Attempt any ONE of the two sub-parts ie either (i) OR (ii) (i) On 30 th November, 2025, the Bank Statement of M/s Rama & Sons showed a Debit…

CA Foundation · Accounting · PYQS · January 2026
Attempt any ONE of the two sub-parts ie either (i) OR (ii) (i) On 30 th November, 2025, the Bank Statement of M/s Rama & Sons showed a Debit balance of 39,700 at bank. On comparing it with the Cash Book, the following discrepancies were observed: (1) A cheque of 10,000 was issued to a supplier on 25 th November but was not presented for payment till 3 rd December. (2) A cheque of 3,000 was received from a customer and deposited on 28 th November but was credited by the bank on 2 nd December. (3) The bank had directly collected interest of 2,400 on behalf of the firm, which has not yet been recorded in the cash book. (4) Credit side of the Bank column of Cash book was overcast by - 900. (5) A customer had directly deposited - 8,000 into the firm's bank account, but no entry was made in the cash book. (6) A cheque of 2,000 deposited earlier was returned dishonoured and debited in the Bank Statement only. (7) As per standing instructions to bank, EMI of 20,000 was paid by the bank. The same was omitted to be accounted for in the cash book. (8) An amount of 5,000 was wrongly credited by bank to the firm's account for which details are not available. (9) The Cashier had wrongly recorded a bank payment of 12,500 as 21500 in the Cash Book. You are required to ascertain the balance appearing in the Cash Book of M/s Rama and Sons as on 30 th November, 2025. OR (ii) T draws on J a bill of exchange for 1,80,000 on 1 st April, 2025 for 3 months. J accepts the bill and sends it to T, who gets it discounted from his banker for 1,72,800. T immediately remits - 57,600 to J. On the due date, T, being unable to remit the amount due, accepts a bill for 2,52,000 for three months, which is discounted by J from his banker for 2,40,660. J sends - 40,440 to T. Before the maturity of the bill, T becomes bankrupt and his estate paying fifty paise in a rupee. Pass the necessary journal entries in the books of T.

Suggested Answer and Working Notes:

Bank Reconciliation Statement of M/s Rama & Sons as on 30 th November, 2025 Particulars ₹ Overdraft balance as per pass book 39,700 Add: Cheque issued but not presented to the bank 10,000 Bank interest not entered in cash book 2,400 Credit side of Bank column of cash book over-casted 900 Cheque directly deposited into the bank 8,000 Amount wrongly credited by Bank 5,000 Error in entry of payment 9,000 35,300 75,000 Less: Cheque dishonoured and debited to bank 2,000 EMI paid by Bank 20,000 Customer cheque deposited but not credited by bank 3,000 (25, 000) Overdraft balance as per cash book/ Cr 50,000 Or In the books of T - Journal Entries Date Particulars DR. (in ₹) CR. (in ₹) 1/4/2025 Bills receivables A/c Dr. 1,80,000 To J A/c 1,80,000 (Being bill of exchange drawn on Mr. J) 1/4/2025 Bank A/c Dr. 1,72,800 Discount charges A/c Dr. 7,200 To Bills receivable A/c 1,80,000 (Being the bills receivable discounted with the bank at a charge of 7,200) 1/4/2025 J A/c Dr. 60,000 To Bank A/c 57,600 To Discount charges 2,400 (Being the amount remitted to J along with his share of the bank charges) 4/7/2025 J A/c Dr. 2,52,000 To Bills payable A/c 2,52,000 (Being the bills drawn by J, due to non-payment of earlier bill) 4/7/2025 Bank A/c Dr. 40,440 Discount charges A/c Dr. 7,560 To J A/c 48,000 (Being the amount discounted and sent it by J to T) 7/10/2025 Bills payable A/c Dr. 2,52,000 To J’s A/c 2,52,000 (Being the bill due dishonoured due to bankruptcy) 7/10/2025 J A/c Dr. 1,68,000 To Bank A/c 84,000 To Deficiency account 84,000 (Being the amount due to J discharged by payment of50paise in a rupee)

Topics: Bank Reconciliation Statement, Bills of Exchange and Promissory Notes, Subsidiary Books

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