The document provides an example of a bank reconciliation statement and explanations of the process. It lists various reconciling items that may exist between a cash book and pass book balance such as cheques issued or deposited that have not cleared. It also includes two illustrations of reconciling a cash book to a pass book.
The document provides an example of a bank reconciliation statement and explanations of the process. It lists various reconciling items that may exist between a cash book and pass book balance such as cheques issued or deposited that have not cleared. It also includes two illustrations of reconciling a cash book to a pass book.
The document provides an example of a bank reconciliation statement and explanations of the process. It lists various reconciling items that may exist between a cash book and pass book balance such as cheques issued or deposited that have not cleared. It also includes two illustrations of reconciling a cash book to a pass book.
The document provides an example of a bank reconciliation statement and explanations of the process. It lists various reconciling items that may exist between a cash book and pass book balance such as cheques issued or deposited that have not cleared. It also includes two illustrations of reconciling a cash book to a pass book.
4 Financial Accounting 4. Whenall the diferences are adjusted, the balance must be the per the other book. If cash book balance was the starting balance h balance as final balance must be the balance as per the pass book and vice versa Proforma ofa bank reconciliation statement The following statements indicate the effect of each difference' on cask book balance or pass book balance. L Ifwe take cash book balance or overdraft as per pass book as the starting point: Bank Reconciliation Statement as on .... Rs. Rs. Balance as per cash book or overdraft as per pass book Add: ) Cheques issued / drawn but not presented XX () Direct deposit made by customers into bank X0X not recorded in cash book (üi) Dividend or other incomes collected by the bank not recorded in cash book (iv) Interest credited by the bank but not debited in cash book
Less: 0) Cheques paid/ deposited into bank but not
credited (i) Payments by the bank as per not entered in cash book standing instruction, (iü) Bank charges debited in pass book but not recorded in cash book (iv) Cheques deposited but dishonoured, not recorded in cash book (v) Cheques issued and recorded in cash book as deposited into bank but the same was not deposited into bank (vi) Cheques issued but not (vii) Interest on recorded in cash book bank deposits recorded in cash but not credited by book the bank 2000
Balance as per pass book or
as per cash book. overdraft X006 RnkReconciliationStatement 65 II.Ifwetake pass book balance or overdraft as per cash book as starting point: Rank Reconciliation Statement as on .... Rs. Balance as per pass book or overdraft as per cash book Jdd: () Cheques paid / deposited into bank but not credited () Payments made by the bank as per standing instruction, not entered in cash book (i0) Bank charges debited in pass book but not recorded in cash book (iv) Cheques deposited but dishonoured not recorded in cash book (v) Cheques issued and recorded in cash book as deposited into the bank but the same was not deposited into the bank XX
(vi) Cheques issued but not recorded in cash book
(vi) Interest on bank deposits recorded in cash book but not credited, by the bank
Less: () Cheques issued/ drawn but not presented
bank, () Direct deposit made by customers into book not recorded in cash by the bank () Dividends or other income collected XX cash book but not recorded in bank but not debited in (iv) Interest credited by the cash book
overdraft Balance as per cash book or book as per pass BankReconciliation Statement 6.7
ILLUSTRATIONS PBA ) L. Reconciliation from favourable cash book balance llustration l From the under-mentioned particulars of Mr. M. Mohan prepare a Bank Reconciliation Statement as on 31 st July 1994. (6) Cheques paid into Bank on the 28th July 1994 but credited to Mohan's account in the first week of August 1994. K. Kalyan Rs. 1,000; J. Joy Rs. 800; R. Raghul Rs. 1,200. () The following cheques were issued by Mohan on 30th July 1994 but presented to bank for payment after the close of the year. D. David Rs. 1,200; H. Hari Rs. 1,000; L. Lal Rs. 800. (iü) Acheque for Rs. 300 was credited direct to the account and was not passed through the cash book. (iv) The bank balance as per cash book on 31st July 1994 amounted to Rs. 30,000. [C.U. B.Com] Solution: Bank Reconciliation Statement of M. Mohan as on 31st July 1994 Rs. Rs. Bank Balance as per cash book 30,000 Add: i) Cheques issued but not presented for payment D. David Rs. 1,200 H. Hari Rs. 1,000 L. Lal Rs. 800 3,000 (ii) Cheque credited direct to the account but not passed through the cash book 300 3,300 33,300 Less: Cheques paid into bank but not credited in the pass book K. Kalyan Rs. 1,000 J. Joy Rs. 800 R. Raghul Rs. 1,200 3,000 3,000 Bank balance as per pass book 30,300 II. Reconciliation from favourable pass book Illustration 2 balance From the following particulars, 31st December 1992 to find out theDrepare a bank reconciliation statement as at balance as per cash book of Ms. Akila. 0) The following cheques were paid into bank in December 1992 but were credited by the bank in January 1993. Maninder-Rs. 1,400; Kalyani-Rs. 1,600: Rajesh- Rs. 1,200. ) ) The following cheques were issued in December 1992 but presented for payment in January 1993. were 6.8 Financial Accounting Shalini -Rs. 1,000; Bhagat Rs. 900 (iü) The following charges were made by the bank which were not recorded in the cash book. Incidental charges for the half year ended 31-12-1992 Rs. 40 Collection charges for outstanding cheques Rs. 30 (iv) The following payments made by the bank direct as per standing instructions were not entered in the cash book. Insurance premium - Rs. 700; Subscription for commerce - Rs. I50 A cheque for Rs. 1,000 which was received from a customer was entered in the bank column of cash book in December 1992 but was omitted to be banked in December 1992. (vi) A bill for Rs.2,000 was retired by the bank under rebate of Rs. 40 but the full amount of the bill was credited in bank column of the cash book. The bank balance as per pass book was Rs. 31,600 on 3 1st December 1992. Solution: Books of Ms. Akila
Bank Reconciliation Statement as on 31-12-1992
Rs. Rs. Balance as per pass book 31,600 Add: (i) Cheques paid into bank but not yet cleared and credited: Maninder 1,400 Kalyani 1,600 Rajesh 1,200 4,200 (ii) Charges recorded in the pass book but not in the cash book: Incidental charges 40 Collection charges 30 70 (iii)Payment made by the bank directly as per standing instructions, not recorded in the cash book: Insurance Premium 700 Subscription for commerce 150 850 (iv) Cheques entered in the cash book but omitted to be banked 1,000 6,120 37,720 Less: Cheques issued but not yet presented for payment Shalini 1,000 Bhagat 900 1,900 Rebate allowed for the billretired but not entered in the cash book 40 1,940
Balance as per cash book 35,780
Bank Reconciliation Statement 6.9 IIL Reconciliation from Overdrawn cash book balance Ilustration 3 The bank overdraft of Rajini on 31-12-93 as per cash book is Rs. 9,000. From the following particulars, prepare bank reconciliation statement: Rs. ) Unpresented cheque 3,000 () Uncleared cheque C4) 1,700 (iü) Bank interest debited in the pass book only ts 500 Bill collected and credited in the pass book only (-) 800 (v) Cheque of Renu dishonoured s 500 (vi) Cheques issued to Sekar entered in the Cash column of cash book 300 Solution: Bank Reconciliation Statement as on 31-12-93 Rs. Rs. Bank Overdraft as per cash book 9,000 Add: (i) Uncleared cheques 1,700 (ii) Interest debited 500 (iüi) Dishonoured cheques 500 (iv) Cheques omitted from the Bank column 300 3,000 12,000 Less: (i) Un presented cheques 3,000 (ii) Bill Collected 800 3,800 Bank Overdraft as per pass book 8,200
IV. Reconciliation from overdrawn pass book balance
Illustration 4 Prepare a bank reconciliation statement from the following data as on 30-11-1994: ) Balance as per pass book as on 30-11-1994 overdrawn Rs. 18,408. () Cheques drawn on 30-1 1-1994 but not cashed till IDec.1994 Rs 6,450; Rs 1,490; Rs. 1,852. (iü) Bank overdraft interest charged on 28-11-1994 not entered in cash book Rs. 3,220. (iv) Cheques received on 29-l|-94 entered in cash book, but not deposited into bank till 31-12-94 Rs. 22,644 and Rs. 3,460. () Cheque received amounting to Rs. 70 entered in the cash book twice. (vi) Billsreceivable due on 29-1 | -94 was sent to bank for collection on 28-11-94 and was entered in cash book forthwith but the proceeds were not credited in bank pass book till 3rd Dec. 1994 Rs.5,960. (vii) Aperiodic payment by bank for Rs. 160 under standinginstruction not entered in cash book. (vii) Cheque deposited on 30th Nov. 1994 dishonoured but the entry thereof was not made in the cash book Rs. 3,780. 6.10 Financial Accounting Solution: In the books of..... Bank Reconciliation Statement as on 30th Nov. 1994 Rs. RS. Overdraft Balance as per pass book 18,408 Add: Cheques drawn but not cashed (Rs. 6,450 + Rs. 1,490 + Rs. 1,852) 9,792 9,792 28,200 Less: () Interest on bank overdraft not entered in cash book 3,220 (i) Cheque received and entered in the cash book as deposited into bank but actually not deposited till 3rd Dec. 1994 (Rs. 22,644 + Rs. 3,460) 26,104 (ii) Cheque received and entered in th cash book twice 70
(iv) Billsent to bank for collection but not
credited till 3rd Dec. 1994 5,960 () Periodic payment made by bank not entered in cash book 160 (vi) Cheque deposited dishonoured but not entered in cash book 3,780 39,294 Bank Balance as per cash book (Dr.) 11,094 V When both, pass book and cash book ofa period are given
