On 31st March, 2008, the Cash Book of Mr. David showed an Overdraft Balance of $19,000.00. This balance did not agree with the balance as per PassBook. The following discrepancies were noted on comparing Cash Book with Pass Book. 1. Cheque for $5,000.00 paid into the bank for collection on 20th March 2008 has not yet been collected. 2. Cheques for $15,000.00 were issued on 24th March 2008, out of which cheques for $10,000.00 were presented during March 2008. 3. An amount of $1,000.00 for interest on overdraft was debited in the Pass Book but was intimated to Mr. David on 4th April 2008. 4. Mr. David paid into his bank account as the amount of $3,000.00 but it was wrongly credited to Mr. Denial's Account. 5. On 20th March 2008 the bank received did end of $10,000.00 from a company where Mr. David's has invested his money, the same had been recorded in Cash Book on 31st March 2008. 6. Cheque of $2,500.00 was shown in Pass Book as dishonored. You are required to prepare a Bank Reconciliation Statement as of 31st March 2008.
On 31st March, 2008, the Cash Book of Mr. David showed an Overdraft Balance of $19,000.00. This balance did not agree with the balance as per PassBook. The following discrepancies were noted on comparing Cash Book with Pass Book. 1. Cheque for $5,000.00 paid into the bank for collection on 20th March 2008 has not yet been collected. 2. Cheques for $15,000.00 were issued on 24th March 2008, out of which cheques for $10,000.00 were presented during March 2008. 3. An amount of $1,000.00 for interest on overdraft was debited in the Pass Book but was intimated to Mr. David on 4th April 2008. 4. Mr. David paid into his bank account as the amount of $3,000.00 but it was wrongly credited to Mr. Denial's Account. 5. On 20th March 2008 the bank received did end of $10,000.00 from a company where Mr. David's has invested his money, the same had been recorded in Cash Book on 31st March 2008. 6. Cheque of $2,500.00 was shown in Pass Book as dishonored. You are required to prepare a Bank Reconciliation Statement as of 31st March 2008.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On 31st March, 2008, the Cash Book of Mr. David showed an Overdraft Balance of $19,000.00. This balance did not agree with the balance
as per PassBook. The following discrepancies were noted on comparing Cash Book with Pass Book.
1. Cheque for $5,000.00 paid into the bank for collection on 20th March 2008 has not yet been collected.
2. Cheques for $15,000.00 were issued on 24th March 2008, out of which cheques for $10,000.00 were presented during March 2008.
3. An amount of $1,000.00 for interest on overdraft was debited in the Pass Book but was intimated to Mr. David on 4th April 2008.
4. Mr. David paid into his bank account as the amount of $3,000.00 but it was wrongly credited to Mr. Denial's Account.
5.
On 20th March 2008 the bank received did end of $10,000.00 from a company where Mr. David's has invested his money, the same
had been recorded in Cash Book on 31st March 2008.
6. Cheque of $2,500.00 was shown in Pass Book as dishonored.
You are required to prepare a Bank Reconciliation Statement as of 31st March 2008.
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