Bank Reconciliation Statement

Q.1. The balance of cash at bank as shown by the Cash Book Vivek & Co, New
Delhi as on 31st December 2009 was Rs.7500. The balance as per Bank Pass Book
is Rs.9015/-. The following entries required to be reconciled:
i. Cheques Rs. 500 and 700 respectively deposited on 30 th December
were not credited until 2nd January 2010.
ii. Cheques Rs. 600, 800, 1200 ( total 2600) issued on 28 th December
were not presented until 5th of January 2010
iii. There was a credit of 125 in the pass book in respect of interest
under dated 31st December which was not entered in cash book
iv. There was bank charges debited in the pass book amounting Rs.10
which were not entered in cash book.
Prepare Bank Reconciliation Statement

Solution: 1
Bank Reconciliation Statement as on 31st December 2009

Bank Balance as per Cash Book: 7500

Add
Cheques issued on 28th Dec. not encashed (ii )
but not presented in bank 2600
Interest credited by bank, but not entered
In cash book (iii) 125 2725
---------
10225
Less
Cheques deposited but not credited(ii) 1200
Bank charges debited by bank not entered in
Cash book 10 1210
---------
Bank Balance as per pass book 9015
=======
Q. 2. The Bank column of a Cash Book showed a debit balance of 49,000 on
June 30th 2010. Entries in the Cash Book and the Pass book were compared and
the following differences were noticed.
1. Cheques of Shyam 9,000 and Mohan 15,000 were deposited but
were not collected upto 30th June 2010
2. Ramesh, a Debtor, deposited a cheque 8,000 directly into the bank
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 3. Bank allowed an interest of 500
4. Cheque for 10,000 issued to Radhey Shyam was not presented for
payment
5. Bank debited the account by 6,000 being insurance premium
6. Bank debited the account by 100 being bank charges
Prepare Bank Statement as on 30th June 2010 (Grewal 12.11)

Answer : 2

Particulars Amount Amount

Cash Book Balance(Dr) 49,000

Add
i) Cheque directly deposited by Ramesh 8,000
ii) Interest allowed by bank 500
iii) Cheque issued but not presented to bank 10,000 18,500
67,500

Minus
i) Cheque deposited but not collected 24,000
ii) Insurance premium paid by bank 6,000
iii) Bank charges 100 30,100
Balance as per Pass Book (Cr) 37,400

Q.3 From the following particulars, prepare a Bank Reconciliation statement as on

31st March 2012
1. Balance as per Pass Book on 31st March 2012, overdrawn 8,000
th
2. Cheque drawn on 25 March 2012 but not collected till April 2012-
1,500, 500 & 800
3. Interest on bank OD not entered in the Cash Book 200
4. Outstation cheque 3,000 deposited into the bank but collected in April
2012

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 5. 1,000 Insurance Premium paid by the bank as per the trader’s standing
order has not been entered in Cash Book
6. Chamber of Commerce fee 300 paid by the bank but not recorded in
cash book
7. Collection charges of 100 charged by the bank but not entered in cash
book (Grewal 12.24)
Answer Q.3

Particulars Amount Amoung

Overdraft as per Pass Book(Dr.) 8,000

Add 2,800 2,800
1. Cheque issued but not paid by the bank 10,800
1,500+500+800
200
Minus 3,000
1) Interest charged by bank on OD 1,000
2) Outstation cheque deposited into Bank but not 300
Collected 100 4,600
3) Payment of insurance premimum by the bank 6,200
And not entered in Cash Book
4) Fee for Chamber of Commerce paid by the
bank for no entry in Cash Book
5) Collection charges debited by the bank for
which no entry is made in Cash Book

Q.4 (2011 Qn) The Cash Book of a firm showed an Overdraft 30,000 on 31st
March 2009. A comparison of the entries in the cash book and pass book revealed
that:
1. On 22nd March 2009, cheques totaling 6,000 were sent to bankers for
collection. Out of these, a cheque 1,000 was wrongly recorded on the
credit side of the cash book and cheque amount to 300 could not be
st
collected by bank before 1 April 2009
2. A cheque for 4,000 was issued to a supplier on 28th March 2009. The
cheque was presented to bank on 4th April 2009.
3. There were debits of 2,600 in the pass book for interest on Overdraft
and bank charges, but the same had not been recorded in the cash book

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 4. A cheque for 1,000 was issued dto a creditor on 27 th March 2009, but by
mistake the same was not recorded in the cash book. The cheque was,
however, duly encashed by 31st March 2009
5. As per standing iunstructions, the banker collected divident of 500 on
st
behalf of the firm and credited the same to its account by 31 March, 2009.
The fact was, however, intimated to the firm on 3rd April 2009
6. Answer: 4(2011 Qn.AAO)

Particulars Amount Amount

Overdraft as per Cash Book (Cr.) 30,000

Add
i) Cheque deposited not collected by bank 300
II)Interest on OD charged by bank 2,600
iii)Cheque issued and paid by bank not recorded 1,000 3,900
in cash book 33,900
Minus
i) Cheque issued to supplier not presented
ii)Dividend collected by bank not entered in cash 4,000
book 5,00
iii)Wrong entry in cash book of a cheque sent for
collection** 1,000
Overdraft as per Pass Book 5,500
28,400
7. **By crediting the entry of ‘cheque deposit into the bank’ OD is increased
as per Cash book. It should have been entered in Dr. side, thereby OD must
have been decreased.

Q.5 Following information has been given by Rajendra. Prepare Bank

Reconcilation statemen t on 31 st Decem. 2012 showing the balance as per the
cash book
1. Debit balance shown by the pass book Rs. 17,800
2. Cheque Rs. 21,600 were issued in the last week of December but only of Rs.
14,800 were presented for paymebnt
3. Cheques Rs. 10,750 were presented to the bank. Out of them, a cheque of
Rs.4,200 was credited in the first week of Janmuary 2013
4. A cheque for Rs. 1200 was debited in the Cash Book but was not presented in
the bank
5. Insurance premium paid by the bankn Rs. 1450
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6. A bill of Exchage of Rs. 6200 which discounted with the bank was returned
dishonoured but no entry was made in the cash book
7. Bank Charges and interest charged by the bank Rs. 350 not entered in cash
book (Grewal 12.26)
Ans.5

Particulars Plus Minus

Balance as per Pass Book (DR)(Overdraft) 17,800
Less: Cheque issued but not presented for payment 6,800
Add:
1. Cheque sent to bank but not collected & 4,200
credited
2. Cheque debited in cash book but not presented 1,200
in the bank
3. Insurance paid by bank 1,450
4. Bill dishoarded but not entered in cash book 6,200
5. Bank charges & Int. charged by bank 350
6. Balance as per Cash Book (Cr)(OD) 11,200
24,600 24,600

(Grewal 12.26)