but not yet collected, and (iii) due to an error in the passbook. The step wise preparation of bank reconciliation statement is shown in figure . . Illustration The following is the summary of a cash book for December, .
Cash Book (Bank Column) Receipts , Balance b/d , Balance c/d , Payments , , , All receipts are banked and payments are made by cheques. On investigation the following are observed: Bank charges of Rs. , entered in the bank statement have not been entered in cash book. Cheques drawn amounting to Rs.
, have not been presented to the bank for payment. Cheques received totalling Rs. , have been entered in the cash book and deposited in the bank, but have not been credited by the bank until January, . A cheque for Rs.
has been entered as a receipt in the cash book instead of as payment. A cheque for Rs. has been debited by the bank in error. .
A cheque received for Rs. has been returned by the bank and marked “No funds available”, no adjustment had been made in the cash book. . All dividends receivable are credited directly to the bank account.
During December, an amount of Rs. was credited by the bank and no entry is made in the cash book. . A cheque drawn for Rs.
has been incorrectly entered in the cash book as Rs. . . The balance brought forward should have been Rs.
. . The bank statement as on December, , showed an overdraft of Rs. , .
(a) You are required to prepare an amended cash book and (b) Prepare a bank reconciliation statement as on Dec. , . Solution Amended Cash Book (Bank column) Dr. Cr.
Date Receipts L.F. Amount Date Payments L.F. Amount Dividends received Balance b/d , Bank charges , Adj. for cheque drawn for Adj.
regarding cheque Rs. entered as Rs. entered as receipt Adj. of balance brought Adj.
regarding cheque forward returned Balance c/d , , , Balance b/d ,