The Cash Book of a merchant showed as overdraft balance of ₹15,700 on 31t December 2018. On comparing in with the Pass Book, the following differences were noted :
(i) Cheques amounting to ₹12,250 were deposited into the bank, out of which cheques for ₹8,200 have been credited in the Pass Book 2nd January, 2019.
(ii) Cheques were issued amounting to ₹8,300 of which cheques for ₹2,000 have been cashes upto 31, Dec.
(iii) A cheque of ₹4,250 issued to a creditor, has been entered in the Cash Book as ₹4,520.
(iv) Bank charges of ₹180 on 30th November 2018 and ₹240 on 31th December 2018 have not been entered in teh Cash Book.
(v) A B/R for ₹6,000 discounted with the bank is entered in the Cash Book without recording the discount charges of ₹300.
(vi) A cheque for ₹2,000 deposited into the bank appear in the Pass Book.
(vii) A cheque for ₹3,700 deposited into the bank appear in the Pass Book, was recorded in the cash column of the Cash Book.
You are required :
(i) to make appropriate adjustments in the cash Book, bringing down the correct balance, and
(ii) to prepare a bank reconciliation statement with the adjusted balance. \