From the following particulars, prepare a Bank Reconciliation Statement on 31st March, 2021: Particulars Amount(₹) Bank balance as per Passbook Bills discounted dishonoured not recorded in Cash Book Cheque received entered twice in Cash Book Bank charges entered twice in Cash Book Insurance premium paid directly by Bank under standing instruction Cheque issued but not presented to Bank for payment Cheque received, but not sent to Bank Cheque deposited in Bank, but no entry passed in the Cash Book Credit side of the Bank column cast short 25,00,000 12,50,000 25,000 5,000 1,50,000 12,50,000 28,00,000 12,50,000 5,000 [June 2022, 5 Marks]; [MTP Jan. 2025; Modified Figures-3X]

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.