XYZ Enterprise Company has a pass book balance of Rs. 58700/- and cash book balance of Rs.68500/- as on 31st march 2014. Compute the correct cash book balance for the transactions and prepare a reconciliation statement.
The transactions are as follows −
Computation of corrected bank balance as per cash book is as follows −
Items (to be added) | Items (to be subtracted) | |
---|---|---|
Direct deposits Direct collections Cheques collected but yet to record in cash book Balance (cash book) | 2000 1900 3800 68500 | |
Cheque dishonored Discounted bill dishonored Bank charges Direct payments Corrected bank balance (cash book) | 1800 7800 500 4200 61900 | |
76200 | 76200 |
The bank reconciliation statement is prepared as follows −
Bank reconciliation statement As on 31st march, 2014 | ||
---|---|---|
Items (to be added) | Items (to be subtracted) | |
Deposited cheque yet to collect Wrongly debited cheque Balance (cash book) Direct deposits | 1900 3500 68500 | |
Issued cheque yet to present Corrected bank balance (cash book) | 12000 61900 | |
73900 | 73900 |