On 31st March, 2023 the Cash Book of Babu showed on overdraft of ₹ 18,000 with the Bank of India. This balance did not match with the balance as shown by the Bank Pass Book. It was noticed that Babu had deposited in the bank on 29th March 2023, four cheques for ₹ 10,000; ₹ 12,000; ₹ 6,000 and ₹ 8,000. Of these the cheque for ₹ 6,000 was credited by the bank on 3rd April, 2023. Babu had issued on 24th March 2023 three cheques for ₹ 15,000; ₹ 12,000 and ₹ 7,000. The first two cheques were presented to the bank for payment in March, 2023 and the third cheque in April, 2023.

Also, on 31st March, 2023, the bank had debited Babu’s Account by ₹ 500 for interest and ₹ 20 as charges, which were not recorded in his books.

You are required to prepare Bank Reconciliation Statement as on 31st March, 2023.

Anurag Pathak Changed status to publish October 24, 2023