Perfect Pvt. Ltd., has two accounts with Ever Bank Ltd. The account were known as 'Account-I' and 'Account- II '., As at December 31, 2015 the bala...

Question

Perfect Pvt. Ltd., has two accounts with Ever Bank Ltd. The account were known as 'Account-I' and 'Account- II '., As at December 31, 2015 the balance as per A/c books reflected the following: Account-I ₹1,25,000 Regular balance. Account- II ₹1,11,250 Overdraft balance. The accountant failed to tally the balance with the Pass book and the following information was available: 1. The Bank has charged Interest 0n Account-II ₹11,375 and Credited Interest on Account- I,₹ 1,250. These were not recorded by the accountant. 2. ₹ 12,500 drawn on Dec.10, 2015, from Account- I was recorded in the books of Account- II. • 3. Bank charges of ₹150 and ₹1,125 for Account- I and Account- II were not recorded in the books. 4. A deposit of ₹ 17,500 in Account-I was Wrongly entered in Account-II in the books. 5. Two cheques of ₹12,500 and₹ 13,750 deposited in Account-I, but entered In Account in books, were dishonoured. The entries for dishonoured cheques were entered correctly in Account- II 6. Cheques issued for ₹1,50,000 and ₹ 15,000 from Accounts-I and II respectively, were not presented till 5th January, 2016 . 7. Cheques deposited ₹1,25,000 and ₹1,17,500 in Accounts-I and II respectively, were credited by bank only on February, 2, 2016. You are required to prepare the Bank Reconciliation Statement for Accounts-I And II

Accepted Answer

Answer Solution: Bank reconciliation statement : Account – I Particulars Amount (Dr.) Amount (Cr.) Balance as per cash book (Deposit) Interest credited by bank Withdrawal from bank not yet recorded by us Bank charges charged by bank Cheque deposited but not yet entered in our book Cheque issued but not yet paid Cheque deposited but not yet paid realised Balance as per pass book (Deposit) 1,25,000 1,250 17,500 1,50,000 12,500 150 1,25,000 1,56,100 2,93,750 2,93,750 Bank reconciliation statement: Account –II Particulars Amount (Dr.) Amount (Cr.) Balance as per cash book (O.D.) Interest charged by bank Withdrawal from A/c-1 wrongly recorded in A/c-II Bank charges charged by bank Deposit in A/ c- I is wrongly entered in A/ c- II Cheque issued but not yet paid Cheque deposited but not yet realised Balance as per pass book (O.D.) 12,500 15,000 2,31,250 1,11,250 11,375 1,125 17,500 1,17,500 2,58,750 2,58,750 Note: In both the BRS no effect has come for item (e) because entry for deposit as well as its dishonour both has come in A/ c-II. That means it has nil effect every where. Entry in our books for items (b) & ( d) will be as follows, at the time of finalization: Entry for (b) Bank A/c II Dr. 12500 To Bank A/c I 12500 Entry for ( d) Bank A/ c I Dr. 17500 To Bank A/ c II 17500

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