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Question
Select the most appropriate alternative from those given and rewrite the following statement:
Debiting an entry in Cash Book ___________ cash balance.
Options
increases
decreases
nullifies
none of the above
Solution
Debiting an entry in Cash Book increases cash balance.
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RELATED QUESTIONS
From the following particulars of Kamakshi traders, prepare a bank reconciliation statement as on 31st March, 2018.
- Debit balance as per cash book ₹ 10,500
- Cheque deposited into bank amounting to ₹ 5,500 credited by bank, but entered twice in the cash book
- Cheques issued and presented for payment amounting to ₹ 7,000 omitted in the cash book
- Cheque book charges debited by the bank ₹ 200 not recorded in the cash book.
- Cash of ₹ 1,000 deposited by a customer of the business in cash deposit machine not recorded in the cash book.
From the following information, prepare bank reconciliation statement to find out the bank statement balance as on 31st December, 2017.
| Particulars | ₹ |
| 1. Balance as per cash book | 15,000 |
| 2. Cheques deposited but not yet credited | 1,000 |
| 3. Cheques issued and entered in the cash book before 31st December 2017 but not presented for payment until that date | 1,500 |
| 4. Dividend directly received by bank | 200 |
| 5. Direct payment made by bank for rent | 1,000 |
| 6. Locker rent charged by the bank not recorded in cash book | 1,200 |
| 7. Wrong debit given by the bank on 30th December 2017 | 500 |
| 8. A payment made through net banking has been entered twice in the cash book | 300 |
From the following particulars of Raja traders, prepare a bank reconciliation statement as on 31st January, 2018.
- Balance as per bank statement ₹ 5,000
- Cheques amounting to ₹ 800 had been recorded in the cash book as having been deposited into the bank on 25th January 2018, but were entered in the bank statement on 2nd February 2018.
- Amount received by bank through NEFT amounting to ₹ 3,000, omitted in the cash book.
- Two cheques issued for ₹ 3,000 and ₹ 2,000 on 29th March 2018. Only the first cheque is presented for payment.
- Insurance premium on motor vehicles for ₹ 1,000 paid by the bank as per standing instruction not recorded in the cash book.
- Credit side of cash book was undercast by ₹ 700
- Subsidy received directly by the bank from the state government amounting to ₹ 10,000, not entered in cash book.
Prepare bank reconciliation statement as on 31st March, 2017 from the following extracts of cash book and bank statement.
| Dr. | Cash book (Bank column only) | Cr. | |||
| Date | Receipts | Amount ₹ | Date | Payments | Amount ₹ |
| 2017 March |
2017 March |
||||
| 1 | To Balance b/d | 9,000 | 4 | By Drawings | 1,700 |
| 3 | To Ram | 2,200 | 8 | By Sumi | 3,300 |
| 9 | To Prem | 1,500 | 12 | By Salary | 2,800 |
| 16 | To Pavithra | 3,400 | 16 | By Kayal | 1,700 |
| 23 | To Devi | 2,600 | 18 | By Pooja | 4,200 |
| 27 | To Mani | 1,100 | 26 | By Sam | 2,000 |
| 30 | To Shankar | 350 | 28 | By Raheem | 1,100 |
| 30 | By Rent | 1,100 | |||
| 30 | By Balance c/d | 2,250 | |||
| 20,150 | 20,150 | ||||
| Date | Particulars | Dr. Withdrawals ₹ |
Cr. Deposits ₹ |
Balance Dr./Cr. |
| 2017 March |
||||
| 1 | By balance b/d | 9,000 Cr. | ||
| 4 | To cheque- drawings | 8,300 Cr. | ||
| 5 | By cheque- Ram | 700 | 2,200 | 10,500 Cr. |
| 9 | To cheque – Sumi | 7,200 Cr. | ||
| 11 | By cheque- Prem | 3,500 | 1,500 | 8,700 Cr. |
| 12 | To cheque – Salary | 5,900 Cr. | ||
| 17 | To cheque – Kayal | 2,800 | 4,200 Cr. | |
| 20 | By cheque- Devi | 1,700 | 2,600 | 6,800 Cr. |
| 30 | By interest received | 900 | 7,700 Cr. | |
| 30 | To bank charges | 15 | 7,685 Cr. |
On March 31 2017 the cash book showed a balance of ₹ 3,700 as cash at bank, but the bank passbook made up to same date showed that cheques for ₹ 700, ₹ 300 and ₹ 180 respectively had not presented for payment, Also, cheque amounting to ₹ 1,200 deposited into the account had not been credited. Prepare a bank reconciliation statement
The cash book shows a bank balance of ₹ 7,800. On comparing the cash book with passbook the following discrepancies were noted:
(a) Cheque deposited in bank but not credited ₹ 3,000
(b) Cheque issued but not yet present for payment ₹ 1,500
(c) Insurance premium paid by the bank ₹ 2,000
(d) Bank interest credit by the bank ₹ 400
(e) Bank charges ₹ 100
(d) Directly deposited by a customer ₹ 4,000
Bank balance of ₹ 40,000 showed by the cash book of Atul on December 31, 2016. It was found that three cheques of ₹ 2,000, ₹ 5,000 and ₹ 8,000 deposited during the month of December were not credited in the passbook till January 02, 2017. Two cheques of ₹ 7,000 and ₹ 8,000 issued on December 28 were not presented for payment till January 03, 2017. In addition to it bank had credited ₹ 325 as interest and had debited him with ₹ 50 as bank charges for which there were no corresponding entries in the cash book.
Prepare a bank reconciliation statement as on December 31, 2016.
On comparing the cash book with passbook of Naman it is found that on March 31, 2014, bank balance of ₹ 40,960 showed by the cash book differs from the bank balance with regard to the following:
(a) Bank charges ₹ 100 on March 31, 2017, are not entered in the cash book.
(b) On March 21, 2017, a debtor paid ₹ 2,000 into the company’s bank in settlement of his account, but no entry was made in the cash book of the company in respect of this.
(c) Cheques totaling ₹ 12,980 were issued by the company and duly recorded in the cash book before March 31, 2017, but had not been presented at the bank for payment until after that date.
(d) A bill for ₹ 6,900 discounted with the bank is entered in the cash book with recording the discount charge of ₹ 800.
(e) ₹ 3,520 is entered in the cash book as paid into bank on March 31st, 2017, but not credited by the bank until the following day.
(f) No entry has been made in the cash book to record the dishonor on March 15, 2017 of a cheque for ₹ 650 received from Bhanu.
Prepare a reconciliation statement as on March 31, 2017.
Prepare bank reconciliation statement as on December 31, 2017. This day the passbook of Mr. Himanshu showed a balance of ₹ 7,000.
(a) Cheques of ₹ 1,000 directly deposited by a customer.
(b) The bank has credited Mr. Himanshu for ₹ 700 as interest.
(c) Cheques for ₹ 3,000 were issued during the month of
December but of these cheques for ₹ 1,000 were not presented during the month of December.
Balance as per passbook of Mr. Kumar is 3,000.
(a) Cheque paid into bank but not yet cleared
Ram Kumar ₹1,000
Kishore Kumar ₹ 500
(b) Bank Charges ₹ 300
(c) Cheque issued but not presented
Hameed ₹ 2,000
Kapoor ₹ 500
(d) Interest entered in the passbook but not entered in the cash book ₹ 100.
Prepare a bank reconciliation statement.
The passbook of Mr. Mohit current account showed a credit Balance of ₹ 20,000 on dated December 31, 2016. Prepare a Bank Reconciliation Statement with the following information.
(i) A cheque of ₹ 400 drawn on his saving account has been shown on current account.
(ii) He issued two cheques of ₹ 300 and ₹ 500 on of December 25, but only the 1st cheque was presented for payment.
(iii) One cheque issued by Mr. Mohit of ₹ 500 on December 25, but it was not presented for payment whereas it was recorded twice in the cash book.
Prepare bank reconciliation statement.
(i) Overdraft shown as per cash book on December 31, 2017 ₹ 10,000.
(ii) Bank charges for the above period also debited in the passbook ₹ 100.
(iii) Interest on overdraft for six months ending December 31, 2017 ₹ 380 debited in the passbook.
(iv) Cheques issued but not encashed prior to December 31, 2017 amounted to ₹ 2,150.
(v) Interest on Investment collected by the bank and credited in the passbook ₹ 600.
(vi) Cheques paid into bank but not cleared before December, 31 2017 were ₹ 1,100.
On December 31, 2017, the cash book of Mittal Bros showed an overdraft of ₹ 6,920. From the following particulars prepare a Bank Reconciliation Statement and ascertain the balance as per passbook.
(1) Debited by bank for ₹ 200 on account of interest on overdraft and ₹ 50 on account of charges for collecting bills.
(2) Cheques drawn but not encashed before December, 31 2017 for ₹ 4,000.
(3) The bank has collected interest and has credited ₹ 600 in passbook.
(4) A bill receivable for ₹ 700 previously discounted with the bank had been dishonoured and debited in the passbook.
(5) Cheques paid into bank but not collected and credited before December 31, 2017 amounted ₹ 6,000
Overdraft shown by the passbook of Mr. Murli is ₹ 20,000. Prepare bank reconciliation statement on dated March 31, 2017.
(i) Bank charges debited as per passbook ₹ 500.
(ii) Cheques recorded in the cash book but not sent to the bank for collection ₹ 2,500.
(iii) Received a payment directly from customer ₹ 4,600.
(iv) Cheque issued but not presented for payment ₹ 6,980.
(v) Interest credited by the bank ₹ 100.
(vi) LIC paid by bank ₹ 2,500.
(vii) Cheques deposited with the bank but not collected ₹ 3,500.
From the following particulars, prepare a bank reconciliation statement as at March 31, 2017.
- Balance as per cash book ₹ 3,200
- Cheque issued but not presented for payment ₹ 1,800
- Cheque deposited but not collected upto March 31, 2014 ₹ 2,000
- Bank charges debited by bank ₹ 150
From the following particulars, prepare a bank reconciliation statement as at March 31, 2017.
- Balance as per cash book ₹ 3,200.
- Cheque issued but not presented for payment ₹ 1,800.
- Cheque deposited but not collected upto March 31, 2014 ₹ 2,000.
- Bank charges debited by bank ₹ 150.
From the following particulars, prepare a bank reconciliation statement as at March 31, 2017.
- Balance as per cash book ₹ 3,200.
- Cheque issued but not presented for payment ₹ 1,800 Cheque deposited but not collected up to March 31, 2014 ₹ 2,000.
- Bank charges debited by bank ₹ 150.
From the following particulars, prepare the Bank Reconciliation Statement as of 30th June 2019.
- Credit balance as per Pass Book ₹ 20,000.
- A cheque for ₹ 3,500 was issued and paid by the bank, recorded in the Pass Book as ₹ 5,300.
- The cheque deposited ₹ 9,700 collected by the bank was not recorded in the Cash Book.
- The payment side of the Cash Book was undercast by ₹ 100.
- The electricity bill paid by the bank ₹ 6,200, was recorded twice in the Pass Book.
From the following particulars prepare Bank Reconciliation Statement as on 30th June 2019.
- Credit balance as per Pass Book ₹ 20,000.
- A cheque for ₹ 3,500 was issued and paid by the bank, recorded in the Pass Book as ₹ 5,300.
- The cheque deposited ₹ 9,700 collected by the bank was not recorded in the Cash Book.
- The payment side of the Cash Book was undercast by ₹ 100.
- The electricity bill paid by the bank ₹ 6,200, was recorded twice in the Pass Book.
From the following particulars, prepare a bank reconciliation statement as at March 31, 2017.
- Balance as per cash book ₹ 3,200
- Cheque issued but not presented for payment ₹ 1,800
- Cheque deposited but not collected upto March 31, 2014 ₹ 2,000
- Bank charges debited by bank ₹ 150
From the following particulars, prepare a bank reconciliation statement as at March 31, 2017.
- Balance as per cash book ₹ 3,200
- Cheque issued but not presented for payment ₹ 1,800
- Cheque deposited but not collected upto March 31, 2014 ₹ 2,000
- Bank charges debited by bank ₹ 150
From the following particulars, prepare a bank reconciliation statement as at March 31, 2017.
- Balance as per cash book ₹ 3,200.
- Cheque issued but not presented for payment ₹ 1,800.
- Cheque deposited but not collected upto March 31, 2014 ₹ 2,000.
- Bank charges debited by bank ₹ 150.
Rectify the following errors:
- Credit sales to Mohan Rs 7,000 were not recorded.
- Credit purchases from Rohan Rs 9,000 were not recorded.
- Goods returned to Rakesh Rs 4,000 were not recorded.
- Goods returned from Mahesh Rs 1,000 were not recorded.
From the following particulars, prepare a bank reconciliation statement as at March 31, 2017.
- Balance as per cash book ₹ 3,200.
- Cheque issued but not presented for payment ₹ 1,800.
- Cheque deposited but not collected upto March 31, 2014 ₹ 2,000.
- Bank charges debited by bank ₹ 150.
From the following particulars prepare Bank Reconciliation Statement as on 30th June 2019.
- Credit balance as per Pass Book ₹20,000.
- A cheque for ₹ 3,500 was issued and paid by bank, recorded in Pass Book as ₹ 5,300.
- Cheque deposited ₹ 9,700 collected by bank was not recorded in Cash Book.
- Payment side of Cash Book was undercast by ₹100.
- Electricity bill paid by bank ₹ 6,200 was recorded twice in Pass Book.
