From the following information, prepare a Bank Reconciliation Statement as on June, 30,2024 for M/s XYZ Limited: (i) The Bank column of Cash Book…

CA Foundation · Accounting · PYQS · January 2025
From the following information, prepare a Bank Reconciliation Statement as on June, 30,2024 for M/s XYZ Limited: (i) The Bank column of Cash Book was overdrawn to the extent of 24,768. (ii) Bank charges amounting to 350 had not been entered in the Cash Book. (iii) Cheque amounting to 88,678 issued before June, 30,2024 but not yet presented to Bank. (iv) One payment of 4,590 was recorded in the Cash Book as if there is no bank column. (v) The company paid - 15,500 to a creditor and received a cash discount @2%. The cashier erroneously entered the gross amount in the bank column of the Cash Book. (vi) A debit of 5,700 appeared in the Bank Statement for an unpaid cheque, which had been returned marked 'out of date'. The cheque had been re-dated by the customer and paid into the Bank again on July, 8,2024. (vii) Cheques deposited in bank but not yet cleared amount to 45,789. (viii) Dividends of 1,980 collected by the Bank was not recorded in the Cash Book. (ix) Amount of 2,340 wrongly credited by bank to company account for which no details are available. (x) On June, 25,2024 the credit side of bank column of the Cash Book was overcast by - 6,789.

Suggested Answer and Working Notes:

Bank Reconciliation Statement of M/s XYZ Limited as on 30 th June, 2024 Particulars Details (₹) Amount (₹) Balance as per the Cash Book (Cr.) 24,768 Add: Bank charges not entered in the cash book 350 Cheques issued but not recorded in cash book 4,590 Cheques deposited but not cleared 45,789 Cheque returned out of date in pass book 5,700 56,429 81,197 Less: Cheque issued but not presented to Bank (88, 678) Discount received wrongly entered in the bank column of cash book (310) Dividend collected by bank not recorded in cash book (1, 980) Amount wrongly credited by Bank (2, 340) Credit side of the bank column overcast (6, 789) (₹ 1,00,097) Balance as per the Pass Book (credit) (18, 900) Alternatively, if the books are to be closed on 30 th June, then adjusted cash book will be prepared. In that case the solution will be as given below: Cash Book (Bank Column) Particulars Amount (₹) Particulars Amount (₹) To discount 310 By balance b/d 24,768 To dividends 1,980 By bank charges not entered in cash book 350 To credit side of the bank column overcast 6,789 By payment recorded in the cash column of cash book 4,590 To balance c/d 26,329 By cheque returned out of date 5,700 35,408 35,408 Bank Reconciliation Statement Particulars Amount (₹) Balance as per the Cash Book (Cr.) (corrected) 26,329 Add: Cheque deposited but not cleared 45,789 Less: Cheques issued not yet presented (88, 678) Amount wrongly credited by bank (2, 340) Balance as per Pass Book (Credit) (18, 900) Alternative solution – Alternatively, in point (v) of the question, if it is assumed that the amount paid - 15,500 is a net amount. then the discount will be - 316 {(i.e. (₹ 15,500/98 %) x 2%) and accordingly the solution will be: Bank Reconciliation Statement of M/s XYZ Limited as on June, 30,2024 Particulars Amount (₹) Amount (₹) Balance as per Cash Book (Cr.) 24,768 Add: Bank Charges not entered in cash book 350 Cheques issued but not entered in cash book 4,590 Cheque returned out of date entered in Pass Book 5,700 Cheque deposited but not cleared 45,789 56,429 81,197 Less: Cheque issued but not presented to bank (88, 678) Discount received wrongly entered in bank column of cash book (316) Dividend collected by Bank not recorded in cash book (1, 980) Amount wrongly credited by Bank (2, 340) Credit side of the bank column overcast (6, 789) (₹ 1,00,103) Balance as per Pass Book (Cr.) (18, 906) Alternatively, if the books are to be closed on 30 th June, then adjusted cash book will be prepared. In that case the solution will be as given below: Cash Book (Bank Column only) Date Particulars (₹) Date Particulars (₹) June-30 To Discount 316 June-30 By Balance b/d 24,768 To Dividends 1,980 By bank charges not entered in cash book 350 To credit side of the bank column overcast 6,789 By payment recorded in the cash column of cash book 4,590 To Balance c/d 26,323 By cheque returned out of date 5,700 35,408 35,408 Bank Reconciliation Statement as on June, 30,2024 Particulars Amount (₹) Balance as per Cash Book (Cr) 26,323 Add: Cheque deposited but not cleared 45,789 Total 72,112 Less: Cheque issued but not presented (88, 678) Amount wrongly credited by Bank (2, 340) Balance as per Pass Book (Cr.) (18, 906)

Topics: Bank Reconciliation Statement

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