Prepare the Bank Reconciliation Statement of M/s. XYZ Brothers on 31 st March, 2025 from the particulars given below: (i) The Bank Pass Book had a…
CA Foundation · Accounting · PYQS · May 2025
Prepare the Bank Reconciliation Statement of M/s. XYZ Brothers on 31 st March, 2025 from the particulars given below: (i) The Bank Pass Book had a debit balance of 62,500 on 31 st March, 2025. (ii) A cheque worth - 1,000 directly deposited into Bank by customer but no entry was made in the Cash Book. (iii) Out of cheques issued worth - 85,000. Cheques amounting to 50,000 only were presented for payment till 31 st March, 2025. (iv) A cheque for 10,000 received and entered in the Cash Book but in was not sent to the Bank. (v) Cheques worth - 50,000 had been sent to Bank for collection but the collection was reported by the Bank as under. (1) Cheques collected before31 st March, 2025,35,000. (2) Cheques collected on 10 th April, 202510,000. (3) Cheques collected on 12 th April, 20255,000. (vi) The Bank made a direct payment of 1,500 which was not recorded in the Cash Book. (vii) Interest on Overdraft charges by the bank - 4,000 was not recorded in the Cash Book. (viii) Bank charges worth 200have been entered twice in the book whereas Insurance charges for 175directly paid by Bank was not at all entered in the Cash Book. (ix) The credit side of bank column of Cash Book was under cast by - 5,000.
Suggested Answer and Working Notes:
Bank Reconciliation Statement as on 31 st March, 2025 Particulars Amount ₹ Amount ₹ Balance as per bank statement Dr (Overdraft) 62,500 Add: Cheques deposited directly by Customer 1,000 Cheques issued but not presented for payment (₹ 85,000 -50,000) 35,000 Bank Charges entered twice in Cash Book 200 36,200 98,700 Less: Cheques received but not sent to Bank (10, 000) Cheques collected on 10 th and12 th April (₹ 10,000+5,000) (15, 000) Insurance charges paid by bank (175) Direct Payment made by bank (1, 500) Interest on bank overdraft not entered in the cash book (4, 000) Credit side of the Cash Book undercast (5, 000) (35, 675) Overdraft as per cash book Cr./(Overdraft) 63,025 Alternatively, Bank reconciliation statement can also be prepared Bank Reconciliation Statement as on 31 st March, 2025 Particulars Amount ₹ Amount ₹ Overdraft Balance as per bank statement (62, 500) Less: Cheques deposited directly by Customer (1, 000) Cheques issued but not presented for payment (₹ 85,000-50,000) (35, 000) Bank Charges entered twice in Cash Book (200) (36, 200) (98, 700) Add: Cheques received but not sent to Bank 10,000 Cheques collected on 10 th and12 th April (₹ 10,000+5,000) 15,000 Insurance charges paid by bank 175 Direct Payment made by bank 1,500 Interest on bank overdraft not entered in the cash book 4,000 Credit side of the Cash Book undercast 5,000 35,675 Overdraft as per cash book (Overdraft) (63, 025) The Bank Reconciliation statement can also be prepared using plus and minus method.
Topics: Bank Reconciliation Statement
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