On January 2018, the Pass Book of Mr. Girish Kumarbhai showed a bank balance of ₹14,000. A comparison of the cash Book with the Pass Book, revealed the following.
On January 2018, the Pass Book of Mr. Girish Kumarbhai showed a bank balance of ₹14,000. A comparison of the cash Book with the Pass Book, revealed the following.
1. Cheque deposited but not credited by bank ₹10,000.
2. Dividend on shares collected by Bank but not recorded in the Cash Book ₹1,000.
3. Bank paid Insurance premium as per standing instruction by ECS ₹500, no corresponding entry was passed in the Cash book.
4. bank debited Commission 475.
5. A debit of ₹900 in respect of cheque dishonored appears in Pass Book only.
6. Cheque of ₹1,500 deposited into Bank wrongly recorded twice in the Cash Book.
7. Total cheques of ₹20,000 issued during the month of January 2018, but cheques of ₹8,000 only were presented for payment in January 2018.
Solution：
Bank Reconciliation Statement
As on 31st January 2018.
Particulars | Amount (₹) | Amount (₹)
|
Bank Balance as per Pass Book |
| 14,000 |
ADD 1. Cheque deposited in bank but not credited. |
10,000 |
|
2. Bank paid Insurance premium as per instruction by ECS, which no entry was passed in cash book. |
500 |
|
3.Bank debited Commission | 75 |
|
4. Cheque dishonored no entry as passed in Cash Book. |
900 |
|
5. Cheque de posited into bank but recorded twice in pass book. |
1,500 |
12,975 |
LESS 1. Dividend on shares collected by Bank but no entry in Cash Book. |
1,000 | 26,975 |
2. Issued cheque of ₹20,000 but cheque of ₹8,000 only were presented for payment. |
12,000 |
13,000 |
Calculation：
1. Total amount od Cheques is of ₹20,000 issued, but only cheque ₹8,000 is presented for payment by Bank.
∴ 20,000 - 8,000 = 12,000
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