On 31st December, 2012 the bank balance as per the cash book of M/s Mahajan & Sons stood at Rs 10800. On examining the bank Current Account No. 1 , transactions with the corresponding pass book , the following facts are noticed:

(a) That a cheque for Rs 400 drawn on No. 2 Account has been wrongly debited to No. 1 Account by the bank.

(b) That a cheque for Rs 500 paid in No. 2 Account has been wrongly credited to No. 1 Account.

(c) That a cheque for Rs 300 paid in No. 1 Account stands wrongly credited to No. 2 Account.

(d) That a dishonoured cheque for Rs 200 relating to Account No. 1, the entry in respect of which has been passed through the cash book stands wrongly charged to No. 2 Account.

(e) That a cheque for Rs 1200 paid on 29.12.2012 stands credited in the pass book on 3rd January, 2012.

Prepare a bank reconciliation statement as at 31.12.2012 from the above information.

The answer given in the book is : Balance as per pass book = Rs 9600

Bank Reconciliation Statement

as on December 31, 2012

Particulars

Amount

(Rs)

Amount

(Rs)

Bank Account No 1 Balance as per Cash Book

 

10,800

Add: Transaction increasing balances of Given Book (i.e. Cash Book)

 

 

(b) Cheque of Rs 500, paid in Account no 2 but wrongly credited in the Account no 1

500

 

(d) Cheque of Rs 200 related to Account no 1 got dishonoured and was duly recorded in the Cash Book but wrongly charged to Account no 2.

200

700

 

 

 

Less: Transactions reducing Balances of Given Book (i.e. Cash Book)

 

 

(a) Cheque of Rs 400, drawn on Account no 2 but wrongly debited in the Account no 1 by the bank

400

 

(c) Cheque paid in Account no 1, but wrongly credited in Account no 2

300

 

(e) Cheque deposited but not credited by the bank till Dec.31, 2012

1,200

1,900

Closing Balance of Pass Book

 

9,600

 

 

 

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