Q6: The accountant of Fayyaz Co. has extracted the following data from his cash record & its bank statement on Nov.30, 2008: i. Bank overdraft as per cash book Rs.106,400 and as per bank statement Rs.10,000.

ii. Issued a cheque for Rs.50,000 to a supplier (after the expiry of Discount period), but it was wrongly entered in cash book as Rs.49,000

. iii. A debit Memo for Rs.5,000 accompanied the bank statement for locker rent; the bank had erroneously charged this to Fayyaz Co, instead of Fazzal Co.

iv. Deposited a customers cheque for Rs.78,400 (after discount deduction) but it was wrongly recorded in cash book as Rs.80,000. No consideration was given to discount.

v. A customers cheque for Rs.200,000 deposited directly in bank was by mistake entered into cash column of cash book.

vi. Issued a cheque for purchase of supplies for Rs.10,000 was recorded on companys record as Rs.1,000.

vii. Mark-up charged by bank was not recorded by the company; Rs.2,000.

viii. Three cheques totaling Rs.20,000 were issued to suppliers, but only one cheque for Rs.5,000 was presented to the bank by the last day of the month.

ix. Four cheques totaling Rs.120,000 were sent to the bank for collection but only one cheque for Rs.20,000 was cleared and credited by the bank.

Required: a. Prepare bank reconciliation statement for Nov. 30, 2008. b. Pass necessary adjusting entries