If the balance at bank as per Cash Book is properly corrected, it will be 260, thus- Balance as already shown Add: Interest collected by Bank 2.760 6,000 8,760 Less: Payments made by bank: Premium Promissory Note Correction for wrong totalling Interest charged by bank Bank Charges 3,320 5,000 110 50 20 8,500 260 The Bank Reconciliation Statement will then appear as follows:- Balance as per Cash Book 260 Add: Cheques issued but not yet presented 2.500 2,760 Less: Cheques paid in but not yet credited 6.000 Overdraft as per Pass Book *Out of cheques worth 390,000 deposited, 384,000 worth have been cleared in the month of March itself, hence only 6.000 worth of cheques remain to be cleared. Illustration 9. The cash book of a firm showed an overdraft of 30,000 on 31st March, 2015. A comparison of the entries in the cash book and pass book revealed that 3,240 954 () On 22nd March, 2015, cheques totalling * 6,000 were sent to bankers for collection. Out of these, a cheque for 1,000 was wrongly recorded on the credit side of the cash book and a cheque amounting to 300 could not be collected by bank before 1st April, 2015. (ii) A cheque for 4,000 was issued to a supplier on 28th March, 2015. The cheque was presented to bank on 4th April, 2015, (iii) There were debits of 2,600 in the pass book for interest on overdraft and bank charges, but the same had not been recorded in the cash book. (iv) A cheque for* 1,000 was issued to a creditor on 27th March, 2015 but by mistake the same was not recorded in the cash book. The cheque was, however, duly encashed by 31st March, 2015. (v) As per standing instructions, the banker collected dividend of 500 on behalf of the firm and credited the same to its account by 31st March, 2015. The fact was, however, intimated to the firm on 3rd April, 2015. You are required to prepare a bank reconciliation statement as on 31st March, 2015. [Adapted C.S. (Intermediate) June, 1999)