Question
The Bank column of the cash book showed an overdraft of $5,000 on 31.3.2022, Whereas per Bank Statement the overdraft is $4,200. The following differences
The Bank column of the cash book showed an overdraft of $5,000 on 31.3.2022, Whereas per Bank Statement the overdraft is $4,200. The following differences were noticed between the two records: 1. Cheque of $2,400 issued but not encashed by customers. 2. Cheque deposited but not cleared $1,200. 3. Collection charges debited by bank not recorded in Cash book $100. 4. Bank interest charges by the bank not recorded in Cash book $300. 5. Cheque dishonored debuted by bank not in Cash book $400. 6. Interest directly received by bank not entered in Cash book $400. Prepare Bank Reconciliation statement after amending the Cash Book. Required: a. Calculate the Balance carried down for Cash book. b. Total of cash book. c. Bank Overdraft as per passbook
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