Question

Prepare Bank Reconciliation Statement from the following information:

Cash at bank as shown by the Cash Book ₹ 75,000. Cheques drawn but not yet presented:
S. Sahai ₹ 2,000
Man Mohan ₹ 3,000

Cheques paid into the bank but not yet credited, ₹ 1,900. Bank charges not yet entered in
the Cash Book, ₹ 100.

Illustration 1

From the following particulars of Mr. Vinod, prepare bank reconciliation statement as on
March 31, 2014.
1. Bank balance as per cash book Rs. 50,000.
2. Cheques issued but not presented for payment Rs. 6,000.
Solution

Bank Reconciliation Statement of Mr. Vinod as on March

31, 2014
Particulars + –
Rs. Rs.

1. Balance as per cash book 50,000

2. Cheques issued but not presented for payment 6,000
3. Dividends collected by the bank 8,000
4. Cheque deposited but not credited by the bank 6,000
5. Bank charges debited by the bank 400
6. Balance as per passbook. 57,600

64,000 64,000

Illustration 2

From the following particulars of Anil & Co. prepare a bank reconciliation statement as
on August 31, 2014.
1. Balance as per the cash book Rs. 54,000.
2. Rs. 100 bank incidental charges debited to Anil & Co. account, which is not recorded
in cash book.
3. Cheques for Rs. 5,400 is deposited in the bank but not yet collected by the bank.
4. A cheque for Rs. 20,000 is issued by Anil & Co. not presented for payment.

Solution

Bank Reconciliation Statement of Anil & Co. as on August 31,

2014
Particulars (+) (–)
Amount Amount
Rs. Rs.
1. Balance as per cash book 54,000 -
2. Cheqeus issued but not presented for payment 20,000 -
3. Cheques deposited but not credited by the bank - 5,400
4. Bank incidental charges debited by the bank - 100
5. Balance as per passbook - 68,500
74,000 74,000
Bank Reconciliation Statement 159

Illustration 3

The bank passbook of M/s. Boss & Co. showed a balance of Rs. 45,000 on May 31, 2014.
1. Cheques issued before May 31, 2014, amounting to Rs. 25,940 had not been presented
for encashment.
2. Two cheques of Rs. 3,900 and Rs. 2,350 were deposited into the bank on May 31 but
the bank gave credit for the same in June, 2014.
3. There was also a debit in the passbook of Rs. 2,500 in respect of a cheque dishonoured
on 31.5.2014. Prepare a bank reconciliation statement as on
May 31, 2014.
Solution

Bank Reconciliation Statement of Bose & Co as on May 31, 2014

Particulars (+) (–)

Amount Amount
Rs. Rs.
1. Balance as per passbook 45,000
2. Cheques deposited but not collected by the bank 6,250
(Rs. 3,900+ Rs. 2,350)
3. Cheque dishonoured recorded only in passbook 2,500
4. Cheques issued but not presented for payment 25,940
5. Balance as per cash book 27,810
53,750 53,750

Illustration 4

On March 31, 2014, Rakesh had on overdraft of Rs. 8,000 as shown by his cash book.
Cheques amounting to Rs. 2,000 had been paid in by him but were not collected by the
bank. He issued cheques of Rs. 800 which were not presented to the bank for payment.
Ther e was a debit in his passbook of Rs. 60 for interest and Rs. 100 for bank charges.
Prepare bank reconciliation statement.
 160 Accountancy

Solution

Bank Reconciliation Statement of Rakesh as on April 01,

2014

Particulars (+) (–)

Amount Amount
Rs. Rs.
1. Overdraft as per cash book 8,000
2. Cheques deposited but not yet collectedcharged by the bank 2,000
3. Bank charges 60
4. Cheques issued but not presented for payment 800 100
5. Balance as per bank passbook (overdraft) 9,360
10,160 10,160
Illustration 5

On March 31, 2014 the bank column of the cash book of Agrawal Traders showed a credit
balance of Rs. 1,18,100 (Overdraft). On examining of the cash book and the bank statement,
it was found that :
1. Cheques received and recorded in the cash book but not sent to the bank of collection
Rs. 12,400.
2. Payment received from a customer directly by the bank Rs. 27,300 but no entry
was made in the cash book.
3. Cheques issued for Rs. 1,75,200 not presented for payment.
Inter est of Rs. 8,800 charged by the bank was not entered in the cash book. Prepare
bank reconciliation statement.
Solution

Bank Reconciliation Statement of Agarwal Traders as on March 31, 2014

Particulars (+) (–)
Amount Amount
Rs. Rs.
1. Overdraft as per cash book 1,18,100
2. Cheques received and recorded in the cash book but not 12,400
sent to the bank for collection
3. Interest on bank overdraft debited by the bank but not 8,800
entered in the cash book
4. Payment received from the customer directly 27,300
5. Credited in the bank a/c but not entered in the cash book 1,75,200
6. Cheques issued but not presented for payment
7. Balance as per the passbook (favourable balance) 63,200
2,02,500 2,02,500
Bank Reconciliation Statement 161

Illustration 6

From the following particulars of Asha & Co. prepare a bank reconciliation statement on
December 31, 2014.
Rs.
Overdraft as per passbook 20,000
Interest on overdraft 2,000
Insurance Premium paid by the bank 200
Cheque issued but not presented for payment 6,500
Cheque deposited but not yet cleared 6,000
Wrongly debited by the bank 500

Solution

Bank Reconciliation Statement of Asha & Co as on December 31, 2014

Particulars (+) (–)

Amount Amount
Rs. Rs.
1. Overdraft as per passbook 20,000
2. Interest on overdraft 2,000
3. Insurance premium paid by the bank 200
4. Cheque issued but not presented for payment 6,500
5. Cheques deposited but not yet cleared 6,000
6. Wrongly debited by the bank 500
7. Balance as per the cash book (overdraft) 17,800
26,500 26,500
Illustration 7

From the following particulars, prepare a bank reconciliation statement as on

March 31, 2014.

(a) Debit balance as per cash book is Rs. 10,000.

(b) A cheque for Rs. 1,000 deposited but not recorded in the cash book.
(c) A cash deposit of Rs. 200 was recorded in the cash book as if there is not bank,
column therein.
(d) A cheque issued for Rs. 250 was recorded as Rs. 205 in the cash column.
(e) The debit balance of Rs. 1,500 as on the previous day was brought forward as a
credit balance.
(f) The payment side of the cash book was under cast by Rs. 100.
(g) A cash discount allowed of Rs. 112 was recorded as Rs. 121 in the bank column.
(h) A cheque of Rs. 500 received from a debtor was recorded in the cash book but not
deposited in the bank for collection.
(i) One outgoing cheque of Rs. 300 was recorded twice in the cash book.
 162 Accountancy

Solution

Bank Reconciliation statement as on September 30, 2014

Particulars (+) (–)
Amount Amount
Rs. Rs.
1. Debit balance as per cash book 10,000
2. Error in carrying forward 3,000
3. Cheque recorded twice in cash book 300
4. Cheque deposit not record in bank column 200
5. Cheque deposit but not recorded 1,000
6, Under casting of payment side 100
7. Cheque issued but not entered 250
8. A cash discount wrongly recorded in bank column 121
9. Cheque recorded but not deposited 500
10. Credit balance as per passbook 13,529
14,500 14,500

Illustration 8

From the following particulars, prepare the bank reconciliation statement of Shri Krishan
as on March 31, 2014.
(a) Balance as per passbook is Rs. 10,000.
(b) Bank collected a cheque of Rs. 500 on behalf of Shri Krishan but wrongly credited
it to Shri Krishan’s account.
(c) Bank recorded a cash book deposit of Rs. 1,589 as Rs. 1,598.
(d) Withdrawal column of the passbook under cast by Rs. 100.
(e) The credit balance of Rs. 1,500 as on the pass-book was recorded in the debit
balance.
(f) The payment of a cheque of Rs. 350 was recorded twice in the passbook.
(g) The pass-book showed a credit balance for a cheque of Rs. 1,000 deposited by Shri
Kishan.
Solution

Bank Reconciliation Statement as on March 31, 2014 (+)

Particulars (–)
Amount Amount
Rs. Rs.
1. Credit balance as per passbook 10,000
2. Cheque wrongly credited to another customer account 500
3. Error in carrying forward 3,000
4. Cheque recorded twice 350
5. Excess credit for cash deposit 9
6. Under casting of withdrawal column 100
7. Wrong credit 1,000
8. Debit balance as per cash book 12,741
13,850 13,850