Bank Reconciliation Statement

1. Bank Reconciliation Statement

2. Bank Reconciliation Statement • Bank reconciliation statement is a statement that Account holder (depositors) prepare to find, explain and understand any differences between the balance in bank statement and the balance in their accounting records.

3. Bank Reconciliation Statement • Causes of Difference • Cheques issues to suppliers not yet presented for payment. • Cheques deposited to the bank for collection. • Cheques received by the bank directly not yet intimated. • Insurance premium paid by the bank as per standing instructions not yet intimated. • Dividend received by the bank directly. • Bank charges not yet intimated. • Cheques dishonoured but not yet intimated.

4. Bank Reconciliation Statement as on……………

5. Q.No 1 From the following particulars, prepare a Bank Reconciliation Statement for Jindal Offset Ltd. • Balance as per Cash Book is Rs. 2,40,000. • Cheques issued but not presented in the bank amounts to Rs. 1,36,000. • Cheques deposited in bank but not yet cleared amounts to Rs. 90,000. • Bank charges amount to Rs.300. • Interest credited by bank amounts to Rs. 1,250. • The balance as per Pass Book if Rs.2,86,950

6. Q.No2 • From the following particulars of Mr. Vinod, prepare bank reconciliation statement as on March 31, 2010. 1. Bank balance as per cash book Rs. 50,000. 2. Cheques issued but not presented for payment Rs. 6,000. 3. The bank had directly collected dividend of Rs. 8,000 and credited to bank account but was not entered in the cash book. 4. Bank charges of Rs. 400 were not entered in the cash book. 5. A cheques for Rs. 6,000 was deposited but not collected by the bank.

7. Answer:

8. Q.No3 • From the following particulars of Anil & Co. prepare a bank reconciliation statement as on August 31, 2010. 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.

9. Answer

10. 4 5.

11. BRS – Method 2 (Pass Book Balance to Cash Book Balance) Q1 • On 31st March 2017, the Bank Pass Book of Namrata showed a balance of Rs.1,50,000 to her credit while balance as per cash book was Rs. 1,12,050. On scrutiny of the two books, she ascertained the following causes of difference: • She has issued cheques amounting to Rs. 80,000 out of which only Rs. 32,000 were presented for payment. • She received a cheque of Rs. 5,000 which she recorded in her cash book but forgot to deposit in the bank. • A cheque of Rs. 22,000 deposited by her has not been cleared yet. • Mr. Gupta deposited an amount of Rs. 15,700 in her bank which has not been recorded by her in Cash Book yet. • Bank has credit an interest of Rs. 1,500 while charging Rs.250 as bank charges. • Prepare Bank Reconciliation Statement.

12. BRS – Method 2 (Pass Book Balance to Cash Book Balance) Q1 ANS Bank Reconciliation Statement as on 31st March 2017

13. Method II: Pass Book Balance to Cash Book Balance Q2 • Prepare Bank Reconciliation statement as on December 31, 2009. On this day the passbook of Mr. Himanshu showed a balance of Rs. 7,000. (a) Cheques of Rs. 1,000 directly deposited by a customer. (b) The bank has credited Mr. Himanshu for Rs. 700 as interest. (c) Cheques for Rs. 3000 were issued during the month of December but of these cheques for Rs. 1,000 were not presented during the month of December. (d) Cheque deposited into bank but not cleared Rs.2500

14. Method II: Pass Book Balance to Cash Book Balance Q2 ANS Bank Reconciliation Statement as on 31st March 2009

15. Method II: Pass Book Balance to Cash Book Balance Q3 • Mrs.Jame’s pass book showed a balance of Rs 25,000 on June 30, 2003. Her cash book shows a different balance. On examination, it is found that 1. No record has been made in the cash book for a dishonour of a cheque for Rs.250 2. Cheques paid into bank amounting to Rs. 3,500 were paid into the bank on June 28, 2003 and the same had not been entered in the pass book. 3. Bank charges of Rs. 300 have not been entered in the cash book. 4. Cheques amounting to Rs. 9,000 issued to Ms.Devi has not been presented for payment still. 5. Mr. Balu who owed Rs. 3,000 has directly paid the sum into the bank account.

16. Method II: Pass Book Balance to Cash Book Balance Q3 ANS Bank Reconciliation Statement as on 30 June, 2003

17. Method II: Pass Book Balance to Cash Book Balance Q4 Prepare a bank reconciliation statement of Mr.Goutham from the following data as on 31.12.2003.

18. Method III: Overdraft Cash Book Balance to Overdraft Pass Book Balance Q1 Prepare a Bank Reconciliation Statement as at June 30, 2018 for M/s. JothiSales Private Limited from the information given below

19. Method III: Overdraft Cash Book Balance to Overdraft Pass Book Balance Q1 ANS

20. Method III: Overdraft Cash Book Balance to Overdraft Pass Book Balance Q2 From the following particulars, ascertain the balance that would appear in the Bank Pass Book of Cotton World Ltd. at 31st December, 2018.

21. Method III: Overdraft Cash Book Balance to Overdraft Pass Book Balance Q2 ANS Bank Reconciliation Statement as on 31st December, 2018

22. Method III: Overdraft Cash Book Balance to Overdraft Pass Book Balance Q3 • On 30th June 2014, the Cash Book of a trader shows a bank overdraft of Rs. 2,500. Following information's are available:- Prepare a Bank Reconciliation Statement.

23. Method III: Overdraft Cash Book Balance to Overdraft Pass Book Balance Q3 ANS Bank Reconciliation Statement as on 30th June, 2014

24. Method IV: Overdraft Pass Book Balance to Overdraft Cash Book Balance Q1 The Pass Book of M/s.EL Enterprises showed that he had an Overdraft of Rs.8,000 on 31st October, 2018. On verification of the Cash Book and the Bank Pass Book the following points were noticed:

25. Method IV: Overdraft Pass Book Balance to Overdraft Cash Book Balance Q1 ANS Bank Reconciliation Statement as on 31st October, 2018

26. Method IV: Overdraft Pass Book Balance to Overdraft Cash Book Balance Q2 My bank Pass Book showed an overdraft of Rs. 8,500 on 31st March, 2017. This does not agree with the Cash Book balance. From the following particulars ascertain the Cash Book balance:- • Cheques amounting to Rs. 15,000 were paid into bank in March, out of which, it appears, only cheques amounting to Rs. 4,500 were credited by bank. • Chequesissued during March amounted in all to Rs. 11,000. Out of these chequesfor Rs. 3,000 were unpaid on 31st March, 2017. • The Pass Book stands debited with Rs. 150 for interest and with Rs. 30 for bank charges. • The bank had paid the annual subscription of Rs. 100 to my club according to my instructions. • The entries for interest, bank charges and subscription have not yet been made in Cash Book.

27. Method IV: Overdraft Pass Book Balance to Overdraft Cash Book Balance Q2 ANS Bank Reconciliation Statement as on 31st March, 2017

28. Method IV: Overdraft Pass Book Balance to Overdraft Cash Book Balance Q3 • Prepare the Bank Reconciliation Statement from the following particulars for the period ending 31st December, 2012.(a) Overdraft as per Pass Book on 31-12-2012 Rs. 7,600.(b) Cheques deposited but not collected by the bank Rs. 3,560.(c) Incidental charges not recorded in Cash Book Rs. 80.(d) Cheques were issued for Rs. 7,800 but only Rs. 4,400 were presented for payment.(e) Insurance premium paid by bank not recorded in the Cash Book Rs. 4,200.(f) On 31st December, 2012 cash was deposited in bank Rs. 385 but the cashier debited the bank column with Rs. 485 by mistake.

29. Method IV: Overdraft Pass Book Balance to Overdraft Cash Book Balance Q3 ANS Bank Reconciliation Statement as on 31st December, 2012

30. Method IV: Overdraft Pass Book Balance to Overdraft Cash Book Balance Q4 • Prepare a Bank Reconciliation Statement from the following particulars:-On 31st December 2014, I had an overdraft of Rs. 750 as shown by my Pass Book. • I had issued cheques amounting to Rs. 250 of which Rs.200 worth only seem to have been presented for payment. • Chequesamounting to Rs.100 had been paid in by me on 30th December, but of these only Rs.75 were credited in the Pass Book. • I also find that a cheque for  Rs.10 which I had debited to bank account in my books has been omitted to be banked. • There is a debit of  Rs.25 in my Pass Book for interest.An entry of Rs.30 of a payment by a customer direct into the bank appears in the Pass Book. • My Pass Book also shows a credit of Rs.60 to my account for interest on investments directly collected by my bankers.

31. Method IV: Overdraft Pass Book Balance to Overdraft Cash Book Balance Q4 ANS Bank Reconciliation Statement as on 31st December, 2014