Homework Help is Here – Start Your Trial Now!
Business
Accounting
ILLUSTRATION 5. (When Cash Book is prepared first and then Bank Reconciliation Statement) Following is the Cash Book (Bank columns only) of M/s B.R.S. Limited for the month of March, 2015: $ 1,55,200 9,600 To Balance b/d 14,070. By Payments To Receipts 1,50,730 By Balance c/d 1,64,800 1,64,800 On scrutiny of the bank statements you find that: (a) The bank statement shows an overdrawn balance at $ 1,240. (b) Bank charges of 350 shown on the bank statement have not been entered in the cash book.© A cheque drawn for $ 470 has been entered as a receipt. (d) A cheque for $180 has been returned by the bank but not written back in the cash book. The opening balance should have been carried down as $ 14,700. (f) The cheques paid to supplier for $2,140, $3,700 and $300 have not yet been presented to the bank. (g) The last pay-in-slip of the month showing deposit of$ 15,420 has not yet been credited by the bank. (h) The bank has debited a cheque for $720 by mistake to the company's account. You are required to : (i) Rewrite the Cash Book for the month, March 2015, and (ii) Prepare a statement reconciling the adjusted balance in the cash book with the balance as per the bank statement.

ILLUSTRATION 5. (When Cash Book is prepared first and then Bank Reconciliation Statement) Following is the Cash Book (Bank columns only) of M/s B.R.S. Limited for the month of March, 2015: $ 1,55,200 9,600 To Balance b/d 14,070. By Payments To Receipts 1,50,730 By Balance c/d 1,64,800 1,64,800 On scrutiny of the bank statements you find that: (a) The bank statement shows an overdrawn balance at $ 1,240. (b) Bank charges of 350 shown on the bank statement have not been entered in the cash book.© A cheque drawn for $ 470 has been entered as a receipt. (d) A cheque for $180 has been returned by the bank but not written back in the cash book. The opening balance should have been carried down as $ 14,700. (f) The cheques paid to supplier for $2,140, $3,700 and $300 have not yet been presented to the bank. (g) The last pay-in-slip of the month showing deposit of$ 15,420 has not yet been credited by the bank. (h) The bank has debited a cheque for $720 by mistake to the company's account. You are required to : (i) Rewrite the Cash Book for the month, March 2015, and (ii) Prepare a statement reconciling the adjusted balance in the cash book with the balance as per the bank statement.

College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter6: Bank Accounts, Cash Funds, And Internal Controls
Section: Chapter Questions
Problem 5DQ
See similar textbooks
icon
Related questions
Question
ILLUSTRATION 5. (When Cash Book is prepared first and then Bank Reconciliation Statement) Following is the Cash Book (Bank columns only) of M/s B.R.S. Limited for the month of March, 2015: 14,070. By Payments 1,50,730 By Balance c/d 1,55,200 9,600 To Balance b/d To Receipts 1,64,800 1,64,800 On scrutiny of the bank statements you find that: (a) The bank statement shows an overdrawn balance at $ 1,240. (b) Bank charges of 350 shown on the bank statement have not been entered in the cash book.© A cheque drawn for $ 470 has been entered as a receipt. (d) A cheque for $180 has been returned by the bank but not written back in the cash book. The opening balance should have been carried down as $ 14,700. (f) The cheques paid to supplier for $2,140, $3,700 and $300 have not yet been presented to the bank. (g) The last pay-in-slip of the month showing deposit of$ 15,420 has not yet been credited by the bank. (h) The bank has debited a cheque for $720 by mistake to the company's account. You are required to : (i) Rewrite the Cash Book for the month, March 2015, and (ii) Prepare a statement reconciling the adjusted balance in the cash book with the balance as per the bank statement.
Transcribed Image Text:ILLUSTRATION 5. (When Cash Book is prepared first and then Bank Reconciliation Statement) Following is the Cash Book (Bank columns only) of M/s B.R.S. Limited for the month of March, 2015: 14,070. By Payments 1,50,730 By Balance c/d 1,55,200 9,600 To Balance b/d To Receipts 1,64,800 1,64,800 On scrutiny of the bank statements you find that: (a) The bank statement shows an overdrawn balance at $ 1,240. (b) Bank charges of 350 shown on the bank statement have not been entered in the cash book.© A cheque drawn for $ 470 has been entered as a receipt. (d) A cheque for $180 has been returned by the bank but not written back in the cash book. The opening balance should have been carried down as $ 14,700. (f) The cheques paid to supplier for $2,140, $3,700 and $300 have not yet been presented to the bank. (g) The last pay-in-slip of the month showing deposit of$ 15,420 has not yet been credited by the bank. (h) The bank has debited a cheque for $720 by mistake to the company's account. You are required to : (i) Rewrite the Cash Book for the month, March 2015, and (ii) Prepare a statement reconciling the adjusted balance in the cash book with the balance as per the bank statement.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Bank reconciliation statement
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Century 21 Accounting Multicolumn Journal
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
SEE MORE TEXTBOOKS