Account 4 Marks Question

On 31st March 2018, the Cash Book of B.Babu showed an overdraft of Rs. 18,000 with the Bank of India. This balance did not agree with the balances as shown by the Bank Pass Book. You find that Babu had paid into the Bank on 26th March, four cheques for Rs. 10,000 , Rs. 12,000 Rs. 6,000 and Rs. 8,000 . Of these, the cheques for Rs. 6,000 was credited by the Bank in April 2018. Babu had issued on 24th March, three cheques for Rs. 15,000 , Rs. 12,000 and Rs. 7,000 . The first two cheques were presented to the Bank for payment in March 2018 and third cheque in April 2018.
You also find that on 31st March 2018 the Bank had debited Babu's account with Rs. 500 for interest, Rs. 20 as charges, but Babu had not recorded these amounts in his Books.
Prepare Bank Reconciliation Statement as on 31st March 2018 and ascertain the balance as per the Bank Pass Book.

i. On 31st March, 2023, the Bank Pass Book of Renu Enterprises showed a credit balance of ₹ 15,000 .
ii. Before that date, she had issued cheques amounting to ₹ 8,000 out of which cheques of ₹ 3,200 were presented for payment till 31st March, 2023.
iii. A cheque of ₹ 2,200 deposited by her into the bank on 28th March, 2023 is not yet credited in the Bank Pass Book.
iv. She had also received a cheque of ₹ 500 which although entered by her in the bank column of Cash Book, was omitted to be paid into the bank.
v. On 30th March, 2023, a cheque of₹ 1,570 received by her was paid into the bank but the same was omitted to be recorded in the Cash Book.
vi. There was a credit of ₹ 150 for interest on current account and a debit of ₹ 25 for bank charges.
vii. A wrong credit of ₹ 2,000 was given by bank on 27th March, 2023 and was reversed on 10th April, 2023.
Prepare Bank Reconciliation Statement as on 31st March, 2023.

Explain the need for drawing up the special purpose books.

Prepare the trial balance of Mahesh as on 31st March, 2023. He has omitted to opena Capital Account:

	₹		₹
Bank Overdraft	95,000	Purchases	4,45,000
Sales	8,10,000	Cash in Hand	8,500
Purchases Return	22,500	Creditors	2,15,000
Debtors	4,00,500	Sales Return	15,750
Wages	96,000	Equipment	25,000
Capital	?	Opening Stock	3,00,500