Account 4 Marks Question

On 31st December, 2014 my Cash Book showed a credit balance of ₹ 8,800. I had paid into Bank three cheques amounting to ₹ 6,000 on 24th December of which I found ₹ 3,200 have been credited in the Pass Book under date 5th January 2015. I had issued cheques amounting to ₹ 8,000 before 31st December of which I found ₹ 2,500 have been debited in the Pass Book after 1st January 2015. I find a debit of ₹ 50 in respect of bank charges in the Pass Book which I have adjusted in the Cash Book on 31st Dec. There is a credit of ₹ 360 for interest on securities in the Pass Book which remains to be adjusted. A cheque of ₹ 1,200 deposited into bank has been dishonoured.
Prepare Bank Reconciliation Statement as on 31st Dec. 2014.

My bank Pass Book showed an overdraft of ₹ 6,500 on 31st March, 2017. This does not agree with the Cash Book balance. From the following particulars ascertain the Cash Book balance:- Cheques amounting to ₹ 15,000 were paid into bank in March, out of which, it appears, only cheques amounting to ₹ 4,500 were credited by bank. Cheques issued during March amounted in all to ₹ 11,000. Out of these cheques for ₹ 3,000 were unpaid on 31st March, 2017. The Pass Book stands debited with ₹ 150 for interest and with ₹ 30 for bank charges. The bank had paid the annual subscription of ₹ 100 to my club according to my instructions. The entries for interest, bank charges and subscription have not yet been made in Cash Book.

Prepare Bank Reconciliation Statement from the following particulars on June 30, 2016: Bank Statement showed a favourable balance of ₹ 9,214.

1. On 29th June, the bank credited the sum of ₹ 1,650 in error.
2. Certain cheques, valued at ₹ 4,500 issued before June 30, were not cleared.
3. A hire purchase payment of ₹ 950, made by a standing order was not entered in the cash book.
4. A cheque of ₹ 600 received, deposited and credited by bank, was accounted as a receipt in the cash column of the cash book.
5. Other cheques for ₹ 8,500 were deposited in June but cheques for ₹ 6,000 only were cleared by the bankers.

Rim Zim Ltd. maintains a current account with the State Bank of India. On 31st March, 2017, the bank column of its cash book showed a debit balance of ₹ 1,54,300. However, the bank statement showed a different balance as on that date. The following were the reasons for the difference:

(i)	Cheques deposited, but not yet credited by the bank	75,450
(ii)	Cheques issued, but not yet presented for payment	80,760
(iii)	Bank charges not yet recorded in the cash book	1,135
(iv)	Cheques received by the bank directly from trade debtors	1,35,200
(v)	Insurance premium paid by the bank as per standing instructions, but not yet recorded in the cash book	15,400
(vi)	Dividend collected by the bank, but not yet recorded in the cash book	1,000

Find out the balance as per the bank statement as on 31st March, 2017.

On 30th June, 2014 the Pass Book of Sh. Mahabir Prashad showed a balance of ₹ 22,000. On comparing the Pass Book with Cash Book the following differences were found:-

1. Mahabir Prashad had paid into the Bank on 26th June four cheques for ₹ 3,000; ₹ 6,000; ₹ 8,000 and ₹ 10,000. Of these, the cheque for ₹ 6,000 was credited by the bank in July 2014.
2. On 23rd June three cheques were drawn for ₹ 12,000; ₹ 13,000 and ₹ 16,000. The first two cheques were presented to the bank for payment in June and the third in July 2014.
3. Cheques amounting to ₹ 3,600 were deposited in the bank but no entry was passed in the Cash Book.
4. Bank charges entered in Cash Book twice ₹ 50.
5. Cheque received entered twice in the Cash Book ₹ 3,200.

Prepare a Bank Reconciliation Statement as on 30th June 2014.

From the following particulars prepare a bank reconciliation statement of Govil as on 31st December, 2014.
Balance as per Pass Book on 31st December 2014 is ₹ 8,500. Cheques for ₹ 5,100 were issued during the month of December but of these cheques for ₹ 1,200 were presented in the month of January 2015 and one cheque for ₹ 200 was not presented for payment. Cheques and cash amounting to ₹ 4,800 were deposited in bank during December but credit was given for ₹ 3,800 only. A customer has deposited ₹ 800 into bank directly. The bank credited the merchant for ₹ 200 as interest and has debited him for ₹ 30 as bank charges for which there are no corresponding entries in Cash Book.

On 31st March, 2017, Pass Book showed a balance of ₹ 25,000. Prepare a Bank Reconciliation Statement from the following particulars:

1. Cheques of ₹ 20,000 were deposited in Bank on 27th March, 2017, out of which cheques of ₹ 5,000 were cleared on 1st April, 2017. Rest are not cleared.
2. On 28th March, 2017, cheques were issued amounting to ₹ 15,000, out of which cheques of ₹ 3,000 were presented in March, ₹ 4,000 on 2nd April and rest were not presented.
3. Cheques of ₹ 10,000 were deposited in Bank on 28th March, 2017, out of which cheques of ₹ 4,000 were cleared on 2nd April, 2017 and rest are dishonoured.
4. Interest on investment collected by bank does not appear in the Cash Book ₹ 800.
5. A B/R of ₹ 9,000 previously discounted from the bank was dishonoured on 30th March, 2017 but no intimation was received from the bank till 31st March.
6. Bank has debited ₹ 1,500 and credited ₹ 1,200 in our account.

On 31st March, 2015 the Pass Book shows a credit balance of ₹ 9,000. Prepare a Bank Reconciliation Statement from the following particulars:-

		₹
1.	Cheques issued but not yet presented for payment	7,000
2.	Cheques issued but omitted to be recorded in the Cash Book	3,800
3.	Cheques paid into bank but not yet collected by the bank	2,600
4.	Premium on Life Policy paid by the bank on standing advice	360
5.	Payments received from customers direct by the bank	2,000

On 31st December, 2014 the Cash Book of Basu showed an overdraft of ₹ 18,000 with the Bank of India. The balance did not agree with balance as shown by the Bank Pass Book and you find that Basu had paid into the Bank on 26th December four cheques for ₹ 10,000; ₹ 12,000; ₹ 6,000 and ₹ 8,000. Of these the cheque for ₹ 6,000 was credited by the bank in January, 2015. Basu had issued on 24th December three cheques for ₹ 15,000, ₹ 12,000, and ₹ 7,000. The first two cheques were presented to the bank for payment in December and the third in January, 2015.
You also find that on 31st December, 2014, the bank had debited Basu's Account for ₹ 500 for interest and ₹ 20 for charges but Basu has not recorded these amounts in his books.
You are required to prepare a Bank Reconciliation Statement as on 31st December, 2014 and ascertain the balance as per bank Pass Book.

On 30th June 2014 Pass Book showed a balance of ₹ 5,200. Prepare Bank Reconciliation Statement from the following particulars:-

1. Out of total cheques amounting to ₹ 16,000 deposited, cheques amounting to ₹ 9,000 were credited in June 2014, Cheques amounting to ₹ 3,000 were credited in July 2014, and the rest have not been collected so far.
2. Out of total cheques amounting to ₹ 45,000 drawn, cheques amounting to ₹ 7,500 were presented in June 2014, Cheques amounting to ₹ 18,000 were presented in July 2014, and the rest have not been presented so far.
3. Amount wrongly credited by bank ₹ 3,400.
4. Payment side of the Cash Book has been undercast by ₹ 200.
5. Cheques recorded in the Cash Book in June 2014 but sent to bank in July 2014 ₹ 2,500.
6. A cheque of ₹ 20,000 deposited in the bank has been dishonoured but no intimation was received till June 2014.

Raghav & Co. have two bank accounts, Account No. I and Account No. II. From the following particulars relating to Account No. I, find out the balance on that account on December 31, 2016 according to the Cash Book of the firm.

1. Cheques paid into bank prior to December 31, 2016, but not credited until after that date for ₹ 10,000.
2. Transfer of funds from Account No. II to Account No. I recorded by the bank on December 31, 2016 but entered in the Cash Book after that date for ₹ 8,000.
3. Cheques issued prior to December, 31 2016 but not presented until after that date for ₹ 7,429.
4. Bank charges debited by bank not entered in the Cash Book for ₹ 200.
5. Interest debited by the bank not entered in the Cash Book ₹ 580.
6. Overdraft as per Pass Book ₹ 18,990.

On 31st December, 2014, pass book shows debit balance of ₹ 7,500. From the following particulars, prepare a Bank Reconciliation Statement:

1. Cheques paid in for collection amounted to ₹ 20,600 but cheques of ₹ 7,800 were credited on 3rd January, 2015.
2. A cheque of ₹ 1,000 debited in cash book was omitted to be banked.
3. Cheques of ₹ 7,800 were drawn on 27th December of which cheques of ₹ 2,400 were cashed upto 31st December.
4. A cheque of ₹ 800 was banked and credited, but omitted to be recorded in cash book.
5. Bank charged interest on Overdraft ₹ 650.

Prepare the Bank Reconciliation Statement from the following particulars for the period ending 31st December, 2012.

1. Overdraft as per Pass Book on 31-12-2012 ₹ 7,600.
2. Cheques deposited but not collected by the bank ₹ 8,560.
3. Incidental charges not recorded in Cash Book ₹ 80.
4. Cheques were issued for ₹ 7,800 but only ₹ 4,400 were presented for payment.
5. Insurance premium paid by bank not recorded in the Cash Book ₹ 4,200.
6. On 31st December, 2012 cash was deposited in bank ₹ 385 but the cashier debited the bank column with ₹ 485 by mistake.

On checking the Bank Pass Book it was found that it showed an overdraft of ₹ 5,220 as on 31.12.2014, while as per Ledger it was different to Bank Debit. The following differences were noted:

1. Cheques deposited but not yet credited by bank ₹ 6,000.
2. Cheques dishonoured and debited by bank but not given effect to it in the Ledger ₹ 800.
3. Bank charges debited by bank but Debit Memo not received from bank ₹ 50.
4. Interest on overdraft excess credited in the Ledger ₹ 200.
5. Wrongly credited by bank to account, deposit of some other party ₹ 900.
6. Cheques issued but not presented for payment ₹ 400.

On 31st December, 2014 the Cash Book of Gopal showed debit balance of ₹ 12,000. On comparing the Cash Book with the Pass Book, the following discrepancies were noted:-

1. Cheques were issued for ₹ 15,000, but of them cheques for ₹ 7,700 have not yet been presented.
2. Cheques for ₹ 8,000 were deposited in bank but of these cheques for ₹ 2,000 were not recorded in the Cash Book.
3. Cheques deposited in bank but not credited ₹ 3,800.
4. A cheque for ₹ 350 was paid into bank but bank credited the amount with ₹ 530 by mistake.
5. Bank received interest on debentures on behalf of Gopal amounting to ₹ 300.
6. It was also found that the total of one page on the payment side of the Cash Book was ₹ 4,520 but it was written on the next page as ₹ 5,420.

Prepare a Bank Reconciliation Statement.

On 31st March, 2015 the Pass Book of Mr. Janaki Dass showed a credit balance of ₹ 20,600. Prepare a Bank Reconciliation Statement from the following information:

1. Cheques amounting to ₹ 15,000 were drawn in March 2015, out of which cheques for ₹ 5,500 were presented for payment on 3rd April.
2. A cheque for ₹ 5,475 was deposited into the bank, but wrongly entered in the Cash Book as ₹ 5,745.
3. A cheque of ₹ 5,000 which was received from a customer was entered in the cash column of the Cash Book in March 2015 but was omitted to be banked in the month of March.
4. A B/P of ₹ 10,000 was retired by the bank under a rebate of ₹ 100 but the full amount of the bill was credited in the Cash Book.
5. Bank charges entered in the Cash Book twice ₹ 200.

Prepare a Bank Reconciliation Statement from the following particulars:-
On 31st December 2014, I had an overdraft of ₹ 750 as shown by my Pass Book. I had issued cheques amounting to ₹ 250 of which ₹ 200 worth only seem to have been presented for payment. Cheques amounting to ₹ 100 had been paid in by me on 30th December, but of these only ₹ 75 were credited in the Pass Book. I also find that a cheque for ₹ 10 which I had debited to bank account in my books has been omitted to be banked. There is a debit of ₹ 25 in my Pass Book for interest.
An entry of ₹ 30 of a payment by a customer direct into the bank appears in the Pass Book. My Pass Book also shows a credit of ₹ 60 to my account for interest on investments directly collected by my bankers.

Prepare Bank Reconciliation Statement as on 31st January, 2017, if Cash Book of Mr. Sanjay showed a credit balance of ₹ 20,100.

1. The bank had paid fire insurance premium of ₹ 550 which does not appear in the Cash Book.
2. Cheques for ₹ 25,000 issued during January, but cheques for only ₹ 18,500 were presented for payment.
3. Interest collected by bank ₹ 740.
4. Cheques of ₹ 8,700 were deposited into bank, but cheques for ₹ 7,000 were cleared till 31st January, 2017.
5. A customer deposited ₹ 620 directly into bank without informing Mr. Sanjay.

From the following particulars prepare bank reconciliation statement as on 31st March 2015:

1. Debit balance as per Cash Book ₹ 1,500.
2. A cheque for ₹ 2,000 issued in favour of X has not been presented for payment.
3. A bill for ₹ 4,000 retired by bank under a rebate of ₹ 120. The full amount of the bill was credited in Cash Book.
4. A cheque for ₹ 750 deposited in bank has been dishonoured.
5. A sum of ₹ 3,600 deposited in the bank has been credited as ₹ 360 in the Pass Book.
6. Payment side of Cash Book has been undercast by ₹ 100.

Tiwari and Sons find that the bank balance shown by their Cash Book on December 31, 2016 is ₹ 40,500 (Credit) but the Pass Book shows a difference due to the following reasons:

1. A cheque for ₹ 5,000 drawn in favour of Manohar has not yet been presented for payment.
2. 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.
3. Cheques totalling ₹ 10,200 deposited with the bank have not yet been collected and an another cheque for ₹ 4,000 deposited in the account has been dishonoured.
4. A Bill Payable for ₹ 10,000 was retired by the Bank under a rebate of ₹ 150 but the full amount of the bill was credited in the bank column of the cash book.

Prepare a Bank Reconciliation Statement and find out the balance as per Pass Book.

The following facts were extracted as at 31st December 2014 from the books of Rajesh Dogra who keeps a double column Cash Book:

	₹
Bank balance as per Cash Book (overdrawn)	32,000
Balance as per bank statement (in favour)	24,000

₹ 200 commission charged by bank on outstation cheques yet to be taken into account.
A cheque for ₹ 11,000 paid to Shashi Bhushan wrongly entered in the cash column.
Debit side of Cash Book (bank column) undercast by ₹ 1,000. Cheques received from customers ₹ 10,400 deposited on 31-12-2014 but credited by the bank on 2-1-2015.
Cheques issued to suppliers ₹ 76,600 during 2014 not yet presented for encashment.
Prepare a Bank Reconciliation Statement as at 31-12-2014.

The following information relate to the business of Mohit Raina, who requests you to prepare his amended Cash Book and reconcile his Cash Book balance with his Pass Book balance:

	₹
Balance as per Cash Book (Cr.)	40,000
Unpresented cheques	72,000
Uncredited cheques	13,000

You have been given the following additional information:

1. The debit side of the Cash Book (Bank Column) has been undercast by ₹ 25,000.
2. A cheque for ₹ 10,000 paid to a creditor has been wrongly entered in the Cash Column.
3. Bank commission and other charges ₹ 4,000 have not been recorded in the Cash Book.

From the following particulars, prepare a Bank Reconciliation Statement of Sh. Yadav on 31st December 2014:-
Balance as per Pass Book on 31st December, 2014 is ₹ 11,000. Cheques for ₹ 6,200 were issued during the month of December but of these cheques for ₹ 900 were presented in the month of January, 2015 and one cheque for ₹ 500 was not presented for payment. Cheque and cash amounting to ₹ 5,700 were deposited in bank during December but credit was given for ₹ 4,700 only. A customer had deposited ₹ 850 into the bank directly. The bank has credited the merchant for ₹ 150 as interest and has debited him for ₹ 30 as bank charges, for which there are no corresponding entries in Cash Book.

On 31st March 2015 your bank Pass Book showed a balance of ₹ 6,000 to your credit. Before that date you had issued cheques amounting to ₹ 1,500 of which cheques worth ₹ 900 only have been presented. You also deposited cheques worth ₹ 2,000 of which cheque of ₹ 800 paid by you into bank on 29th March is not yet credited in Pass Book. You had also received a cheque for ₹ 160 which although entered by you in the bank column of the Cash Book, was omitted to be paid into the bank. On 31st March a cheque of ₹ 250 received by you was paid into the bank but the same was omitted to be entered in the cash book. There was a credit of ₹ 85 for interest on current account and debit of ₹ 10 for bank charges. Draw up a Reconciliation Statement showing adjustment between your Cash Book and pass book.

Prepare a Bank Reconciliation Statement in the books of Bharti as on 31st January 2017:

1. Balance as per Pass Book as on 31st January, 2017 was ₹ 62,500.
2. Cheque of ₹ 17,800 was issued by her on 28th January 2017 but this was not presented for payment till 31st January 2017.
3. A cheque of ₹ 4,000 issued to Mr. Rahim, was taken in the cash column.
4. A cheque of ₹ 15,000 was paid into bank but was omitted to be entered in the cash book.
5. The bank has charged ₹ 55 as its commission and has allowed interest ₹ 50.

From the following items prepare a Bank Reconciliation Statement on 31st May 2015:

1. Bank balance as per Cash Book on 31st May 2015 ₹ 17,600.
2. Cash and cheques totalling ₹ 36,000 were sent to bank during May but one cheque of ₹ 11,800 was shown in the Pass Book on 2nd June.
3. As per instructions bankers have directly collected ₹ 4,100 from a customer but there is no mention of it in the Cash Book.
4. Three cheques for ₹ 10,000, ₹ 12,000 and ₹ 4,800 respectively were drawn on 27th May but the cheque for ₹ 4,800 was encashed on 1st June.
5. On 31st May bankers had debited ₹ 45 as bank charges but had intimated it on 3rd June.
6. ₹ 16,200 were withdrawn from bank on 25th May but there is no entry for it in the Cash Book.