The cash book of Hari showed a debit balance of 1,36,800 as on 31.12.2023 which was in disagreement with balance as per pass book. Following…

CA Foundation · Accounting · PYQS · September 2024
The cash book of Hari showed a debit balance of 1,36,800 as on 31.12.2023 which was in disagreement with balance as per pass book. Following discrepancies were noticed: (i) Dividend of 18,000 was deposited in the bank of which Hari had no information (ii) Cheque was issued to Suresh of 14,780 on 18.12.2023 which was recorded in cash book as 14,870. (iii) Cheques totalling of 55,000 were deposited into bank on 30.12.2023 which were not cleared until31.12.2023. (iv) Mediclaim premium of 14,160 was paid as per the standing instruction of Hari which was not recorded in cash book. (v) Goods amounting - 1,60,000 were sold to Ajay in November, 2023. He deposited cheque on 15.12.2023 after deducting4% cash discount. This entry was missed while preparing cash book. (vi) Bank charges for issue of cheque book 150was skipped while preparing cash book. (vii) Hari received a UPI of 1,000 on 29.12.2023 for sale of scrap which was not entered in cash book. (viii) Cheques amounting to 1,80,000 were issued during the month but cheques of 1,44,000 were only presented during the month for payment. Prepare Bank Reconciliation Statement on 31.12.2023 and ascertain balance as per pass-book.

Suggested Answer and Working Notes:

Bank Reconciliation Statement of Mr. Hari as on 31st Dec.,2023 Particulars Details ₹ Amount ₹ Balance as per the Cash Book 1,36,800 Add : Cheques issued but not presented for payment 36,000 Dividends directly collected by bank but not yet entered in the Cash Book 18,000 Cheque recorded with wrong amount in the Cash Book 90 Cheque directly deposited but not recorded in the cash book 1,53,600 Amount received from sale of scrap not recorded in cash book 1,000 2,08,690 3,45,490 Less : Cheques deposited but not cleared till31 st dec 55,000 Mediclaim paid by the bank directly not yet recorded in the Cash Book 14,160 Bank charges not recorded in cash book 150 (69, 310) Balance as per the Pass Book 2,76,180 Alternatively, the question can also be solved by preparing adjusted cash book. In that case the solution will be: Cash Book (Bank Column) Particulars Amount (₹) Particulars Amount (₹) To Balance b/d 1,36,800 By Bank charges 150 To Amount received from sale of scrap 1,000 By Mediclaim 14,160 To dividends collected by bank 18,000 By balance c/d 2,95,180 To cheques recorded with wrong amount 90 To cheque directly deposited not recorded 1,53,600 3,09,490 3,09,490 Bank Reconciliation Statement of Mr. Hari as on 31st Dec.,2023 Particulars ₹ Balance as per the Cash Book (corrected) 2,95,180 Add: Cheques issued but not yet presented 36,000 Less: Cheques deposited but not cleared (55, 000) Balance as per the Pass Book 2,76,180

Topics: Bank Reconciliation Statement

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