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Overdraft as Per Pass Book BRS

Arjun EP

Published on: June 25, 2020

When overdraft as per pass book or debit balance as per cash book is given

It is the fourth step of solution related to bank reconciliation statement problems and solution.

Overdraft as per pass book and debit balance as per pass book is same.

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු =

PROBLEM: 6

SVS Traders has following information for the month of May:

a. Overdraft as per pass book Rs 25,000

b. Cheques were issued of Rs 75,000 but upto March, amounting Rs 63,000 were presented for payment.

c. Dishonoured cheque of Rs 8,000 was debited in pass book only.

d. Cheques were deposited into bank of Rs 95,000 but only collected by bank Rs 42,000.

e. Bank charged interest on overdraft Rs 375.

f. Bank has collected interest on investment Rs 7,200.

Required: Bank reconciliation statement

[Answer: Balance as per cash book = 17,175]

SOLUTION:

Bank Reconciliation Statement

For the month of May

Particulars		Amount	Amount
Overdraft as per pass book			(25,000)
Add:	Cheque deposited into bank but not yet cleared (95,000 – 42,000) Dishonoured cheque debited in pass book only. Interest on overdraft charged by bank	53,000 8,000 375	61,375
			36375
Less:	Cheque issued but not presented for payment (75,000 – 63,000) Interest collected by bank	12,000 7,200	(19,200)
Balance as per cash book			17,175

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PROBLEM: 7

The following extracted information is given by AB Traders on 31^st December 2019:

a. Overdraft as per pass book Rs 120,000.

b. Cheques were issued for Rs 70,000 of which cheque of Rs 30,000 only cashed upto 31^st December.

c. Cheques amounting to Rs 35,000 were paid in to the bank for collection but of these only Rs 5,000 was credited in the pass book.

d. The bank has charged Rs 1,600 as interest on overdraft; this information was received on 2^nd January 2014.

e. There was a credit of Rs 10,000 in the pass book representing Rs 4,000 paid by a debtor direct in to bank and Rs 6,000 collected by bank in respect of interest on investment.

f. A cheque for Rs 2,000 had been debited in bank column of cash book but was not sent to the bank at all.

Required: Bank reconciliation statement

[Answer: Balance as per cash book = Rs 36,400]

SOLUTION:

Bank Reconciliation Statement

For the month of December

Particulars		Amount	Amount
Overdraft as per pass book			(120,000)
Add:	Cheque deposited into bank but not yet cleared (35,000 – 5,000) Interest on overdraft charged by bank Cheque debited in cash book but not sent for collection	30,000 1,600 2,000	33,600
			86,400
Less:	Cheque issued but not presented for payment (70,000 – 30,000) Amount deposited by customer direct into bank Interest on invest collected by bank	40,000 4,000 6,000	(50,000)
Balance as per cash book			36,400