Prepare a Bank Reconciliation Statement for Vibha Traders as on 31st March, 2025. The Cash Book of Vibha Traders shows a debit balance of 3,29,000…

CA Foundation · Accounting · RTP · May 2026
Prepare a Bank Reconciliation Statement for Vibha Traders as on 31st March, 2025. The Cash Book of Vibha Traders shows a debit balance of 3,29,000 at Bank as on 31st March, 2025, but it does not agree with the balance as per the Bank Pass Book. After checking, the following differences were found:1. On 12th March, 2025, the payment side of the Cash Book was undercast by - 12,000.2. A cheque of 85,000 issued on 23rd March, 2025 was not taken in the bank column.3. On 22nd March, 2025, the debit balance of 18,500 as on the previous day was brought forward as a credit balance.4. Out of the total cheques amounting to 42,000 issued in the last week of March, 2025, cheques aggregating - 28,500 were encashed in March, 2025.5. Dividends of 35,000 collected by the Bank and Fire Insurance Premium of 20,000 paid by the Bank were not recorded in the Cash Book.6. One cheque issued to a creditor of 1,29,000 was recorded twice in the Cash Book.7. A cheque from a customer for 12,000 was deposited in the Bank on 28th March, 2025 but was dishonoured and advice was received from the Bank on 5th April, 2025.8. The Bank paid a credit card bill of 2,500 which was not recorded in the Cash Book.9. The Bank wrongly credited a cheque of 25,000 of another customer in our account.10.500 discount received was wrongly entered in the bank column in the Cash Book.11. A Debtor Mr, X deposited a cheque for 32,000 in the bank directly in the month of March, 2025, without intimating to Rani traders and the same cheque was dishonoured by bank due to insufficient fund in the month of March itself

Suggested Answer and Working Notes:

Bank Reconciliation Statement of Vibha Traders as on 31st March, 2025 Particulars Amount Amount Balance as per Cash Book 3,29,000 Add: Mistake in bringing forward - 18,500/- debit balance as credit balance on 22nd March 37,000 Cheques issued but not presented Issued = 42,000 less cashed - 28,500 = 13,500/- 13,500 Dividend directly collected but not entered in cash book 35,000 Cheques recorded twice in the cash book 1,29,000 Wrongly credited cheque by bank 25,000 Discount amount wrongly entered in bank column 500 2,40,000 Less: Wrong casting in cash book on 12th March, 2025 12,000 Cheque issued and not entered in the Bank Column 85,000 Fire insurance premium paid directly by bank 20,000 Cheque dishonored not recorded in books 12,000 Credit card payment not recorded in cash book 2,500 (₹ 1,31,500) Balance as per the Pass book 4,37,500 Note: No effects of cheque deposit directly and dishonored in the same month. Alternatively figure of 32,000/- can be added as well as deducted from balance as per cash book.

Topics: Bank Reconciliation Statement

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