RS RS 5.000 1,500 500 Balance as per Cash Book Add: (a) Deposit made on 20.12.1998 but wrongly debited to Bank of India (b) Withdrawal made on 2.11.1998 wrongly entered in the above account instead of Bank of India (c) These entries have no effect in either account (d) Cheque issued on 29.12.1998 but not yet encashed with the Bank Less : (e) Incidental charges not yet credited by us Add: Interest credited by Bank but not yet debited by us in our books Less : (g) Cheque deposited but the proceeds of the same not yet credited of Bank 10.000 10 50 5.000 5,010 17.050 12.040 Balance as per Bank Pass Book (favourable) 140 j40 RECONCILIATION STATEMENT WITH BANK OF INDIA (as on 31st December 1998) Particulars Rs. Rs. 2.250 1.500 500 Overdraft as per Cash Book Less : (a) Deposit made into Dena Bank on 20.12.1998 but wrongly debited to the above account (b) Withdrawal made on 21.1.1998, but wrongly entered in Dena Bank Account (c) These entries have no effect in either Account Add: (d) Cheque issued on 29.12.1998 but not yet encashed with the Bank Less: (e) Incidental charges not yet credited by us Interest charged by Bank but not yet recorded by us in the Books (8) Cheques deposited, but the proceeds of the same not yet credited by Bank 1.000 25 275 3.500 8.050 7.050 1.000 Overdraft as per Bank Pass Book Where Cash Book Balance has to be Adjusted Illustration 5.4. The Cash Book of Mr Gadbadwala shows Rs 8,364 as the balance at the Bank as on 31st December, 2000 but you find that this does not agree with the balance as per the Bank Pass Book. On scrutiny, you find the following discrepancies: (1) On 15th December, 2000, the payments side of the Cash Book was undercast by Rs 100. (ID) A cheque for Rs 131 issued on 25th December, 2000 was taken in the Cash column. (iii) A deposit of Rs 150 was recorded in the Cash Book as if there was no Bank Column therein. (iv) On 18th December, 2000 the debit balance of Rs 1,526 as on the previous day, was brought forward as credit balance, (1) of the total cheques amounting to Rs 11,514 drawn in the last week of December, 2000, cheques aggregating Rs 7.815 were encashed in December (vi) Dividends of Rs 250 collected by the Bank and subscription of Rs 100 paid by it were not recorded in the Cash Book, (vii) One out-going cheque of Rs 350 was recorded twice in the Cash Book. Prepare a Reconciliation Statement when: (a) the books are not to be closed on 31st December (b) the books are to be closed on 31st December