NCERT Solutions for Class 11-commerce Accountancy Part I Chapter 5 - Bank Reconciliation Statement

Page / Exercise

Chapter 5 - Bank Reconciliation Statement Exercise 174

Question SA 1

State the need for the preparation of bank reconciliation statement?

Solution SA 1

The need and importance of the bank reconciliation statement are as follows:

  • It ensures accuracy of the balances and records shown by the pass book and cash book.
  • It detects the errors which might have occurred in a cash book in connection with bank transactions and helps in rectifying those errors.
  • Regular preparation of bank reconciliation statement helps in prevention of frauds.
  • It detects any undue delay caused during the recording of transactions or collection of cheques. This helps in taking appropriate action to prevent any further delay.
  • It keeps a check on the accuracy of entries made in both the books.
  • It helps in updating the cash book as per the pass book. 
Question NUM 1

From the following particulars, prepare a, bank reconciliation statement as at March 31, 2017.

  1. Balance as per cash book Rs.3,200. 
  2. Cheque issued but not presented for payment Rs.1,800. 
  3. Cheque deposited but not collected Rs.2,000. 
  4. Bank charges debited by bank Rs.150. 
Solution NUM 1

Bank Reconciliation Statement, as on March 31, 2017

S. No. 

Particulars 

(+) 

Amount 

Rs. 

(-) 

Amount 

Rs. 

 

Balance as per the Cash Book 

3,200

 

i.

Cheque issued but not presented for payment

1,800

 

ii.

Cheque deposited but not cleared

 

2,000

iii.

Bank charges

 

150

 

 

 

 2,150

 

Balance as per the Pass Book (5,000-2,150) 

 

 2,850

 

 

5,000

5,000

 

Question SA 2

 What is a bank overdraft? 

Solution SA 2

When a firm or an account holder withdraws excess amount over the available bank balance, the account, then, runs a negative bank balance. The negative balance is called a bank overdraft. In other words, bank overdraft is the excess of withdrawals over deposits and is considered a liability to an account holder.

Question SA 3

Briefly explain the statement 'wrongly debited by the bank' with the help of an example.

Solution SA 3

The statement 'Wrongly debited by the bank' is alleged when the bank wrongly debits the customer's account. A wrong debit reduces the account balance of the customer. Wrong debits occur when a transaction is wrongly recorded or when incorrect amount is debited from an account. Such errors can occur in the following two cases:

  1. A person has more than one account in a bank: A cheque of Rs.4,000 issued from his/her savings account was wrongly paid through his/her current account.
  2. Amounts of cheques are wrongly recorded: A cheque payment of Rs.60,000 was wrongly debited in the pass book as Rs.6,000.
Question SA 4

State the causes of difference occurred due to time lag.

Solution SA 4

The causes of difference which occur because of time lag are given below:

a. Cheques issued but not presented for payment at the bank.

The firm/customer issues cheques to its suppliers or creditors. But not all these cheques are presented to the bank. The entry in the cash book is made immediately on issue of the cheque but the bank will not pass an entry until the cheque is presented for payment.

 

b. Cheques paid or deposited but not collected and credited by the bank.

Entry is passed by the firm in the cash book when it receives cheques from its debtors which increase the balance as per the cash book. But the bank credits the firm's account only when they have received the payment from the customer's bank or in other words, once the cheque is collected by the bank.

Question SA 6

Enumerate the steps to ascertain the correct cash book balance. 

Solution SA 6

Most of the transaction items which normally cause differences between the balances appear only in the pass book. Such items are first recorded in the cash book to find the adjusted balance of the cash book and then the bank reconciliation statement is prepared. The below given steps are involved in the preparation of adjusted cash book.

Step 1: The bank balance as per the cash book is noted.

Step 2: All the errors committed in the cash book are to be recorded and rectified.

Step 3: Transaction present only on the credit side of the pass book needs to be recorded on the debit side of the cash book.

Step 4: Transaction present only on the debit side of the pass book needs to be recorded on the credit side of the cash book.

Step 5: Total the cash book and find the balancing figure. This balancing figure is used for preparing the bank reconciliation statement.

Question LA 1

What is a bank reconciliation statement? Why is it prepared?

Solution LA 1

Business organisations maintain the cash book for recording cash and bank transactions. It shows the balance of both the accounts at the end of an accounting period.

Similarly, the bank also maintains an account for each customer in its book. All deposits made by the customer are recorded on the credit side of the account and all withdrawals are recorded on the debit side of the account.

A copy of this is sent to the customer by the bank. This is called pass book or bank statement. This statement is used by the firm to tally its bank transactions as recorded by the bank with the cash book. The balance of the cash book must tally with that of the pass book.

But as both the books are maintained by two different parties, the bank balances as shown by the cash book and that shown by the pass book do not always match. The entries in both the books are, thus, compared and the items because of which the difference has occurred are determined and rectified. Thus, to reconcile the balances of the cash book and the pass book, a statement is prepared. This statement is called the bank reconciliation statement.

Specimen of Bank Reconciliation Statement 

Format 1

Bank Reconciliation Statement of XYZ as on ……

 

Particulars

Amount Rs. 

Amount Rs. 

 

Balance as per cash book

 

 

XXX

Add

Cheque issued but not presented for payment

XXX

 

 

Bank interest

XXX

 

 

Direct deposit by a customer

XXX

XXX

 

 

 

XXX

Less

Cheque deposited but not credited

XXX

 

 

Insurance premium paid

XXX

 

 

Bank charges

XXX

XXX

 

Balance as per pass book

 

XXX

 

Format 2 

Bank Reconciliation Statement of XYZ as on ……

 

Particulars

(+)

Amount

Rs. 

(-)

Amount

Rs. 

1.

Balance as per cash book

XXXX

 

2.

Cheques deposited but not collected by the bank

 

XXX

3.

Bank charges not recorded in the cash book

 

XXX

4.

Cheques issued but not presented for payment

XXX

 

5.

Amount directly deposited in the bank

XXX

 

6.

Balance as per pass book

 

XXXX

 

 

XXXX

XXXX

 

Question LA 2

Explain the reasons where the balance shown by the bank passbook does not agree with the balance as shown by the bank column of the cash book.

Solution LA 2

The reason for the error in balance between the cash book and pass book can be stated as follows:

 Timing difference on recording of the transactions

While comparing the balances of both the accounts, transactions found usually appear only in the cash book or only in the pass book. Such differences are caused by the time gap in recording the transactions in the books relating to either receipts or payments.

o Transactions which appear in the cash book but not in the pass book:

a. Cheques issued but not presented for payment at the bank

The firm/customer issues cheques to its suppliers and creditors, but not all these cheques are presented to the bank. The entry in the cash book is made immediately on issue of the cheque but the bank will not pass an entry until the cheque is presented for payment.

b. Cheques paid or deposited but not collected and credited by the bank 

Entry is passed by the firm in the cash book when it receives cheques from its debtors which increase the balance as per the cash book. But the bank credits the firm's account only when they receive the payment from the customer's bank or in other words, once the cheque is collected by the bank.

o Transactions which appear in the pass book but not in the cash book:

a. Direct bank charges, commission and interest debited by the bank 

Bank provides us various services for which it levies some charges which is directly debited from the firm's account. The firm will know of these charges only after she/he verifies the entries with the bank statement.

Example: Interest on overdraft, unpaid cheques and cheque collection charges

b. Expenses directly paid by the bank on behalf of the customers 

Depending upon the standing instruction of the customer, the bank makes regular payment on behalf of the customer. The bank debits the customer's account when the payment is made but the firm will pass the entry in his book only after he receives the bank statement. Thus, the balance as per the pass book will be less than the balance in the cash book.

Example: Insurance premium, telephone bills and rent

c. Amounts directly deposited in the customer's account

There are times when the firm's debtors deposit money or make payments directly into the firm's bank account. This results in an increase in the balance of the bank account. As no intimation is received by the firm, there will be no record of the same in the cash book.

d. Incomes directly collected by the bank on behalf of customer but not recorded in cash book

As per the agreement between the customer and the bank, the bank directly accepts payments such as dividends and rents and credits the same into the customer's account. This increases the balance as per the pass book and causes a decrease in the balance in the pass book.

e. Cheques deposited dishonoured or bills discounted dishonoured

The bank sometimes allows the facility of discounting the bills of the customers. If such a bill is dishonoured on its date of maturity, the same is debited to customers account. As this information is not available to the firm, there will be no entry in the cash book. Similarly, when a cheque deposited by the firm in the bank is dishonoured, the same is debited to the customer's account. As a result, there is a difference between the balances of the cash book and the pass book.

 Errors in recording transactions by the firm or by the bank

Errors such as wrong recordings relating to cheques deposited/issued, wrong totaling or omission can be committed by the bank or the firm which can cause a difference between the cash book and the pass book balance.

Example: Wrong recording can be passed by the bank because of the similarity in names of its customers or some error caused by the clerk of the bank.

Cheques received by the firm are sent to the bank without passing an entry in the cash book or cheques received from the customers are omitted to be sent to the bank but an entry has been passed in the cash book.

Question LA 3

Explain the process of preparing bank reconciliation statement with amended cash balance.

Solution LA 3

The below given steps are involved in the preparation of adjusted cash book.

Step 1: The bank balance as per the cash book is noted.

Step 2: All the errors committed in the cash book to be recorded are rectified.

Step 3: Transaction present only on the credit side of the pass book needs to be recorded on the debit side of the cash book.

Step 4: Transaction present only on the debit side of the pass book needs to be recorded on the credit side of the cash book.

Step 5: Total the cash book and find the balancing figure. This balancing figure is used for preparing the bank reconciliation statement.

The performa of the bank reconciliation statement through amended balance is given below:

Bank Reconciliation Statement, as on ________________ 

Particulars 

Amount 

Rs. 

(Add) 

Amount 

Rs. 

(Less) 

Adjusted balance as per the amended the cash book 

XXX 

 

Adjusted balance as per the amended the cash book 

XXX 

 

Add: Cheque issued but not presented 

 

XXX 

Less: Cheque deposited but not credit 

 

 

 

Question SA 5

Briefly explain the term favourable balance as per cash book.

Solution SA 5

Favourable balance is the excess of total of debit side over total of credit side in a bank column of a cash book. It is also known as debit balance as per the cash book. In other words, favourable balance means excess of deposits over withdrawals.

Chapter 5 - Bank Reconciliation Statement Exercise 175

Question NUM 2

On March 31 2017 the cash book showed a balance of Rs.3,700 as cash at bank, but the bank passbook made up to same date showed that cheques for Rs.700, Rs.300 and Rs.180 respectively had not presented for payment, Also, cheque amounting to Rs.1,200 deposited into the account had not been credited. Prepare a bank reconciliation statement.

Solution NUM 2

Bank Reconciliation Statement, as on March 31, 2017

S. No. 

Particulars 

(+) 

Amount 

Rs. 

(-) 

Amount 

Rs. 

 

Balance as per the Cash Book 

3,700

 

i.

Three cheques issued but not presented for payment (700+300+180)

1,180

 

ii.

Cheque deposited but not cleared

 

1,200

 

Balance as per the pass book (4,880-1,200) 

 

3,680

 

 

4,880

4,880

 

Question NUM 3

The cash book shows a bank balance of Rs.7,800. On comparing the cash book with passbook the following discrepancies were noted:

  1. Cheque deposited in bank but not credited Rs.3,000.
  2. Cheque issued but not yet present for payment Rs.1,500.
  3. Insurance premium paid by the bank Rs. 2,000.
  4. Bank interest credit by the bank Rs.400.
  5. Bank charges Rs.100.
  6. Directly deposited by a customer Rs.4,000.
Solution NUM 3

 

Bank Reconciliation Statement 

S. No. 

Particulars 

(+) 

Amount 

Rs. 

(-) 

Amount 

Rs. 

 

Balance as per the cash book 

7,800

 

a.  

Cheque deposited but not credited in the pass book

 

3,000

b.  

Cheque issued but not yet presented for payment

1,500

 

c.  

Insurance premium paid by bank

 

2,000

d.  

Bank interest received

400

 

e.  

Bank charges

 

100

f.  

Amount directly deposited by customer

4,000

5100

 

Balance as per the pass book (13700 - 5,100) 

 

8,600

 

 

13,700

13,700

 

Question NUM 4

Bank balance of Rs.40,000 showed by the cash book of Atul on December 31, 2016. It was found that three cheques of Rs.2,000, Rs.5,000 and Rs.8,000 deposited during the month of December were not credited in the passbook till January 02, 2017. Two cheques of Rs.7,000 and Rs.8,000 issued on December 28 were not presented for payment till January 03, 2017. In addition to it bank had credited Rs.325 as interest and had debited him with Rs.50 as bank charges for which there were no corresponding entries in the cash book.

Prepare a bank reconciliation statement as on December 31, 2016.

Solution NUM 4

 

Bank Reconciliation Statement of Atul as on December 31, 2016

S. No. 

Particulars 

(+) 

Amount 

Rs. 

(-) 

Amount 

Rs. 

 

Balance as per the cash book 

40,000

 

a.  

Cheque deposited but not credited in the pass book (2,000+5,000+8,000)

 

15,000

b.  

Cheque issued but not yet presented for payment (7000+8000)

15,000

 

c.  

Bank allowed interest

325

 

d.  

Bank debited charges

 

50

 

 

 

15,050

 

Balance as per the pass book (55325 - 15,050) 

 

40,275

 

 

55,325

55,325

 

Question NUM 5

On comparing the cash book with passbook of Naman it is found that on March 31, 2017, bank balance of Rs.40,960 showed by the cash book differs from the bank balance with regard to the following:

  1. Bank charges Rs.100 on March 31, 2017, are not entered in the cash book.
  2. On March 21, 2017, a debtor paid Rs.2,000 into the company's bank in settlement of his account, but no entry was made in the cash book of the company in respect of this.
  3. Cheques totaling Rs.12,980 were issued by the company and duly recorded in the cash book before March 31, 2017, but had not been presented at the bank for payment until after that date.
  4. A bill for Rs.6,900 discounted with the bank is entered in the cash book with recording the discount charge of Rs.800.
  5. Rs.3,520 is entered in the cash book as paid into bank on March 31st, 2017, but not credited by the bank until the following day.
  6. No entry has been made in the cash book to record the dishonor on March 15, 2017 of a cheque for Rs.650 received from Bhanu.

Prepare a reconciliation statement as on March 31, 2017.

Solution NUM 5

 

Bank Reconciliation Statement of Naman as on March 31, 2017

S. No.

Particulars

(+)

Amount

Rs. 

(-)

Amount

Rs. 

 

Balance as per the Cash book

40,960

 

 i.  

Bank debited charges

 

100

 ii.  

Amount directly paid by debtor into bank account

2,000

 

 iii.  

Cheques issued but not presented for payment

12,980

 

 iv.  

Discount charges of bill was omitted to be recorded in the Cash Book

 

800

 v.  

Amount debited in bank column of the Cash Book but not deposited in bank

 

3,520

 vi.  

Cheque dishonoured not recorded in the Cash Book

 

650

 

 

 

5,070

 

Balance as per the Pass book

(55,940-5,070)

 

50,870

 

 

55,940

55,940

 

 

 

 

 

Chapter 5 - Bank Reconciliation Statement Exercise 176

Question NUM 6

Prepare bank reconciliation statement as on December 31, 2017. On this day the passbook of Mr. Himanshu showed a balance of Rs.7,000.

  1. Cheques of Rs.1,000 directly deposited by a customer.
  2. The bank has credited Mr. Himanshu for Rs.700 as interest.
  3. Cheques for Rs.3,000 were issued during the month of December but of these cheques for Rs.1,000 were not presented during the month of December.

 

Solution NUM 6

Bank Reconciliation Statement of Mr. Himanshu as on December 31, 2017

S. No

Particulars

(+)

Amount

Rs.

(-)

Amount

Rs.

 

Balance as per the Pass book

7,000

 

a. 

Cheques directly deposited by a customer

 

1,000

b. 

Bank allowed interest

 

700

c. 

Cheques issued but not presented for payment in December

 

1,000

     

2,700

 

Balance as per the Cash book (7,000-2,700)

 

4,300

   

7,000

7,000

   

 

 

Question NUM 7

From the following particulars prepare a bank reconciliation statement showing the balance as per cash book on December 31, 2016.

  1. Two cheques of Rs.2,000 and Rs.5,000 were paid into bank in October, 2016 but were not credited by the bank in the month of December.
  2. A cheque of Rs.800 which was received from a customer was entered in the bank column of the cash book in December 2016 but was omitted to be banked in December, 2016.
  3. Cheques for Rs.10,000 were issued into bank in November 2016 but not credited by the bank on December 31, 2016.
  4. Interest on investment Rs.1,000 collected by bank appeared in the passbook.

Balance as per Passbook was Rs.50,000

Solution NUM 7

6Bank Reconciliation Statement as on December 31, 2016

S. No. 

Particulars 

(+) 

Amount 

Rs. 

(-) 

Amount 

Rs. 

 

Balance as per the Pass book 

50,000

 

a.  

Cheques deposited but not cleared till 31 December

7,000

 

b.  

Cheque debited in the Cash Book but not deposited in the bank

800

 

c.  

Cheque issued but not presented (not debited in the Pass Book)

 

10,000

d.  

Interest on investment collected by bank

 

1,000

 

 

 

11,000

 

Balance as per the Cash book (57,800 - 11,000) 

 

46,800

 

 

57,800

57,800

 

Question Num 8

Balance as per passbook of Mr. Kumar is 3,000.

  1. Cheque paid into bank but not yet cleared 

    Ram Kumar Rs.1,000

    Kishore Kumar Rs.500

  2. Bank Charges Rs.300 
  3. Cheque issued but not presented 

    Hameed Rs.2,000

    Kapoor Rs.500

  4. Interest entered in the passbook but not entered in the cash book Rs.100.

Prepare a bank reconciliation statement.
Solution Num 8

Bank Reconciliation Statement of Mr. Kumar

S. No. 

Particulars 

(+) 

Amount 

Rs. 

(-) 

Amount 

Rs. 

 

Balance as per the Pass book 

3,000

 

a.  

Cheques deposited but not yet cleared.

1,500

 

b.  

Bank debited charges

300

 

c.  

Cheques issued but not presented for payment

 

2,500

d.  

Bank allowed interest but not entered in the Cash Book

 

100

 

 

 

2,600

 

Balance as per the Cash book

(4,800-2,200) 

 

2,200

 

 

4,800

4,800

 

Question NUM 9

The passbook of Mr. Mohit current account showed a credit Balance of Rs.20,000 on dated December 31, 2016. Prepare a Bank Reconciliation Statement with the following information.

  1. A cheque of Rs.400 drawn on his saving account has been shown on current account.
  2. He issued two cheques of Rs.300 and Rs.500 on of December 25, but only the Ist cheque was presented for payment.
  3. One cheque issued by Mr. Mohit of Rs.500 on December 25, but it was not presented for payment whereas it was recorded twice in the cash book.
Solution NUM 9

Bank Reconciliation Statement of Mr. Mohit, as on December 31, 2016

S. No. 

Particulars 

(+) 

Amount 

Rs. 

(-)  

Amount 

Rs. 

 

Balance as per pass book

20,000

 

(i)

Cheque issued from saving account wrongly debited in the current account of the pass book

400

 

(ii)

Cheque issued but not presented for payment

 

500

(iii)

Cheque issued but not presented for payment and twice recorded in cash book

 

1,000

 

 

 

1,500

 

Balance as per cash book (20,400-1,500)

 

18,900

 

 

20,400

20,400

 

Chapter 5 - Bank Reconciliation Statement Exercise 177

Question NUM 10

On 1st January 2017, Rs.8,000 as showed by his cash book. Rs.2,000 had been paid in by him but were not collected by the bank by January 01, 2017. He issued cheques of Rs.800 which were not presented to the bank for payment up to that day. There was a debit in his passbook of Rs.60 for interest and Rs.100 for bank charges. Prepare bank reconciliation statement for comparing both the balance.

Solution NUM 10

Bank Reconciliation Statement of Rakesh as on January 01, 2017

 

Particulars 

Amount Details 

Rs. 

Amount 

Rs. 

 

Overdraft as per the Cash Book (Cr.) 

 

8,000

Add: 

Cheques deposited but not yet cleared

2,000

 

 

Interest on overdraft debited by bank

60

 

 

Bank debited charges

100

2,160

 

 

 

10,160

Less:

Cheques issued but not presented for payment

 

800

 

Overdraft as per the Pass Book (Dr.)

 

9,360

 

Question NUM 11

Prepare bank reconciliation statement.

  1. Overdraft shown as per cash book on December 31, 2017 Rs.10,000. 
  2. Bank charges for the above period also debited in the passbook Rs.100. 
  3. Interest on overdraft for six months ending December 31, 2017 Rs.380 debited in the passbook. 
  4. Cheques issued but not encashed prior to December 31, 2017 amounted to Rs.2,150. 
  5. Interest on Investment collected by the bank and credited in the passbook Rs. 600. 
  6. Cheques paid into bank but not cleared before December, 31 2017 were Rs.1,100. 
Solution NUM 11

Bank Reconciliation Statement as on December 31, 2017

 

Particulars 

Amount Details 

Rs. 

Amount 

Rs. 

 

Overdraft as per the Cash Book (Cr.) 

 

10,000

Add:

Bank debited charges

100

 

 

Interest charged by bank on overdraft

380

 

 

Cheques deposited but not cleared

1,100

1580

 

 

 

11,580

Less:

Cheques issued but not presented for payment

2,150

 

 

Interest on investment credited in the Pass Book but not

entered in the Cash Book

600

2,750

 

Overdraft as per the Cash Book (Dr.)

 

8,830

 

Question NUM 12

Kumar find that the bank balance shown by his cash book on December 31, 2017 is Rs. 90,600 (Credit) but the passbook shows a difference due to the following reason:

A cheque (post dated) for Rs.1,000 has been debited in the bank column of the cash book but not presented for payment. Also, a cheque for Rs.8,000 drawn in favour of Manohar has not yet been presented for payment. Cheques totaling Rs.1,500 deposited in the bank have not yet been collected and cheque for Rs.5,000 has been dishonoured.

Solution NUM 12

Bank Reconciliation Statement of kumar as on December 31, 2017

 

Particulars 

Amount Details

Rs. 

Amount 

Rs. 

 

Overdraft as per the Cash Book (Cr.) 

 

90,600

Add:

 

 

 

 

Cheque debited in the Cash Book but not presented for payment

1,000

 

 

Cheque deposited but not yet cleared

1,500

 

 

Cheque dishonoured

5,000

7,500

 

 

 

98,100

Less:

Cheque issued but not presented for payment

8,000

8,000

 

Overdraft as per the Pass Book (Dr.) 

 

90,100

 

Question NUM 13

On December 31, 2017, the cash book of Mittal Bros showed an overdraft of Rs.6,920. From the following particulars prepare a Bank Reconciliation Statement and ascertain the balance as per passbook.

  1. Debited by bank for Rs.200 on account of interest on overdraft and Rs.50 on account of charges for collecting bills. 
  2. Cheques drawn but not encashed before December, 31 2017 for Rs.4,000. 
  3. The bank has collected interest and has credited Rs. 600 in passbook. 
  4. A bill receivable for Rs.700 previously discounted with the bank had been dishonoured and debited in the passbook. 
  5. Cheques paid into bank but not collected and credited before December 31, 2017 amounted Rs.6,000. 
Solution NUM 13

Bank Reconciliation Statement of Mittal Bros. as on December 31, 2017

 

Particulars 

Amount Details 

Rs. 

Amount 

Rs. 

 

Overdraft as per the Cash Book (Cr.) 

 

6,920

Add:

Bank debited interest on overdraft

200

 

 

Bank debited charges for collecting bills

50

 

 

Bill receivable dishonoured

700

 

 

Cheque deposited but not cleared in December

6,000

6,950

 

 

 

13,870

Less:

Cheque issued but not presented for payment

4,000

 

 

Bank collected interest

600

4,600

 

Overdraft as per the Pass Book (Dr.) 

 

9,270

 

Chapter 5 - Bank Reconciliation Statement Exercise 178

Question NUM 14

Prepare bank reconciliation statement of Shri Bhandari as on March 31, 2017.

  1. The payment of a cheque for Rs.550 was recorded twice in the passbook. 
  2. Withdrawal column of the passbook under cast by Rs.200. 
  3. A cheque of Rs.200 has been debited in the bank column of the Cash Book but it was not sent to bank at all. 
  4. A cheque of Rs.300 debited to bank column of the cash book was not sent to the bank. 
  5. Rs. 500 in respect of dishonoured cheque were entered in the passbook but not in the cash book. Overdraft as per passbook is Rs. 20,000. 
Solution NUM 14

Bank Reconciliation Statement of Shri Bhandari as on March 31, 2017

 

Particulars 

Amount Details 

Rs. 

Amount 

Rs. 

 

Overdraft as per the Pass Book (Dr.) 

 

20,000

Add:

Withdrawal column of the Pass Book under cast

200

 200

 

 

 

20,200

Less

Cheque debited in the Cash Book but not presented in the bank

200

 

 

Payment of cheque twice debited in the Pass Book

550

 

 

Cheque added in the Cash Book but not deposited in the bank

300

 

 

Cheque dishonoured not entered in cash book

500

1,550

 

Overdraft as per the Cash Book (Cr.) 

 

18,650

 

Question NUM 15

Overdraft shown by the passbook of Mr. Murli is Rs.20,000. Prepare bank reconciliation statement on dated March 31, 2017.

  1. Bank charges debited as per passbook Rs.500. 
  2. Cheques recorded in the cash book but not sent to the bank for collection Rs.2,500. 
  3. Received a payment directly from customer Rs.4,600. 
  4. Cheque issued but not presented for payment Rs.6,980. 
  5. Interest credited by the bank Rs.100. 
  6. LIC paid by bank Rs.2,500. 
  7. Cheques deposited with the bank but not collected Rs.3,500. 
Solution NUM 15

 

 

Bank Reconciliation Statement of Mr. Murli as on March 31, 2017

 

Particulars 

Amount Details 

Rs. 

Amount 

Rs. 

 

Overdraft as per the Pass Book (Dr.) 

 

20,000

Add:

Cheque issued but not presented for payment

6,980

 

 

Amount received directly by customer in the bank

4,600

 

 

Interest allowed by bank 4600

100

 11,680

 

 

 

31,680

Less:

Bank charges debited in the Pass Book

500

 

 

Cheques deposited but not collected

 3,500

 

 

Cheque recorded in the Cash Book but not sent to bank

2,500

 

 

LIC paid by bank

2,500

9,000

 

Overdraft as per the Cass Book (Cr.) 

 

22,680

 

Question NUM 16

Raghav and Co. have two bank accounts. Account No. I and Account No. II. From the following particulars relating to Account No. I, find out the balance on that account of March 31, 2017 according to the cash book of the firm.

  1. Cheques paid into bank prior to March 31, 2017, but not credited for Rs.10,000. 
  2. Transfer of funds from account No. II to account no. I recorded by the bank on March 31, 2017 but entered in the cash book after that date for Rs.8,000. 
  3. Cheques issued prior to March 31, 2017 but not presented until after that date for Rs.7,429. 
  4. Bank charges debited by bank not entered in the cash book for Rs.200. 
  5. Interest debited by the bank not entered in the cash book Rs.580. 
  6. Overdraft as per Passbook Rs.18,990.
Solution NUM 16

Bank Reconciliation Statement of Mr. Raghav and Co. Account No. I as on March 31, 2017

 

Particulars 

Amount Details 

Rs. 

Amount 

Rs. 

 

Overdraft as per the Pass Book (Dr.) 

 

18,990

Add:

Amount transferred Account II to Account I recorded in the Pass Book but not entered in the Cash Book 

8,000

 

 

Cheque issued but not presented for payment 

7,429

 15,429

 

 

 

18,990

Less:

Cheque deposited but not cleared prior to 31 March 2017

10,000

 

 

Bank debited charges 

200

 

 

Interest on overdraft not credited in the Cash Book 

580

10,780

 

Overdraft as per the Cash Book (Cr.) 

 

23,639

 

Question NUM 17

Prepare a bank reconciliation statement from the following particulars and show the balance as per cash book.

  1. Balance as per passbook on March 31, 2017 overdrawn Rs.20,000. 
  2. Interest on bank overdraft not entered in the cash book Rs.2,000. 
  3. Rs.200 insurance premium paid by bank has not been entered in the cash book. 
  4. Cheques drawn in the last week of March, 2017, but not cleared till date for Rs.3,000 and Rs.3,500. 
  5. Cheques deposited into bank on February, 2017, but yet to be credited on dated March 31, 2017 Rs.6,000. 
  6. Wrongly debited by bank Rs.500. 
Solution NUM 17

Bank Reconciliation Statement as on March 31, 2017

 

Particulars 

Amount Details 

Rs. 

Amount 

Rs. 

 

Overdraft as per the Pass Book (Dr.) 

 

20,000

Add:

Cheques issued but not presented for payment (3000+3500) 

 

 6,500

 

 

 

26,500

Less:

Interest on overdraft not credited in the Cash Book 

2,000

 

 

Cheques deposited but not cleared

6,000

 

 

Insurance premium paid by bank not entered in the Cash Book 

200

 

 

Amount wrongly debited by bank 

500

8,700

 

Overdraft as per the Cash Book (Cr.) 

 

17,800

 

Chapter 5 - Bank Reconciliation Statement Exercise 179

Question NUM 18

The passbook of Mr. Randhir showed an overdraft of Rs.40,950 on March 31, 2017.Prepare bank reconciliation statement on March 31, 2017.

  1. Out of cheques amounting to Rs.8,000 drawn by Mr. Randhir on March 27, a cheque for Rs.3,000 was encashed on April 2017. 
  2. Credited by bank with Rs.3,800 for interest collected by them, but the amount is not entered in the cash book.  
  3. Rs.10,900 paid in by Mr. Randhir in cash and by cheques on March, 31 cheques amounting to Rs.3,800 were collected on April, 07. 
  4. A Cheque of Rs.780 credited in the passbook on March 28 being dishonoured is debited again in the passbook on April 01, 2017. There was no entry in the cash book about the dishonour of the cheque until April 15. 

 

Solution NUM 18

Bank Reconciliation Statement of Mr. Randhir as on March 31, 2017

 

Particulars 

Amount Details 

Rs. 

Amount 

Rs. 

 

Overdraft as per the Pass Book (Dr.) 

 

40,950

Add:

Cheque issued but not presented for payment in March 

3,000

 

 

Interest collected by bank not entered in the Cash Book 

3,800

 

 

Cheque dishonoured in April 

780

7,580

 

 

 

48,530

Less:

Cheque deposited but not yet cleared in March 

 

3,800

 

Overdraft as per the Cash Book (Cr.) 

 

44,730