in bank but not recorded in Cash Book.
3. Cheques of ₹ 17,000 were issued but cheques worth only ₹ 10,000 were presented for payment up to 30th June 2014.
4. Cheques of ₹ 2,000 were received and recorded in Cash Book but not sent to bank.
5. Cheques of ₹ 10,000 were sent to bank for collection; out of these cheques of ₹ 2,000 and of ₹ 1,000 were credited respectively on 8th July and 10th July and the remaining cheques were credited before 30th June 2014.
6. Bank paid ₹ 300 fee of Chamber of Commerce on behalf of Dinesh, which was not recorded in Cash Book.
7. Bank charged interest on overdraft ₹ 800 which was not recorded in Cash Book.
8. ₹ 40 for bank charges were recorded two times in Cash Book and bank expenses of ₹ 35 were not at all recorded in Cash Book.
9. Total of credit side of bank column of Cash Book was undercast by ₹ 1,000 by mistake.

Prepare a Bank Reconciliation Statement as on 31st March 2015 from the following informations:

		₹
(a)	Cash Book Balance (Overdraft)	12,500
(b)	Cheques deposited but not recorded in Cash Book	2,000
(c)	Cheque received but not sent to Bank	1,500
(d)	Credit side of the Bank Column has been overcast	60
(e)	Bank charges entered in Pass Book twice	75
(f)	Bills Receivable directly collected by the Bank	4,000
(g)	Deposited cheques returned dishonoured by Bank	1,700
(h)	Electricity Bill paid by Bank as per instruction	800
(i)	Cheques issued but not presented for payment	5,400
(j)	Cheques deposited but not cleared	3,200

From the following information supplied by Sanjay, prepare his Bank Reconciliation Statement as on 31st March, 2019:

		₹
(i)	Bank overdraft as per Pass Book.	16,500
(ii)	Cheques issued but not presented for payment.	8,750
(iii)	Cheques deposited with the Bank but not collected.	10,500
(iv)	Cheques recorded in the Cash Book but not sent to the bank for collection.	2,000
(v)	Payments received from customers directly by the bank.	3,500
(vi)	Bank charges debited in the Pass Book.	200
(vii)	Premium on life policy of Sanjay paid by the bank on standing advice.	1,980
(viii)	A bill for ₹ 3,000 (discounted with the bank in February) dishonoured on 31st March, 2019 and noting charges paid by the bank.	100

​​From the following information supplied by Mr. D.H., prepare his Bank Reconciliation Statement as on 31st March, 2019:

		₹
(i)	Bank overdraft as per Pass Book.	33,000
(ii)	Cheques issued but not presented for payment.	17,500
(iii)	Cheques deposited but not collected.	21,000
(iv)	Cheques recorded in the Cash Book but not sent to the bank for collection.	4,000
(v)	Payment received from customers directly by the bank.	7,000
(vi)	Bank charges debited in the Pass Book.	40
(vii)	Premium of Life Insurance Policy of Mr. D.H. paid by the bank on standing instructions.	360
(viii)	A bill for ₹ 6,000 dishonoured on 30th March, 2019 and bank paid Noting charges ₹ 20. This bill was discounted on 30th January, 2019.

From the following particulars, ascertain the bank balance as per Pass Book as on 31st March, 2019 (a) without correcting the Cash Book balance and (b) after correcting the Cash Book balance:

1. The bank balance as per Cash Book on 31st March, 2019 ₹ 40,000.
2. Cheques issued but not encashed up to 31st March, 2019 amounted to ₹ 10,000.
3. Cheques paid into the bank, but not cleared up to 31st March, 2019 amounted to ₹ 15,000.
4. Interest on investments collected by the bank but not entered in the Cash Book ₹ 500.
5. Cheques deposited in the bank but not entered in the Cash Book ₹ 12,500.
6. Bank charges debited in the Pass Book but not entered in the Cash Book ₹ 100.

On 31st March, 2019 the bank column of the Cash Book of Mr. Rajesh showed a debit balance of ₹ 5,200. On examining the Pass Book you find that:

1. Cheques of ₹ 20,000 were sent to bank for collection; Out of these cheques of ₹ 4,000 and of ₹ 5,000 were credited respectively on 5th April and 6th April respectively and the remaining cheques were credited before 31st March.
2. A cheque for ₹ 7,500 received from a customer although entered in the bank column of the Cash Book, was omitted to be paid into the bank.
3. Cheques drawn for ₹ 25,000 were not presented for payment.
4. Credit side of the bank column of the Cash Book was overcast by ₹ 100.
5. A B/P for ₹ 3,600 has been paid by the bank, but not yet recorded in the Cash Book.
6. No entry has been made in the Cash Book to record the dishonour on 28th March 2019, of a cheque for ₹ 5,400 received from a customer.
7. A cheque for ₹ 2,500 issued to a creditor was wrongly entered in the cash column of the Cash Book.
8. In the Cash Book, bank charges of ₹ 200 were entered twice while another bank charge of ₹ 500 was not recorded at all.

You are required to show the necessary corrections in the Cash Book and to prepare a statement reconciling the amended cash balance with that shown in bank Pass Book.

The Cash Book of a merchant showed an overdraft balance of ₹ 15,700 on 31st December 2018. On comparing it with the Pass Book, the following differences were noted:

1. Cheques amounting to ₹ 12,250 were deposited into the bank, out of which cheques for ₹ 8,200 have been credited in the Pass Book on 2nd January, 2019.
2. Cheques were issued amounting to ₹ 8,300 of which cheques for ₹ 2,000 have been cashed upto 31st Dec.
3. A cheque of ₹ 4,250 issued to a creditor, has been entered in the Cash Book as ₹ 4,520.
4. Bank charges of ₹ 180 on 30th November 2018 and ₹ 240 on 30th December 2018 have not been entered in the Cash Book.
5. A B/R for ₹ 6,000 discounted with the bank is entered in the Cash Book without recording the discount charges of ₹ 300.
6. A cheque for ₹ 2,000 deposited into the bank appear in the Pass Book, but not recorded in the Cash Book.
7. A cheque for ₹ 3,700 deposited into the bank appear in the Pass Book, was recorded in the cash column of the Cash book.

You are required:

1. To make appropriate adjustments in the cash book, bringing down the correct balance.
2. To prepare a bank reconciliation statement with the adjusted balance.

On 31st March, 2019 the Cash Book of Gopal disclosed a balance of ₹ 12,580. On checking entries in the Cash Book with the bank statement, it was ascertained that:

1. Cheques amounting to ₹ 18,000 were drawn on 25th March, of which cheques of ₹ 4,800 were cashed before 31st March.
2. Cheques for ₹ 18,000 were sent for collection out of which cheques for ₹ 8,200 were credit by bank after 31st March.
3. An amount of ₹ 5,000 paid directly into the merchant's account by a customer was not entered in the Cash Book.
4. On 31st March, cash was deposited into the bank ₹ 12,720 but the cashier debited the bank account with ₹ 12,270 by mistake.
5. Dividend collected by bank on our behalf ₹ 570 does not appear in the Cash Book.
6. ₹ 300 is entered in the bank statement as bank charges. This was recorded as ₹ 200 in the cash book.

You are required:

1. To prepare the Amended Cash Book.
2. Then prepare a Bank Reconciliation Statement.