Page 264 - DMGT104_FINANCIAL_ACCOUNTING

Financial Accounting

Notes
Example: Rectification of the Cash Book.
As we have already mentioned that the difference in the bank balances may be due to
some errors or omissions committed by you. So, you have to make necessary amendments
in the cash book first and then prepare a bank reconciliation statement.

Verma Ltd. showed a bank balance of 1,24,250 as on 31st March, 2004. The bank statement,
however, showed a different figure. The following items were detected:
( )

(i) Cheques deposited but not yet credited by the bank 1,74,020
(ii) Cheques issued but not yet presented for payment 1,06,240
(iii) The balance in the bank column of the cash book on page 23 has
been carried forward as 45,720 instead of 45,270.
(iv) Bank charges not yet recorded 1,045
(v) A cheque received from a customer has been wrongly shown in the
cash column of the cash book instead of the bank column 26,740
Cash Book (Bank Column Only)
Dr. Cr.
Date Particulars V JF Amount Date Particulars V JF Amount
No ( ) No ( )
2004 2004
31st To Balance b/d 1,24,250 31st By Carry 450
March March forward error
To cash a/c 26,740 By Bank 1,045
Charges
(Cheque received By Balance 1,49,495
wrongly shown in c/d
cash column)
1,50,990 1,50,990

Bank Reconciliation Statement
As on 31st March, 2004

Particulars Amount Amount
( ) ( )
Bank balance (amended) as per cash book 1,49,495
Add:
Cheques issued but not yet presented for payment 1,06,240
2,55,735
Less:
Cheques deposited but not yet credited by the bank 1,74,020
Balance as per the bank statement 81,715

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