On 31st March, 2026, the bank account of Sagar, according to the bank column of the Cash Book revealed a debit balance of 37,25,000. On examination…

On 31st March, 2026, the bank account of Sagar, according to the bank column of the Cash Book revealed a debit balance of 37,25,000. On examination of the cash book and bank statement you find that: (1) Cheques amounting to 3,00,000 which were issued to trade payables and entered in the cash book before 31st March, 2026 were not presented for payment until that date. (2) Cheques amounting to 12,20,000 had been recorded in the cash book as having been paid into the bank on 31 March, 2026 out of which cheques amounting to 9,75,000 had only collected by the bank upto 31st March, 2026. (3) A Term Deposit matured on 13th March, 2026 and proceeds amounting to 2,82,500 were credited to bank and entered in the Bank Statement but no recorded in the cash book. (4) Inspection fee of 15,000 debited by the bank had not been accounted for in the books of account. (5) A payment of 33,000 made to a creditor had been wrongly entered as 30,000 in the cash book. (6) Trade Association subscription amounting to 5,000 was paid directly from the bank as per mandate is yet to be accounted for by Sagar. (7) A Bill payable of 2,50,000 had been paid by the bank but was not entered in the cash book. A Bill of Exchange for 1,40,000 had been discounted with the bank at a cost of 2,000 but no entry had been made in the books of Sagar. You are required: (A) to make appropriate adjustments in the cash book to arrive at the correct balance on 31st March, 2026, and (B) to prepare a statement reconciling the adjusted balance in the cash book with the balance shown in the bank statement.