Firm’s account

The Pass Book of Bank Account No. 1 of Ghose and Co. Calcutta shows an overdraft of ~ 17,950 on July 31, 2015, but this does not agree with the bank balance as shown by the Cash Book of the firm. On scrutiny, the following discrepancies are revealed:

(i) Out of cheques amounting to ~ 4,350 drawn by the firm on July 27, cheques amounting to ~ 2,650 only are cashed up to July 31

(ii) The firm paid ~ 7,000 into the bank, but the bank credited the same to Account No. 2 in the name of the firm

(Iii) Interest and bank charges amounting to ~ 1,200 debited by the bank to the Firm’s account have not been entered in the firm’s books

(iv) Out of ~ 11,300 paid in by the firm in cash and by cheques on July 31, cheques amounting to ~ 4,750 are credited to the firm’s account on August 4, 2015.

(v) A cheque of ~ 900 credited in the Pass Book on July 28 being dishonoured is debited to the firm’s account on August 2

(vi) Bankers have credited the firm’s account with ~ 16,000 for interest collected by them on Government papers held by them but the same has not been entered in the firm’s books.

(vii) A payment of ~ 250 from Account No. 2 has been wrongly debited by the bankers to Account No. 1. Prepare the Bank Reconciliation Statement as at 31st July, 2015 for Bank Account No. 1.