ILLUSTRATION 5. (When Cash Book is prepared first and then Bank Reconciliation Statement) Following is the Cash Book (Bank columns only) of M/s B.R.S. Limited for the month of March, 2015: $ 1,55,200 9,600 To Balance b/d 14,070. By Payments To Receipts 1,50,730 By Balance c/d 1,64,800 1,64,800 On scrutiny of the bank statements you find that: (a) The bank statement shows an overdrawn balance at $ 1,240. (b) Bank charges of 350 shown on the bank statement have not been entered in the cash book.© A cheque drawn for $ 470 has been entered as a receipt. (d) A cheque for $180 has been returned by the bank but not written back in the cash book. The opening balance should have been carried down as $ 14,700. (f) The cheques paid to supplier for $2,140, $3,700 and $300 have not yet been presented to the bank. (g) The last pay-in-slip of the month showing deposit of$ 15,420 has not yet been credited by the bank. (h) The bank has debited a cheque for $720 by mistake to the company's account. You are required to : (i) Rewrite the Cash Book for the month, March 2015, and (ii) Prepare a statement reconciling the adjusted balance in the cash book with the balance as per the bank statement.

ILLUSTRATION 5. (When Cash Book is prepared first and then Bank Reconciliation Statement) Following is the Cash Book (Bank columns only) of M/s B.R.S. Limited for the month of March, 2015: $ 1,55,200 9,600 To Balance b/d 14,070. By Payments To Receipts 1,50,730 By Balance c/d 1,64,800 1,64,800 On scrutiny of the bank statements you find that: (a) The bank statement shows an overdrawn balance at $ 1,240. (b) Bank charges of 350 shown on the bank statement have not been entered in the cash book.© A cheque drawn for $ 470 has been entered as a receipt. (d) A cheque for $180 has been returned by the bank but not written back in the cash book. The opening balance should have been carried down as $ 14,700. (f) The cheques paid to supplier for $2,140, $3,700 and $300 have not yet been presented to the bank. (g) The last pay-in-slip of the month showing deposit of$ 15,420 has not yet been credited by the bank. (h) The bank has debited a cheque for $720 by mistake to the company's account. You are required to : (i) Rewrite the Cash Book for the month, March 2015, and (ii) Prepare a statement reconciling the adjusted balance in the cash book with the balance as per the bank statement.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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