Work Book Unit 12 (Unsolved)

Financial Accounting and Reporting (MGT 430)

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Unit 12

Workbook
BRS # 12.1: From the following particulars prepare a Bank Reconciliation Statement to find out the causes in two balances as on March 31st, 2010 for MOM (Pvt.) Ltd i) The bank overdraft as per cash book on March 31st, 2008 was Rs. 6,000. ii) Interest on overdraft for six months ending March 31st, 2008 Rs. 200 is debited in the Bank Statement. iii) Bank charges for the above period also debited in the Bank Statement amounted to Rs. 50. iv) Check issued, but not cashed, prior to 31.03.2008 amount to Rs. 1,500. v) Check paid into bank, but not cleared and credited before March 31st were for Rs. 2,500.

vi) Interest on investment collected by the bankers and credited in the Bank Statement amounted to Rs. 1,800.

Cash Book (Bank Column Missing)

Bank Statement (Missing)

MOM (Pvt.) Ltd.

Bank Reconciliation Statement
As on March 31st, 2010

Add:

Less:

Rs. 5,450

134

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Bank Reconciliation Statement (Unsolved)

Unit 12

Workbook
BRS # 12.2: From the following particulars prepare a Bank Reconciliation Statement to find out the causes of difference in two balances as on August 31st, 2009 for Four Star (Pvt.) Ltd. i) Bank Overdraft as per Bank Statement .. Rs. 17,000 Rs. 2,200 Rs. 2,300 Rs. 500 Rs. 3,400 Rs. 1,000 Rs. 1,200 Rs. 3,900

ii) Check issued but not encashed during the August ..... iii) Dividends on shares collected by banker .... iv) Interest charged by the bank recorded twice in the Cash Book . v) Check deposited as per Bank Statement not entered in Cash Book ..

vi) Credit side of the Bank column in Cash Book cast short ...... vii) Clubs dues paid by bank as per standing instruction not recorded in Cash Book ... viii) Uncredited check due to outstation .

Cash Book (Bank Column Missing)

Bank Statement (Missing)

Four Star (Pvt.) Ltd.

Bank Reconciliation Statement
As on August 31st, 2009

Add:

Less:

Rs. 19,300

135

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Bank Reconciliation Statement (Unsolved)

Unit 12

Workbook
BRS # 12.3: From the following particulars, you are required to find out the errors in cash book and bank statement by using missing method and prepare Bank Reconciliation Statement as on 31-12-2009, for Strong Stone Ltd i. Bank balance overdraft as per cash book .. 80,000 10,000 1,000

ii. Check recorded for collection but not sent to the bank .. iii. Credit side of the cash book cast short

iv. Premium on proprietors Life Insurance Policy (LIP) paid on standing order 5,000 v. Bank Charges recorded twice in the cash book 100

vi. Customers check returned by the bank as dishonoured 4,000 vii. Bill Receivable collected by the bank directly on the behalf of company .. 20,000

viii. Check received entered twice in the cash book 5,000 ix. Check issued but dishonoured on technical grounds . 3,000 x. A checks deposited by bank of worth Rs. 45,000 but Rs. 8,000 check was not collected by bank.

Cash Book

Bank Statement

Strong Stone Ltd

Bank Reconciliation Statement
As on December 31st , 2009

Add:

Less:

Rs. 89,900

136

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Bank Reconciliation Statement (Unsolved)

Unit 12

Workbook
BRS # 12.4: The Hussain and Co. as on December 31st, 2008 indicated the balance in Bank Statement of Rs. 200,556. Comparison of the bank statement with the company records revealed the following: I. Outstanding check totalled Rs. 90,907 II. Bank had collected from martin & Co. Rs. 30,450 which was not recorded in cash book III. A check drawn for Rs. 4,700 had incorrectly been charged by the Bank as Rs. 7,400. IV. Bank services charges for the month of December amounted to Rs. 221. V. A check for Rs. 10,720 issued to Shahrookh & Co. for purchase of Office Equipment was not encashed.

Hussain and Co.

Bank Reconciliation Statement
As on December, 2008

Add:

Less:

Rs. 66,000

Cash Book

Bank Statement

137

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Bank Reconciliation Statement (Unsolved)

Unit 12

Workbook
BRS # 12.5: A debit balance of Rs. 14,065 appeared in the cash book Adil & Co. as on March 31st, 2007 whereas the Bank Statement showed a credit balance of Rs. 27,380 as on that date. Following discrepancies were noted: a) Check amounting to Rs. 9,977 had been sent to suppliers and entered in the cash book during March, but had not yet been presented to the Bank. b) A check for Rs. 2,077 was issued by the company for purchase of merchandise and was paid by the bank but not recorded in companys book. c) Bank deposit of March 30, for Rs. 1,570 was not shown in Bank Statement.

d) Dividend collections amounting to Rs. 7,000 were credited by bank but these were not recorded in the cash book. e) Bank services charges for March amounting to Rs. 60 were debited by the bank but these were not recorded in the cash book. f) The bank debited Rs. 345 for insurance premium paid on March 28, on behalf of Adil & company, but it was recorded by company as Rs. 480. g) A check for Rs. 890 of Asif, a customer, which had been deposited in the bank incorrectly recorded in the cash book as Rs. 980.

Adil and Company

Bank Reconciliation Statement
As on March 31st, 2007

Add:

Less:

Rs. 27,380

Cash Book

Bank Statement

138

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Bank Reconciliation Statement (Unsolved)

Unit 12

Workbook
BRS # 12.6: On comparison of each book entries with those are in bank statement of Abdullah Traders on June 30th, 2008, the following differences were found: A. Unfavourable balance as per Bank Statement Rs. 55,000. B. Mark-up charged by bank Rs. 600. C. Check of Basher & Company for Rs. 3,500 was dishonoured and returned by bank. D. Dividend collected by bank not recorded in the cash book amounted to Rs. 2,000. E. Checks issued amounted to Rs. 10,000 but presented to bank for payment worth Rs. 5,800. F. A checks deposited by bank of worth Rs. 30,000 but Rs. 10,000 check was not collected by bank.

Abdullah Traders
Bank Reconciliation Statement
As on June 30th, 2008

Add:

Less:

Rs. 47,100

Cash Book

Bank Statement

139

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Bank Reconciliation Statement (Unsolved)

Unit 12

Workbook
BRS # 12.7: Prepare Bank Reconciliation Statement for the month of December, 2007 by missing method using T accounts (for cash book and for bank statement) and Reconciliation Statement. The cash book of M/S Universal Trading Company shows a balance of Rs. 102,568 with soneri bank Ltd. as of 31-12-2007. In January, 2008 the firm received a bank statement for the month of December, 2007 showing a credit balance of Rs. 118,068. Comparison of bank statement with the cash revealed the following anomalies. (i) (ii) (iii) Check issued totalling Rs. 115,250 recorded in cash book but not appeared in the bank statement. Check received form customers amounting to Rs. 75,850 deposited and properly accounted for in the cash book were not credited by bank. Check received from the following customers were returned unpaid by the bank (a) Check from Ghazi Autos received on 5-12-2007 for Rs. 1,200 (b) Check from Rahil Bros. received on 20-12-2007 for Rs. 18,500 (c) Check form Akmal Sons was received on 27-12-2007 for Rs. 2,000 The bank statement reveals the following entries which were not intimated to the firm earlier (a) Excise duty debited by bank Rs. 200 (b) Bank charges debited by bank Rs. 1,200 (c) Charged commission on collection of outstation check by bank of worth Rs. 800

(iv)

M/S Universal Trading Company

Bank Reconciliation Statement
As on December 31st , 2007

Add:

Less:

Rs. 118,068

Cash Book

Bank Statement

140

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Bank Reconciliation Statement (Unsolved)

Unit 12

Workbook
BRS # 12.8: From the following particulars, find out the errors in cash book and bank statement and prepare Bank Reconciliation Statement as on 31-05-2009 for Habib Sugar Mill Ltd i. Balance as per bank statement overdraft of Rs. 2,118

ii. The debit side of the cash book had been undercast by Rs. 300 iii. A check for Rs. 182 drawn for the payment of telephone bill had been entered in the cash book as Rs. 281 but was shown correctly in the bank statement iv. A check for Rs. 210 by the customer having been deposited into bank was dishonoured by the bank v. A check was credited twice in Cash Book for worth Rs. 3,000

vi. A Dividend of worth Rs. 90 had been collected by the bank but not recorded in the cash book vii. Checks Rs. 3,000 drawn in December but only 1,200 presented for payment viii. Interest amounting 228 had been debited by the bank but not entered in the cash book ix. A check for Rs. 2,077 was issued by the company for purchase of merchandise and was paid by the bank but not recorded in companys book. x. A check for Rs. 10,500 issued to Salman & Co. for purchase of Equipment was not encashed.

Habib Sugar Mill

Bank Reconciliation Statement
As on May 31st, 2009 Add:

Less:

Rs. 15,392 Cash Book Bank Statement

141

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Bank Reconciliation Statement (Unsolved)