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