Question

A trader received his bank statement on 31^st December, 2017 which showed an overdraft balance of Rs. 12,000. On the same day, his cash book showed a debit balance of Rs. 2,000. Analyse the following transactions. Choose the possible causes and prepare a bank reconciliation statement to show the causes of differences. 

(a) Cheque deposited for Rs. 2,000 on 21^st December, 2017. Bank credited the same on 26^th December, 2017. 

(b) Cheque issued for payment on 26^th December, 2017 amounting to Rs. 2,500, not yet presented until 31^st , December, 2017. 

(c) Bank charges amounting to Rs. 200 not yet entered in the cash book. 

(d) Online payment for Rs. 1,500 entered twice in the cash book. 

(e) Cheque deposited amounting to Rs. 1,000, but omitted in the cash book. The same cheque was dishonoured by bank, but not yet entered in cash book. 

(f) Cheque deposited, not yet credited by bank amounting to Rs. 17,800.

Answer 1

Banks reconciliation statement as on 31^st December, 2017

Note: Transactions (a) and (c) have been entered in both cash book and bank statement also. So we need not false into accounts