On 31st March, 2023 the Cash Book of Gopal disclosed a balance of ₹ 12,580. On checking entries in the Cash Book with the bank statement, it was ascertained that:

On 31st March, 2023 the Cash Book of Gopal disclosed a balance of ₹ 12,580. On checking entries in the Cash Book with the bank statement, it was ascertained that:

(i) Cheques amounting to ₹ 18,000 were drawn on 25th March, of which cheques of ₹ 4,800 were cashed before 31st March.

(ii) Cheques for ₹ 18,000 were sent for collection out of which cheques fro ₹ 8,200 were credited by bank after 31st March.

(iii) An amount of ₹ 5,000 paid directly into the merchant’s account by a customer was not entered in the Cash Book.

(iv) On 31st March, cash was deposited into the bank ₹ 12,720 but the cashier debited the bank account with ₹ 12,270 by mistake.

(v) Dividend collected by bank on our behalf ₹ 570 does not appear in the Cash Book.

(vi) ₹ 300 is entered in the bank statement as bank charges. This was recorded as ₹ 200 in the cash book.

You are required:

(i) to prepare the Amended Cash Book, and

(ii) then prepare a Bank Reconciliation Statement.

[Ans. (i) Amended balance as per Cash Book ₹ 18,500; (ii) Bank balance as per Pass Book ₹ 23,500.]