Prepare the bank reconciliation statement of Mohan as on 31st March, 2011 from the following information
- Balance as per passbook (debit) rs 31.700
- Bank collected a cheque of Rs 3,200 on behalf of Dheeraj but wrongly credited to Mohan Account
- Withdrawal column of cashbook was undrcast by 870
- Cheque of Rs 6,782 deposited into bank was recorded as 8,762 in passbook
- A cheque of Rs 9,000 collected from Megha was debited in the passbook
- Passbook showed a credit for a cheque amounting Rs 6,800 deposited by Dheeraj
- Cheque of Rs 5,100 issued ot Divya was recorded twice in the passbook.
- A cheque of Rs 6,400 deposited was taken in the cash column
Please solve this and explain me 2 and 8
Bank Reconciliation Statement
as on March 31,2011
Overdraft balance as per the Pass Book
Collected cheque of Rs 3,200 on behalf of Dheeraj but wrongly credited in Mohan’s Account
Withdrawal column of Cash Book was undercasted by Rs 870
Cheque of Rs 6,782 deposited but credited in passbook with amount of Rs 8,762
Cheque of Rs 9,000 received from Megha debited in the passbook
Cheque of Rs 6,800 directly deposited by Dheeraj in Bank
Cheque issued to Divya was recorded twice in the Passbook
No adjustment required
Overdraft as per the Cash Book
1. In the adjustment no 2 bank has collected a cheque of Rs 3,200 on behalf of Dheeraj but by mistake bank credited this cheque in Mohan’s account. As a result of this, Mohan’s passbook balance has increased by Rs 3,200, but his Cash Book remained unupdated. Therefore, in order to rectify this error, we should deduct Rs 3,200 from Mohan’s passbook balance.
2. In the adjustment no 8, there is a cheque of Rs 6,400 which was deposited in bank but instead of debiting this amount in the Bank Column of Cash Book, it was wrongly debited in the Cash Column. As a result of this, the Cash Column stands increased by Rs 6,400 and the Bank column remains at the same (unupdated) balance (as it was before this transaction). Assuming that bank has not yet credited this cheque in Mohan’s account, the Bank Balance in Cash-Book as well as in the Pass-Book have the same balance. Thus, in this case, no adjustment is to be made in the BRS.