From the following particulars prepare the bank reconciliation stateme...
Bank Reconciliation Statement as of 31st March 2024
To prepare the bank reconciliation statement, we start with the bank overdraft as per the cash book and adjust for various transactions.
1. Opening Balance
- Bank Overdraft as per Cash Book: (24,000)
2. Additions
- Cash received from XC entered in the bank column: 3,150
- Cheque deposited but not recorded in cash book: 4,000
- Bill sent to the bank for collection: 4,200
- Noted cheque error (short casting): 1,000 (adjusting the debit side)
3. Deductions
- Bank charges recorded in cash book: 40
- Noting charges for dishonored bill: 60
- Cheque deposited on 25th March but collected on 5th April: (4,800)
- Cheques issued on 26th March but presented on 6th April: (3,000)
- Collection of cheque was 8,950 instead of 9,000: (50)
4. Calculation
- Adjusted Bank Balance Calculation:
Opening Overdraft: (24,000)
Add: Cash received + Cheque deposits + Bill collection = 3,150 + 4,000 + 4,200 + 1,000 = 12,350
Less: Bank charges + Noting charges + Cheque delay + Collection shortfall = 40 + 60 + 4,800 + 3,000 + 50 = 7,950
Final Bank Balance: (24,000) + 12,350 - 7,950 = (19,600)
5. Conclusion
The adjusted bank overdraft as of 31st March 2024 is (19,600). This reconciles the differences between the cash book and the bank statement, ensuring all transactions are accounted for accurately.
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