Page 83 - DEBK-XI(2020)

12.4 Double Entry Book Keeping — CBSE XI

(v) Bank paid ` 300 as Chamber of Commerce fee on behalf of D.K. which was
not recorded in the Cash Book.
(vi) Bank charged interest on overdraft ` 800.
(vii) ` 40 for bank charges were recorded two times in the Cash Book and bank
expenses of ` 35 were not at all recorded in the Cash Book.
(viii) Payments side of the Cash Book was ` 1,000 short.
(ix) Bank received ` 200 as interest on debentures on behalf of D.K.
(MSE Chandigarh 2001, Modified)
Solution: BANK RECONCILIATION STATEMENT as on 31st March, 2017
Particulars Amount Amount
Details (`) `
Overdraft Balance as per Pass Book (Dr.) 15,000
Add: Cheque deposited into Bank not recorded in Cash Book 200
Cheques issued but not presented for payment (` 17,000 – ` 10,000) 7,000
Bank charges recorded twice in Cash Book 40
Interest received on Debentures credited to account 200 7,440
22,440
Less: Cheques deposited but not yet credited (` 2,000 + ` 1,000) 3,000
Chamber of Commerce Fee paid by bank not recorded in Cash Book 300
Interest on Overdraft debited by bank 800
Bank Expenses debited by bank 35
Cash Book payments side casted short 1,000 5,135
Overdraft Balance as per Cash Book (Cr.) 17,305

3. Following are the entries recorded in the bank column of the Cash Book of
Mr. V. K. Gupta for the month ended 31st March, 2017:

Dr. CASH BOOK (BANK COLUMN ONLY) Cr.
Date Particulars ` Date Particulars `
2017 2017
March 15 To Cash A/c 36,000 March 1 By Balance b/d 40,000
March 21 To Roy 24,000 March 4 By John 2,000
March 22 To Kapoor 10,000 March 6 By Raj 400
March 31 To Balance c/d 7,640 March 15 By Kailash 240
March 20 By Joshi 35,000
77,640 77,640

On 31st March, 2017, Mr. V.K. Gupta received his Bank Statement. On perusal of
the statement, Mr. V.K. Gupta ascertained the following information:
(i) Cheques deposited but not credited by the bank ` 10,000.
(ii) Interest on securities collected by the bank but not recorded in the Cash
Book ` 1,080.
(iii) Credit transfer not recorded in the Cash Book ` 200.
(iv) Dividend collected by the bank directly but not recorded in the Cash Book ` 1,000.
(v) Cheques issued but not presented for payment ` 37,400.
(vi) Interest debited by the bank but not recorded in the Cash Book ` 1,000.
(vii) Bank charges not recorded in the Cash Book ` 340.
From the above information, prepare Bank Reconciliation Statement to ascertain
the balance as per the Bank Statement.