DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH

Name of the Participant : M. Ramakrishna

Designation : Head of Section
Branch : Commercial & Computer Practice
Institute : Govt. Polytechnic for women,
Bheemunipatnam
Year/Semester : I Year
Subject : Accountancy-I
Sub-code : CCP-102
Topic : Bank Reconciliation Statement
Sub Topic : Purpose & meaning of
Bank Reconciliation Statement
Duration : 50 Minutes
Teaching aids : Power Point Presentation

CCP102.76 1
Objectives

 on completion of this period, you

would be able to understand the
meaning and purpose of
 Pass Book and Cash Book
 Bank Reconciliation Statement

CCP102.76 2
What is a Pass Book?

 A true copy of the Bank Ledger Account

CCP102.76 3
 Proforma of Pass Book
PASS BOOK PROFORMA
STATE BANK OF INDIA

A/c No. ………

NAME:
ADDRESS:
Date Particulars Cheque No. Dr. Cr. Balance Initials
Rs. Rs. Rs.

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 Entries in Pass Book by the Banker

 Deposits - Credit Side

 Payments - Debit Side

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Use of Cheque

 To make payments or

 to withdraw cash by cheque

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Proforma of a Cheque

Bheemunipatnam
Date:
Andhra Bank
Bheemunipatnam

Pay …………………….………………….…………………... Or order

Rupees: ………………………………………………….
Rs.

A/c No. ……. Signature

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Use of Pay-in-Slip

 To deposit cash or

 Cheques into the Bank

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Proforma of a Pay-In-Slip
State Bank of India
BheemunipatnamDate: Date:

Account Common Pay-in Slip

For the Credit of the Account of (Name):………………………………….

Amount (in words) Rupees: ………………………………………………

Rs. Rs

Deposited by (Signature)

CCP102.76 9
What is the need for Bank Column in
Three Column Cash Book?
 In Modern Organisations
 Cash Transactions are many in number
 Amount of cash transactions is high and
 Deals with bank

To gain the following advantages

 Cheques received can be deposited

 All payments can be made through cheques

CCP102.76 10
 Three Column cash Book Proforma
Dr. Cr.

Date Part L/F Disc Cash Bank Date Part L/F Disc Cash Bank
icul ount Rs. Rs. icul ount Rs. Rs.
ars Rs. ars Rs.

CCP102.76 11
 Recording of Entries in Cash Book by the
Trader

 Receipts - Debit Side

 Payments - Credit Side

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Hence, all the receipts and payments are
recorded in

 Pass Book maintained by the Banker

 Cash Book maintained by the Trader

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 The Balance shown by Pass Book and Cash

Book should be the same

 Nature of the Balance will just be the

opposite

 But in practice the Balances of Cash Book

and Pass Book seldom agree

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 The reason being:

 Time gap between recording of transactions

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Bank Reconciliation Statement

 A Statement prepared by the trader

at periodical intervals
 To know the reasons for the
 disagreement between the balances of
 Cash Book and Pass Book

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Proforma of Bank Reconciliation Statement

Particulars Amount Amount

Rs. Rs.
Balance as per Pass Book ---
Add: 1 --------- ---
2 --------- --- ---
---
---
Less: 1 ---------- --- ---
2 ---------
---
Balance as per Cash Book
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Quiz

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1. A Statement prepared to reconcile the
balances of Cash Book and Pass Book

a. Cash Book Statement

c. Pass Book Statement

e. Bank Reconciliation Statement

g. Bank Statement

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2. Pass Book is the copy of

a. Three Column Cash Book

c. Bank Leger Account

e. Two Column Cash Book

g. Single Column Cash Book

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3. Bank Reconciliation Statement prepared by

a. Banker

c. Trader

e. Customer

g. Cashier

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4. Nature of Balance of Cash Book &
Pass Book is

a. Same

c. Not same

e. Opposite

g. Equal

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 Summary
 We discussed about
 Pass Book and Cash Book

 Purpose of Bank Reconciliation Statement

 Proforma of Bank Reconciliation Statement

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Frequently asked questions

1. What is Bank Reconciliation Statement?

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