When Debit Balance (Favourable Balance) as per Cash Book is Given.

Question 1. Rim Zim Ltd. maintains a current account with the State Bank of India. On 31st arch, 2010, the bank column of its cash book showed a debit balance of Rs 1,54,300. However, the bank statement showed a different balance as on that date.

The folllowing were the reasons for the difference:

1. Cheques deposited, but not yet credited by the bank. Rs 75,450
2. Cheques issued, but not yet presented for payment. Rs 80,760
3. Bank charges not yet recorded in the cash book. Rs 1,135
4. Cheques received by the bank directly from trade debtors. Rs 1,35,200
5. Insurance premium paid by the bank as per standing instructions, but not yet recorded in the cash book. Rs 15,400
6. Dividend collected by the bank, but not yet recorded in the cash book. Rs 1,000

Find out the balance as per the bank statement as on 31st March, 2010.

Question 2. The balance of cash at bank as shown by the Cash Book of Pan & Co. on 31st December, 2010, was Rs 7,500. On checking the entries in the Cash Book with the Pass Book, it was ascertained that cheques of Rs 500 and Rs 700 respectively paid in on 30th December, were not credited until the 2nd January following and three cheques of Rs 600, Rs 800 and Rs 1,200 issued on the 28th December were not presented until the 3rd of January. There was a credit of Rs 125 in the Pass Book in respect of interest under date 31st December, which was not entered in the Cash Book. There were also Bank Charges debited in the Pass Book amounting in all to Rs 10 which were not entered in the Cash Book.

Prepare a Bank Reconciliation Statement as at 31st December, 2010.