Please confirm if this solution is correct
Hi Karan
The solution is correct except for transaction no. (c). In this, the cheque received from customer was recorded in the cash book but omitted to be banked. This implies, balance as per Cash Book > balance as per Pass Book, so, in order to reconcile the books, it will be shown under 'Plus Items' Column.
The complete solution to this question is provided below:
The solution is correct except for transaction no. (c). In this, the cheque received from customer was recorded in the cash book but omitted to be banked. This implies, balance as per Cash Book > balance as per Pass Book, so, in order to reconcile the books, it will be shown under 'Plus Items' Column.
The complete solution to this question is provided below:
| Bank Reconciliation Statement as on Dec 31, 2005 |
||
| Particulars | Plus Amount (Rs) |
Minus Amount (Rs) |
| Bank Balance as per Pass Book (Cr.) | 62,000 | |
| Add: | ||
| (a) Cheques deposited but not collected | 8,000 | |
| (c) Cheque received from customer was entered in Cash Book but omitted to be banked | 1,000 | |
| (d) Bank Charges | 1,000 | |
| Less: | ||
| (b) Cheques issued but not presented for payment | 8,500 | |
| (d) Bank allowed interest | 2,000 | |
| (e) Interest on investments collected by bank | 2,500 | |
| Balance as per Cash Book (Dr.) | 59,000 | |
| 72,000 | 72,000 | |
