Prepare a bank reconciliation statement from the following particulars as on 31st March 2018: [Nov. 2018, 10 Marks] Particulars ₹ Debit balance as per bank column of the cash book Cheque issued to creditors but not yet presented to the Bank for payment Dividend received by the bank but not entered in the Cash book Interest allowed by the Bank Cheques deposited into bank for collection but not collected by bank up to this date Bank charges not entered in Cash Book A cheque deposited into hank was dishonoured, but no intimation Received Bank paid house tax on our behalf, but no intimation received from bank in this connection 18,60,000 3,60,000 2,50,000 6,250 7,70,000 1,000 1,60,000 1,75,000

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.