From the following particulars prepare the bang reconciliation stateme...
Bank Reconciliation Statement for Businessman as of 31st March 2024
The Bank Reconciliation Statement is prepared to reconcile the cash book balance with the bank statement balance, considering various adjustments.
Cash Book Balance
- Overdraft as per cash book: 24,000
Adjustments to Cash Book
- Cash received from HC entered in bank column: +3,150
- Cash short in bank column: -1,000
- Deposited but not collected (in bank statement): +8,950
- Bill sent to bank for collection but not entered in cash book: +4,200
- Bank charges recorded twice: -40
- Noting charges debited for discounted bill: -60
Adjustments to Bank Statement
- Cheque presented on 26th March but not cleared until 6th April: -3,000
- Collection of discounted bill collected by bank after 31st March: -24,800
Calculation of Adjusted Balance
1. Starting with the cash book overdraft: 24,000
2. Adjustments:
- +3,150 (HC cash)
- -1,000 (short cash)
- +8,950 (deposited)
- +4,200 (collection not recorded)
- -40 (double bank charges)
- -60 (noting charges)
- -3,000 (cheque not cleared)
- -24,800 (bill collection)
Total Adjustments
- Total Adjustments = 3,150 - 1,000 + 8,950 + 4,200 - 40 - 60 - 3,000 - 24,800 = -13,800
Final Bank Reconciliation Statement
- Cash Book Balance after adjustments = 24,000 + (-13,800) = 10,200 (overdraft)
This statement reconciles the differences between the cash book and the bank statement, providing clarity on the overdraft position as of 31st March 2024.
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