19. Prepare Bank Reconciliation Statement from the following:

On 31st March, 2024, a merchant’s Cash Book showed a credit bank balance of 10,500 but due to the following reasons the Pass Book showed a difference:

  1. A cheque of 540 issued to Mohan has not been presented for payment.
  2. A post-dated cheque for 100 has been debited in the bank column of the Cash Book but under no circumstances was it possible to present it.
  3. Four cheques of 1,200 sent to the bank have not been collected so far. A cheque of 400 deposited in the bank has been dishonoured.
  4. As per instructions, the bank paid 50 as Fire Insurance premium but the entry has not been made in the Cash Book.
  5. There was a debit in the Pass Book of 15 in respect of bank charges and a credit of 25 for interest on Current Account but no record exists in the Cash Book.
  6. Cheque of 5,000 dated l5th April, 2024 issued to M & Co. was dishonoured being post-dated. It was also not recorded in the books of account yet.

T.S.Grewal/Session 2024-25/Practical Problems/Q-19

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