From the following particulars, prepare a bank reconciliation statement of Paradise Electronic Motor Private Ltd., as on 30th Sep., 2012:

(a) Overdraft on 30th Sep., 2012 as per pass book Rs 10000

(b) Cheques deposited in the bank but not recorded in the cash book Rs 100

(c) Cheques received and recorded in the bank column but not sent to bank for collection Rs 1000

(d) Several cheques were drawn in the last week of September, totalling Rs 15000; of these cheques totalling only Rs 9000 were cashed before 30th September.

(e) Similarly, several cheques, totalling Rs 9000 were sent for collection; of these, cheques of the value of Rs 1500 were credited on 5th October and Rs 2000 on 7th October, balance being credited before 30th September.

(f) On 11th Sep., 2012, the credit side of the bank column of the cash book was cast Rs 1000 short and the credit balance of Rs 2600 on 15th September, 2012 was brought forward on 16 September, 2012 as debit balance of Rs 2600.

(g) Fees of Rs 250 were paid directly by the bank but was not recorded in the cash book.

(h) In the cash book, a bank charge of Rs 30 was recorded twice while another bank charge of Rs 50 was not recorded at all.

(i) Interest of Rs 1400 was charged by the bank but was not recorded in the cash book.

The answer given in the book is : Overdraft as per cash book Rs 3730

Bank Reconciliation Statement

as on September 30, 2012

Particulars

Amount

(Rs)

Amount

(Rs)

Overdraft balance as per the Pass Book

 

10,000

Add: Transaction increasing balances of Given Book (i.e. Pass Book)

 

 

(b) Cheque deposited in the bank but not recorded in the Cash Book

100

 

(d) Cheques of Rs 15,000 were drawn, out of these only Rs 9,000 were encashed till Sept.30, 2012

6,000

6,100

 

 

 

Less: Transactions reducing Balances of Given Book (i.e. Pass Book)

 

 

(c) Cheque received and recorded in the bank column of the Cash Book but not sent to bank for collection 

1,000

 

(e) Cheues of Rs 9,000 were sent to bank for collection but out of these cheques of Rs 2,000 and Rs 1,500 were credited after Sept.30, 2012

3,500

 

(f) Credit side of the bank column of the Cash Book was casted Rs 1,000 short

1,000

 

(f) Credit balance of the Cash Book Rs 2,600 was carried forwarded as debit balance of Rs 2,600

5,200

 

(g) Fees of Rs 250 were paid directly by the bank but not recorded in the Cash Book

250

 

(h) Bank Charges of Rs 30 were recorded twice in the cash book and another bank charges of Rs 50 was not recorded in the Cash Book.(50 – 30)

20

 

(i) Interest charged by the bank but not recorded in the Cash Book

1,400

12,370

Closing Balance of Cash Book

 

3,730

 

 

 

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