According to the
cash-book of Gopi, there was a balance of Rs.44,50,000 in his bank on 30th
June, 2017.
On investigation you
find that :
(i) Cheques amounting
to Rs.6,00,000 issued to creditors have not been presented for payment till the
date.
(ii) Cheques paid into
bank amounting to Rs.11,05,000 out of which cheques amounting to Rs.5,50,000 only
collected by the bank up to 30th June 2017.
(iii) A dividend of Rs.40,000 and rent amounting to Rs.6,00,000 received by the bank and entered in
the pass-book but not recorded in the cash book.
(iv) Insurance
premium (up to 31st December, 2017) paid by the bank Rs.27,000 not entered in
the cash book.
(v) The payment side
of the cash book had been under casted by Rs.5,000.
(vi) Bank charges Rs.1,500
shown in the pass book had not been entered in the cash book.
(vii) A bill payable
of Rs.2,00,000 had been paid by the bank but was not entered in the cash book
and bill receivable for Rs.60,000 had been discounted with the bank at a cost
of Rs.1,000 which had also not been recorded in cash book.
Required:
(a) to make the
appropriate adjustments in the cash book, and
(b) to prepare a
statement reconciling it with the bank pass book.
