On 30th June , 2011 a trader had an overdraft of Rs. 5500 as shown by the bank column of his cash book. Cheques amounting to Rs 1500 had been paid to the bank but of these only Rs 1100 were credited in the pass book upto 30th June , 2011. He had also issued cheques amounting to Rs 3500, out of which only Rs 2150 worth cheques had been presented for payment. It was also found that a cheque for Rs 200 which he had debited to bank account was not sent to bank at all for collection through mistake. There is a debit in the pass book of Rs 10 for bank charges and Rs 50 for interest. A customer of the trader had paid directly into his bank Rs 1000 for credit of his account but it was not shown in cash book. The bank paid trader’s insurance premium Rs 250 as per instructions, but this had not been recorded in the trader’s cash book.
Prepare a bank reconciliation statement on 30th June, 2011 and show the balance, the bank pass book will indicate on that day.
The answer given in the book is: Overdraft balance as per pass book= Rs 4060
Bank Reconciliation Statement as on 30th June ,2004 | ||
Particulars | Amount (Rs) | Amount (Rs) |
Credit balance as per the Cash Book |
| 5,500 |
Add: Transaction increasing balances of Given Book (i.e. Cash Book) |
|
|
Cheque paid in bank but not credited in pass book | 400 |
|
Cheque debited in cash book but not debited to in bank A/c | 200 |
|
Bank Charges not recorded in cash book | 10 |
|
Interest charges not recorded in cash book | 50 |
|
Insurance premium paid not recorded in cashbook | 250 | 910 |
|
|
|
Less: Transactions reducing Balances of Given Book (i.e. Cash Book) |
|
|
Cheques issued but not presented for payment | 1,350 |
|
Directly paid by customer in bank account | 1,000 |
|
|
| 2,350 |
Closing Balance of Bank Pass Book |
| 4,060 |
|
|
|