11th | Bank Reconciliation Statement | Question No. 16 To 20 | Ts Grewal Solution 2024-2025

A Bank Reconciliation Statement is prepared as on 31st March, 2024 starting with credit balance as per Cash Book. State whether the following transactions will be shown in the Bank Reconciliation Statement by adding or deducting these from the given balance giving reason:

(i) Cheque of `10,000 deposited was dishonored.

(ii) Cheque of `20,000 was recorded in Cash Book but was not deposited.

(iii) A post-dated cheque of `20,000 discounted from Bank was dishonored.

(iv) Acheque issued to Ramesh for `5,500 was not recorded in Cash Book.

(v) Payments Side of the Cash Book was undercast by `4,000.

Following transitions will be added:

Transaction no. 1 to 5.

Reason:

Above all transactions are increasing only cash book, Transaction no. 1 to 5 are to be added to balance of cash book to increase to the balance of pass book.

Tiwari & Sons find that the bank balance shown by their Cash Book on 31st March, 2024 is `40,500 (credit) but the Pass Book shows a difference due to the following reasons:
(i) A cheque for `5,000 drawn in favour of Manohar has not yet been presented for payment.
(ii) A post-dated cheque for `900 has been debited in the bank column of the Cash Book but it could not have been presented in any case.
(iii) Cheques totaling `10,200 deposited with the bank have not yet been collected and a cheque for `4,000 has been dishonored.
Prepare Bank Reconciliation Statement and find out the balance as per Pass Book.

On 31st March, 2024, Cash Book of a merchant showed bank overdraft of `1,72,985. On comparing the Cash Book with Bank Statement, following discrepancies were noted:
(i) Cheques issued for `60,000 were not presented in the bank till 7th April, 2024.
(ii) Cheques amounting to `75,000 were deposited in the bank but were not collected.
(iii) A Cheque of `15,000 received from Mahesh Chand and deposited in the bank was dishonoured but the non-payment advice was not received from the bank till 1st April, 2024.
(iv) `1,50,000 entered in the Pass Book for cheque realised but not in the Cash Book.
(v) Bank charges `1,500 and interest on overdraft `8,500 appeared in the Pass Book but not in the Cash Book.
(vi) Overdraft balance as per Cash Book of `500 on 28th February, 2024 was wrongly carried forward as debit balance. The error was noted at the time of preparing the Bank Reconciliation Statement as on 31st March, 2024.
Prepare Bank Reconciliation Statement.

Note: Overdraft balance has credit balance but taken as debit balance, so to correct the error credit cash book by double amount.
Therefore, 1,000 should be shown in the minus side. 

Prepare Bank Reconciliation Statement from the following:
On 31st March, 2024, a merchant's Cash Book showed a credit bank balance of `10,500 but due to the following reasons the Pass Book showed a difference:
(i) A cheque of `540 issued to Mohan has not been presented for payment.
(ii) A post-dated cheque for `100 has been debited in the bank column of the Cash Book but under no circumstances was it possible to present it.
(iii) Four cheque of `1,200 sent to the bank have not been collected so far. A cheque of `400 deposited in the bank has been dishonoured.
(iv) As per instructions, the bank paid `50 as Fire Insurance premium but the entry has not been made in the Cash Book.
(v) There was a debit in the Pass Book of `15 in respect of bank charges and a credit of `25 for interest on Current Account but no record exists in the Cash Book.
(vi) Cheque of `5,000 dated 15th April, 2024 issued to M & Co. was dishonored being post dated. It was also not recorded in the books of account yet.

Note: Cheque dated 15th April, 2024 issued to M & Co. dishonoured will have no impact as this statement is as on 31st March 2024.

Overdraft balance shown by the bank column in the Cash Book of Vivek is `45,000.

Prepare Bank Reconciliation Statement as on 31st December, 2017:

(i) A post-dated cheque of `5,000 previously discounted with the bank had been dishonoured and debited in the Pass Book.

(ii) Interest on investment collected by the bank and credited in the Pass Book ` 1,500.

(iii) Cheques deposited into bank but not yet collected ` 7,500.

(iv) Interest charged by the bank on overdraft balance ` 1,850.

(v) Cheques issued but not yet presented for payment ` 11,350.

(vi) Received a payment directly from a customer into bank account ` 12,500.

(vii) Cheques recorded in the Cash Book but not sent to the bank for collection was `17,500.

(viii) Bank charges debited as per Pass Book `500.

(Delhi)