From the following particulars, prepare the bank Reconciliation Statement of businessman as on 31st March,2024 Sl. No. Particulars ₹ 1. Bank Overdraft as per cash book 24,000 2. Cheque deposited as per bank statement but non recorded in cash book 4,000 3. Cash received from Exe was entered in bank column of cash book 3,150 4. Debit side of the bank column casted short 1,000 5. A cheque for ₹9,000 deposited but collection as per bank statement 8,950 6. Bills sent to the bank for collection, collected by the bank but not recorded in cash book 4,200 7. Bank charges recorded twice in cash book 40 8. Noting charges debited in Pass for Discounted bill dishonored 60 9. Cheques deposited on 25th March,2024 but collected by Bank on 5th April, 2024 4800 10. Cheques issued on 26th March, 2024 'but presented for encashment on 6th April, 2024 3000 [June 2024, 5 Marks]

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.