Livestock Economics, Marketing and Business Management

Problem to solve

PROBLEM

• The Passbook of a trader showed a bank balance of Rs.85400 to his credit.
• On comparing the Passbook entries with those in the Cash Book, the following facts were noticed:
  • Out of cheque worth Rs.12000 paid into bank for collection, only Rs.8000 has been collected during the same financial Period.
  • Out of cheques worth Rs.6250 issued during the period, cheques worth Rs.5000 had not been presented for payment.
  • There were entries only in the Passbook for Rs.150, bank charges and Rs.1200 interest on investment collected by bank.
  • There was a wrong debit for Rs.5250 in the Passbook in respect of a cheque drawn by some other party.
• Prepare a Bank Reconciliation Statement as on that date and derive the Bank Balance as per the Cash Book.