Q.A bill for Rs 6,900 discounted with the bank is entered in the cash book with recording the discount charge of Rs 800.

A.Discount charges of bill was omitted to be recorded in the Cash Book - 800.

can any1 plz xplain dis to me????

As per the question a Bill of Rs 6,900 was discounted with bank at a discount of Rs 800 but at the time of recording this transaction in cash book it is debited with Rs 6,900 instead of Rs 6,100(after charging discount of Rs 800). Therefore the Cash Book Balance stands increased as compared to the Pass Book Balance with the amount of discount i.e. Rs 800. The difference in balances of Cash Book and Pass Book can be reconciled as:

Case I If in question Balance as per Cash Book is given: - Then we will show omission of recording discount of Rs 800 on Minus side of Bank Reconcilation Statement because Cash Book Balance is already increased (with discount of Rs 800) as compared to Pass Book Balance. So in order to make both books balance equal we are reducing this discount of Rs 800 from Cash Book Balance

Case II  If in question Balance as per Pass Book is given: - Then we will show omission of recording discount of Rs 800 on Plus side of Bank Reconcilation Statement.

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 BRS as per cashboo debit side

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 BRS as per cash book balance will get it recorded in the minus items or credit side  as it is our expense and will reduce our cash balance and in BRS as per passbook will get it recporded on the debit side or plus items

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