The Cash Book of a merchant showed as overdraft balance of ₹15,700 on 31t December
Channel: Doubtnut
Date: 2020-05-03

The Cash Book of a merchant showed as overdraft balance of ₹15,700 on 31t December 2018. On comparing in with the Pass Book, the following differences were noted :  (i) Cheques amounting to ₹12,250 were deposited into the bank, out of which cheques for ₹8,200 have been credited in the Pass Book 2nd January, 2019.  (ii) Cheques were issued amounting to ₹8,300 of which cheques for ₹2,000 have been cashes upto 31, Dec.  (iii) A cheque of ₹4,250 issued to a creditor, has been entered in the Cash Book as ₹4,520.  (iv) Bank charges of ₹180 on 30th November 2018 and ₹240 on 31th December 2018 have not been entered in teh Cash Book.  (v) A B/R for ₹6,000 discounted with the bank is entered in the Cash Book without recording the discount charges of ₹300.  (vi) A cheque for ₹2,000 deposited into the bank appear in the Pass Book.   (vii) A cheque for ₹3,700 deposited into the bank appear in the Pass Book, was recorded in the cash column of the Cash Book.  You are required :  (i) to make appropriate adjustments in the cash Book, bringing down the correct balance, and   (ii) to prepare a bank reconciliation statement with the adjusted balance. \