From the following particulars of M/s Iqbal enterprises, prepare a Bank reconciliation statement: (1) Bank overdraft as per Pass Book as on 31st…

CA Foundation · Accounting · RTP · January 2025
From the following particulars of M/s Iqbal enterprises, prepare a Bank reconciliation statement: (1) Bank overdraft as per Pass Book as on 31st March, 2024 was - 8,800 (2) Cheques deposited in Bank for 5,800 but only - 2,000 were cleared till 31st March. (3) Cheques issued were - 2,500,3,800 and - 2,000 during the month. The cheque of 5,800 is still with supplier. (4) Dividend collected by Bank - 1,250 was wrongly entered as 1,520 in Cash Book. (5) Corporation tax 1,200 paid by Bank as per standing instruction appears in Pass Book only. (6) Interest on overdraft 930was debited by Bank in Pass Book and the information was received only on 3rd April, 2024. (7) Direct deposit by M/s Rajesh Trader 400not entered in Cash Book. (8) Amount transferred from fixed deposit A/c into the current A/c - 2,000 appeared only in Pass Book.

Suggested Answer and Working Notes:

Bank Reconciliation Statement as on 31st March, 2024 Particulars Amount ₹ Overdraft as per Pass Book 8,800 Add: (i) Cheques issued but not presented till31st March 5,800 (ii) Transfer from fixed deposit 2,000 (iii) Direct deposit by M/s Rajesh Trader 400 8,200 17,000 Less: (i) Cheques deposited but not cleared (₹ 5,800 -2,000) 3,800 (ii) Dividend collected excess recorded in Cash Book (₹ 1,520 -1,250) 270 (iii) Interest on overdraft debited in Pass Book only 930 (iv) Corporation tax paid appeared in Pass Book only 1,200 6,200 Overdraft as per Cash Book 10,800

Topics: Bank Reconciliation Statement

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