Prepare Bank Reconciliation Statement of Mohan as on 31 March 2011 from the following information:-
a) Balance as per passbook (Debit) Rs. 31700
b) Bank collected a cheque of Rs. 3200 on behalf of Dhiraj but wrongly credited to Mohan Account.
c) withdrawal column of cash book was undercast by Rs 870.
d) Cheque of Rs. 6782 deposited into bank was recorded as Rs. 8762 in pass book.
e) A cheque of Rs. 9000 collected from Megha was debited in the pass book.
f) pass book showed a credit for a cheque amounting Rs 6800 deposited by Dhiraj.
g) Cheque of Rs. 5100 issued to Divya was recorded twice in the Pass book.
h) A cheque of Rs 6400 deposited was taken in the Cash column. (answer: Rs 26110 credit balance as per cash book) Given as per my book.
- why entry no. (e) is netered twice with proper logic
- If I've been told that "Conpulsorily" I have to prepare this with "+ and - column method" and not "details and total method" how Iwill prepare it???
In entry (e), cheque collected from Megha was debited in the Pass Book with Rs 9,000.
Let us analyse the effect of this transaction on:
1. Cash Book: Cheque collected will appear on debit side with Rs 9,000
2. Overdraft balance of Cash Book: With the deposit, overdraft balance will reduce with Rs 9,000
3. Pass Book: Cheque collected should appear on credit side (the side of deposits), however, it has been debited (the side of withdrawals)
4. Overdraft balance as per Pass Book: Overdraft balance is increased by Rs 9,000
Now, compare both the overdraft balances
Cash Book balance is reduced by 9,000, however, Pass Book balance is increased by 9,000.
So, the difference between both the balances comes out to be Rs 18,000.
Thus, when the starting balance is Overdraft balance as per Pass Book, Rs 9,000 will be reduced to rectify the wrong debit and again Rs 9,000 will be reduced to record the correct credit (deposit).
The solution to the second part of your query is as follows:
|Bank Reconciliation Statement|
|Bank Balance as per Pass Book (Dr.)||31,700|
|(b) Wrongly credited Mohan Account||3,200|
|(d) Cheque deposited recorded with wrong amount in Pass Book||1,980|
|(f) Cheques credited not recorded in Cash Book||6,800|
|(h) Cheque deposited was recorded in Cash column of Cash Book||6,400|
|(c) Withdrawal column of Cash Book was undercasted||870|
|(e) Cheque collected from Megha was wrongly debited in Pass Book (9,000+9,000)||18,000|
|(g) Cheque issued was recorded twice in Pass Book||5,100|
|Closing Balance of Cash Book (Cr.)||26,110|
When we have to prepare as per 'Plus and Minus items' method, items added otherwise will be shown under the 'minus' column and items to be deducted will be shown under the 'plus' column.
It is because of the mathematical operations, when -10-20 = -30
Similarly, to increase a negative figure, we have to subtract another figure from it and to decrease a negative figure, we have add another figure to it.
Hope this answers your query.