From the following information (as on 31.3.2016), prepare a Bank Rec: onciliation Statement after making necessary amendments in the Cash-book: Bank balance as per Cash Book (Dr.) Cheques deposited, but not yet credited Cheques issued but, not yet presented for payment Bank_ charges debited by Bank but not recorded in Cash-book Dividend directly collected by bank Insurance premium paid by bank as per standing instruction not intimated Cash sales wrongly recorded in the bank column of the Cash-book Customer's cheque dishonoured by bank not recorded in Cash-book Wrong Credit given by bank 3,25,000 4,47,500 3,56,200 1,250 12,500 15,900 25,500 13,000 15,000 Also show the bank balance that will appear in the Trial Balance as on 31.3.2016.

Pass the necessary Journal entries to rectify the following errors, using a Suspense Account: (i) Goods of the value of 500 returned by Mr. A were entered in the Sales Day Book and posted there from to the credit of his account; (ii) 250 entered in the Sales Returns Book, has been posted to the debit of Mr. R, who returned the goods; (iii) A sale of 700 made to Mr. Q was correctly entered in the Sales Day Book but wrongly posted to the debit of Mr. S as 70; (iv) The total of "Discount allowed" Column in the Cash Book for September amounting to 350 was not posted. [Sept. 2024, 4 Marks]

Meaning of Bank Reconciliation Statement.

Importance of bank reconciliation to an industrial unit. [RTP Jan 2025]

The interest charged by Banker to customer on overdrawn account is called Red ink interest.

Bank reconciliation statement is prepared to arrive at the bank balance.

Interest charged by the bank will be deducted, when the overdraft as per the cash book is the starting point for making the bank reconciliation statement.