On May 31, 2018 the cash book of a trading organization showed a balance of Rs. 15,600 in bank account and bank statement showed a balance of Rs. 40,000. The comparison of cash book and bank statement disclosed the following points: a) Cheques of Rs. 5,000, Rs. 15,000 and Rs. 50,000 were issued to different suppliers during May 2018 but only a cheque of Rs. 5000 was presented for payment into the bank till May 31, 2018. b) A cheque of Rs. 25,000 was deposited into the bank but it was not cleared till the last day of the month. c) Bank deducted cheque book charges Rs. 500 but it was not recorded in the cash book. d) A cheque of a customer for Rs.14500 was dishonoured but this effect was not recorded in the cash book. e) Withholding tax Rs. 600 was deducted during the month on cash withdrawal but it was not recorded in the cash book. f) A cheque of Rs. 51000 was issued for the purchase of merchandise but it was recorded in the cash book as Rs. 15,000 g) A cheque of Rs. 25000 was deposited into the bank but it was recorded by the bank as Rs. 52000 h) Bank deducted locker charges Rs. 3000 whereas the organization was not using any locker service. i) A customer directly deposited Rs. 12000 into the bank but it was not recorded in cash book. Required: Prepare Bank Reconciliation Statement for the month ended May 31, 2018
4. On May 31, 2018 the
bank account and bank statement showed a balance of Rs. 40,000. The comparison of cash book
and bank statement disclosed the following points:
a) Cheques of Rs. 5,000, Rs. 15,000 and Rs. 50,000 were issued to different suppliers
during May 2018 but only a cheque of Rs. 5000 was presented for payment into the bank
till May 31, 2018.
b) A cheque of Rs. 25,000 was deposited into the bank but it was not cleared till the last day
of the month.
c) Bank deducted cheque book charges Rs. 500 but it was not recorded in the cash book.
d) A cheque of a customer for Rs.14500 was dishonoured but this effect was not recorded in
the cash book.
e) Withholding tax Rs. 600 was deducted during the month on cash withdrawal but it was
not recorded in the cash book.
f) A cheque of Rs. 51000 was issued for the purchase of merchandise but it was recorded in
the cash book as Rs. 15,000
g) A cheque of Rs. 25000 was deposited into the bank but it was recorded by the bank as Rs.
52000
h) Bank deducted locker charges Rs. 3000 whereas the organization was not using any
locker service.
i) A customer directly deposited Rs. 12000 into the bank but it was not recorded in cash
book.
Required:
Prepare
Step by step
Solved in 2 steps
