On 31st March, 2008, the Cash Book of Mr. David showed anOverdraft Balance of Rs

Question

On 31st March, 2008, the Cash Book of Mr. David showed anOverdraft Balance

of Rs. 19,000. This balance did not agree with the balance asper Pass Book. The

following discrepancies were noted on comparing Cash Book withPass Book.

1. Cheque for Rs. 5,000 paid into the bank for collection on20th March, 2008

has not yet been collected.

2. Cheques for Rs. 15,000 Issued on 24th March, 2008, out ofwhich cheques

for Rs. 10,000 presented during March, 2008.

3. An amount of Rs. 1,000 for interest on overdraft was debitedin the Pass

Book but was intimated to Mr. David on 4th April, 2008.

4. Mr. David paid into his bank account an amount of Rs. 3,000but it was

wrongly credited to Mr. Denial’s Account.

5. On 20th March, 2008 the bank received dividend of Rs. 10,000from a

company where Mr. David's has invested his money, the same hadbeen

recorded in Cash Book on 31st March, 2008.

6. Cheque of Rs. 2,500 was shown in Pass Book asdishonoured.

Explanation / Answer

1

2

3

4

6

Overdraft as per Cash book -19000

1

subtract cheques deposit but not appearing in pass book -5000

2

Add; cheques issued but not appearing 5000 in the pass book

3

Subtract Interest on bank overdraft not appearing in cash book -1000

4

Subtract cheques wrongly debited by bank in another account -3000

6

Subtract cheque dishonoured,appearing in the pass book -2500 Overdraft as per passbook -25500

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