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Question
On 31st August 2018 bank passbook of Mr. Ravi showed a credit balance of ₹ 33,600, but Cash Book showed a different balance. On comparing the two books following differences were noticed:
- Cheques paid into the bank but not credited before 31st Aug 2018 amounted to ₹ 24,500.
- Direct deposit by the customer through NEFT ₹ 33,000 recorded in the passbook only.
- Cheques issued on 28th Aug 2018 were presented for payment on 5th Sep. 2018 amounted to ₹ 38,800.
- A bill receivable for ₹ 15,000 discounted with the bank was dishonored on 30th Aug 2018. Intimation of the same was received only on 3rd Sep 2018.
- Passbook credit side was overcast ₹ 2,000.
- Bank debited ₹ 400 for bank charges in the passbook, which was not recorded in Cash Book.
Prepare Bank Reconciliation Statement as of 31st August 2018.
Solution
Bank Reconciliation Statement as of 31st August 2018.
| Particulates | Amount (₹) | Amount (₹) |
| Bank balance as per pass book | 33,600 | |
| Add: | ||
| (1) Cheque deposited into the bank but not credited into the pass book | 24,500 | |
| (2) Dishonor of discounted bill not recorded in the cash book | 15,000 | |
| (3) Bank charges debited in the pass book but not recorded in the cash book | 400 | 39,900 |
| 73,500 | ||
| Less: | ||
| (1) Direct deposit by customer through NEFT recorded only in the pass book | 33,000 | |
| (2) Cheque issued but not presented for payment | 38,800 | |
| (3) Pass Book credit side overcast now corrected | 2,000 | 73,800 |
| Bank Overdraft as per Cash Book | 300 |
Working Notes:
To determine the items to be added and deducted in the Bank Reconciliation Statement, we must prepare a Cash Book and a Passbook based on the basic information given in the problem:
| Cash Book (With Bank Column) | |||||
| 2. | NEFT deposit | 33,000 | 4 | Bill dishonoured | 15,000 |
| 6 | Bank Changes | 400 | |||
| (-) | (+) | ||||
| Bank Pass Book | ||||
| 3. | Cheque issued | 38,800 | By Balance b/d | 33,600 |
| 5. | Overcast corrected | 2,000 | Cheque deposited | 24,600 |
| (+) | (+) | |||
Explanation:
- First record the opening balance in the appropriate book and at the appropriate side i.e. either in Cashbook or passbook.
- In the above problem Bank balance of ₹ 33,600 as per the passbook is recorded on the credit side of the passbook in a box.
- In this problem, the entries which are passed on the credit side of the Cashbook and passbook are to be added in the Bank Reconciliation Statement and the entries passed on the debit side of the Cash Book and passbook are to be deducted in the Bank Reconciliation Statement. This is because the opening balance appears on the credit side of the passbook.
- Pass the entry of the given transactions in the book in which entry is not passed due to one or another reason, e.g. cheque of ₹ 24,300 is deposited but not collected. In this case, entry is not passed in the passbook, as the cheque is not collected by the bank. Now draft the entry for the given transaction on the credit side of the passbook. This is because, after the collection of cheques, the bank balance is increased. In the same way for remaining transactions pass the entry in that book where entry is not passed corresponding.
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From the following particulars prepare Bank Reconciliation Statement as on 30th June 2019.
- Credit balance as per pass book ₹ 20,000.
- A cheque for ₹ 3,500 was issued and paid by the bank, recorded in Pass Book as ₹ 5,300.
- Cheque deposited ₹ 9,700 collected by the bank was not recorded in Cash Book.
- Payment side of the Cash Book was undercast by ₹ 100.
- Electricity bill paid by bank ₹ 6,200 was recorded twice in Pass Book.
From the following particulars prepare Bank Reconciliation Statement as on 30th June 2019.
- Credit balance as per Pass Book ₹ 20,000
- A cheque for ₹ 3,500 was issued and paid by bank, recorded in Pass Book as ₹ 5,300.
- Cheque deposited ₹ 9,700 collected by bank was not recorded in Cash Book.
- Payment side of Cash Book was undercast by ₹ 100.
- Electricity bill paid by bank ₹ 6,200 was recorded twice in Pass Book.
From the following particulars prepare Bank Reconciliation Statement as on 30th June 2019.
- Credit balance as per Pass Book ₹ 20,000.
- A cheque for ₹ 3,500 was issued and paid by bank, recorded in Pass Book as ₹ 5,300.
- Cheque deposited ₹ 9,700 collected by bank was not recorded in Cash Book.
- Payment side of Cash Book was undercast by ₹ 100.
- Electricity bill paid by bank ₹ 6,200 was recorded twice in Pass Book.
From the following particulars prepare Bank Reconciliation Statement as of 30th June 2019.
- Credit balance as per pass book ₹ 20,000.
- A cheque for ₹ 3,500 was issued and paid by the bank, recorded in Pass Book as ₹ 5,300.
- Cheque deposited ₹ 9,700 collected by the bank was not recorded in Cash Book.
- Payment side of the Cash Book was undercast by ₹ 100.
- Electricity bill paid by bank ₹ 6,200 was recorded twice in Pass Book.
From the following particulars prepare Bank Reconciliation Statement as on 30th June 2019.
- Credit balance as per Pass Book ₹ 20,000.
- A cheque for ₹ 3,500 was issued and paid by bank, recorded in Pass Book as ₹ 5,300.
- Cheque deposited ₹ 9,700 collected by bank was not recorded in Cash Book.
- Payment side of Cash Book was undercast by ₹ 100.
- Electricity bill paid by bank ₹ 6,200 was recorded twice in Pass Book.
