Chapter 5: Bank Reconciliation statement

Prepare bank reconciliation statement.

(i) Overdraft shown as per cash book on December 31, 2017 ₹ 10,000.

(ii) Bank charges for the above period also debited in the passbook ₹ 100.

(iii) Interest on overdraft for six months ending December 31, 2017 ₹ 380 debited in the passbook.

(iv) Cheques issued but not encashed prior to December 31, 2017 amounted to ₹ 2,150.

(v) Interest on Investment collected by the bank and credited in the passbook ₹ 600.

(vi) Cheques paid into bank but not cleared before December, 31 2017 were ₹ 1,100.

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

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

(1) Debited by bank for ₹ 200 on account of Interest on overdraft and ₹ 50 on account of charges for collecting bills.

(2) Cheques drawn but not encashed before December, 31 2017 for ₹ 4,000.

(3) The bank has collected interest and has credited ₹ 600 in passbook.

(4) A bill receivable for ₹ 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 ₹ 6,000.

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

(i) The Payment of a cheque for ₹ 550 was recorded twice in the passbook.

(ii) Withdrawal column of the passbook under cast by ₹ 200

(iii) Cheque of ₹ 200 has been debited in the bank column of the Cash Book but it was not sent to bank at all.

(iv) A Cheque of ₹ 300 debited to Bank column of the cash book was not sent to the bank.

(v) ₹ 500 in respect of dishonoured cheque were entered in the passbook but not in the cash book. Overdraft as per passbook is ₹ 20,000.

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

(i) Bank charges debited as per passbook ₹ 500.

(ii) Cheques recorded in the cash book but not sent to the bank for collection ₹ 2,500.

(iii) Received a payment directly from customer ₹ 4,600.

(iv) Cheque issued but not presented for payment ₹ 6,980.

(v) Interest credited by the bank ₹ 100.

(vi) LIC paid by bank ₹ 2,500.

(vii) Cheques deposited with the bank but not collected ₹ 3,500.

Raghav & 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.

(i) Cheques paid into bank prior to March 31, 2017, but not credited for ₹ 10,000.

(ii) 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 ₹ 8,000.

(iii) Cheques issued prior to March 31, 2017 but not presented until after that date for ₹ 7,429.

(iv) Bank charges debited by bank not entered in the cash book for ₹ 200.

(v) Interest Debited by the bank not entered in the cash book ₹ 580.

(vi) Overdraft as per Passbook ₹ 18,990.

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

(i) Balance as per passbook on December 31, 2017 overdrawn ₹ 20,000.

(ii) Interest on bank overdraft not entered in the cash book ₹ 2,000.

(iii) ₹ 200 insurance premium paid by bank has not been entered in the cash book.

(iv) Cheques drawn in the last week of December, 2017, but not cleared till date for ₹ 3,000 and ₹ 3,500.

(v) Cheques deposited into bank on November, 2017, but yet to be credited on dated December 31, 2013 ₹ 6,000.

(vii) Wrongly debited by bank ₹ 500.

The passbook of Mr. Randhir showed an overdraft of ₹ 40,950 on March 31, 2017.

Prepare bank reconciliation statement on March 31, 2017.

(i) Out of cheques amounting to ₹ 8,000 drawn by Mr. Randhir on March 27, a cheque for ₹ 3,000 was encashed on April 11.

(ii) Credited by bank with ₹ 3,800 for interest collected by them, but the amount is not entered in the cash book.

(iii) ₹ 10,900 paid in by Mr. Randhir in cash and by cheques on March, 31 cheques amounting to ₹ 3,800 were collected on April, 07.

(iv) A Cheque of ₹ 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