how should we do the amended cash book? Can you please illustrate with an example?

The following example will help you understand how amended Cash Book is prepared and subsequently the preparation of Bank Reconciliation Statement in such cases.

 

From the following particulars prepare a statement with amended Cash Book balance showing the balance that would appear in the Pass Book of Mr. Harsh as on 31st Dec., 2012:

(a) The overdraft as per cash book on 31st Dec., 2012 was Rs 3170.

(b) Cheques issued but not cashed prior to 31st Dec., 2012 amounted to Rs 584.

(c) Cheques paid into Bank but not cleared were for Rs 1625.

(d) Bank charges for the above period also debited in the Pass Book amounted to Rs 15.

(e) Interest on overdraft for six months ending 31st Dec., 2012, Rs 80 is debited in the pass book.

(f) Interest on investments collected and credited by the Bank was Rs 600.

 

 

Cash Book (Bank Column)

Dr.

  

Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

2012

  

2012

  

(f)

Interest on Investments

600

(a)

Balance b/d

3,170

 

Balance c/d

2,665

(d)

Bank Charges

15

   

(e)

Interest on Overdraft

80

  

3,265

  

3,265

      

Bank Reconciliation Statement

as on December 31, 2012

Particulars

Amount

(Rs)

Amount

(Rs)

Overdraft Balance as per Cash Book (adjusted)

 

2,665

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

  

(c) Cheque paid but not cleared

1,625

1,625

   

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

  

(b) Cheque issued but not encashed

584

584

Closing Balance of Pass Book(Cr)

 

3,706


 

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