Prepare a bank reconciliation statement......
Q3. From the following information ascertain the balance that would appear in the Bank Pass Book of Mr. A on 31st March 2015:
i. The bank overdraft as per Cash Book on 31st March 2015 Rs. 63400
ii. Interest on overdraft for six month ended 31st March 2015 Rs. 1600 entered in the Pass Book.
iii Bank charges of Rs. 300 for the prior to 31st March 2015 amounted to Rs.11680
iv. Cheques issued but not cashed prior to 31st March 2015 amounted to Rs.11680
v. Cheques paid into the bank but not cleared before 31st March 2015 were for Rs. 21700
vi. Interest on investments collected by the bank and credited in the Pass Book Rs. 12000
We'll start with negative balance, as it is overdraft.
I. -63,400 (overdraft as per cash book)
II. -1,600 (interest, not recorded in our cash book)
III. -300 (bank charges, not recorded in our cash book)
IV. +11,680 (cheques paid, not yet cleared or paid)
V. -21,700 (cheques deposited, not cleared or got deposited in our bank account)
VI. +12,000 (interest on investment, not recorded in our cash book)
Balance as per pass book: −63,320