Bank Reconciliation Statement Account - Bank Reconciliation Statement

A bank reconciliation statement is:

A bank reconciliation statement is prepared by:

Find out the Bank Balance as per Cash Book from the following particulars:
Overdraft as per Pass Book = ₹ 5,000.
Cheques deposited into the bank but not credited = ₹ 2,000

A bank reconciliation statement is prepared with the balance of:

A Pass Book is a copy of:

While starting with Pass Book overdraft bank interest credited in the Pass Book is to be written in minus column.

Pass Book overdraft is less than Cash Book overdraft when there are cheques deposited but not collected by bank.

Normally, if Cash Book shows a debit balance, Pass Book also shows a debit balance.

Favourable bank balance as per Cash Book will be less than pass book balancem when there are cheques issued but not presented for payment.

Debit balance in Pass Book means overdraft.

Cheques issued but not presented for payment are recorded or not recorded in an amended cash book? Give reason for your answer.

A cheque to ₹ 32,000 sent to bank for collection has been recorded in the cash book as ₹ 23,000. Will it be recorded in the amended cash book?

What is the reason that cheques deposited into bank but dishonoured by the bank are recorded in the amended cash book?

Give four causes of difference in the Cash Book balance (bank column) and Pass Book balance.

Prepare a bank reconciliation statement, taking imaginary figures, starting with the credit balance as per Cash Book.

On 31st December, 2014 my Cash Book showed a credit balance of ₹ 8,800. I had paid into Bank three cheques amounting to ₹ 6,000 on 24th December of which I found ₹ 3,200 have been credited in the Pass Book under date 5th January 2015. I had issued cheques amounting to ₹ 8,000 before 31st December of which I found ₹ 2,500 have been debited in the Pass Book after 1st January 2015. I find a debit of ₹ 50 in respect of bank charges in the Pass Book which I have adjusted in the Cash Book on 31st Dec. There is a credit of ₹ 360 for interest on securities in the Pass Book which remains to be adjusted. A cheque of ₹ 1,200 deposited into bank has been dishonoured.
Prepare Bank Reconciliation Statement as on 31st Dec. 2014.

My bank Pass Book showed an overdraft of ₹ 6,500 on 31st March, 2017. This does not agree with the Cash Book balance. From the following particulars ascertain the Cash Book balance:- Cheques amounting to ₹ 15,000 were paid into bank in March, out of which, it appears, only cheques amounting to ₹ 4,500 were credited by bank. Cheques issued during March amounted in all to ₹ 11,000. Out of these cheques for ₹ 3,000 were unpaid on 31st March, 2017. The Pass Book stands debited with ₹ 150 for interest and with ₹ 30 for bank charges. The bank had paid the annual subscription of ₹ 100 to my club according to my instructions. The entries for interest, bank charges and subscription have not yet been made in Cash Book.

Prepare Bank Reconciliation Statement from the following particulars on June 30, 2016: Bank Statement showed a favourable balance of ₹ 9,214.

1. On 29th June, the bank credited the sum of ₹ 1,650 in error.
2. Certain cheques, valued at ₹ 4,500 issued before June 30, were not cleared.
3. A hire purchase payment of ₹ 950, made by a standing order was not entered in the cash book.
4. A cheque of ₹ 600 received, deposited and credited by bank, was accounted as a receipt in the cash column of the cash book.
5. Other cheques for ₹ 8,500 were deposited in June but cheques for ₹ 6,000 only were cleared by the bankers.

Rim Zim Ltd. maintains a current account with the State Bank of India. On 31st March, 2017, the bank column of its cash book showed a debit balance of ₹ 1,54,300. However, the bank statement showed a different balance as on that date. The following were the reasons for the difference:

(i)	Cheques deposited, but not yet credited by the bank	75,450
(ii)	Cheques issued, but not yet presented for payment	80,760
(iii)	Bank charges not yet recorded in the cash book	1,135
(iv)	Cheques received by the bank directly from trade debtors	1,35,200
(v)	Insurance premium paid by the bank as per standing instructions, but not yet recorded in the cash book	15,400
(vi)	Dividend collected by the bank, but not yet recorded in the cash book	1,000

Find out the balance as per the bank statement as on 31st March, 2017.

On 30th June, 2014 the Pass Book of Sh. Mahabir Prashad showed a balance of ₹ 22,000. On comparing the Pass Book with Cash Book the following differences were found:-

1. Mahabir Prashad had paid into the Bank on 26th June four cheques for ₹ 3,000; ₹ 6,000; ₹ 8,000 and ₹ 10,000. Of these, the cheque for ₹ 6,000 was credited by the bank in July 2014.
2. On 23rd June three cheques were drawn for ₹ 12,000; ₹ 13,000 and ₹ 16,000. The first two cheques were presented to the bank for payment in June and the third in July 2014.
3. Cheques amounting to ₹ 3,600 were deposited in the bank but no entry was passed in the Cash Book.
4. Bank charges entered in Cash Book twice ₹ 50.
5. Cheque received entered twice in the Cash Book ₹ 3,200.

Prepare a Bank Reconciliation Statement as on 30th June 2014.

The bank statement of Mr. James Flint showed an overdraft to the tune of ₹ 60,400 as on 31-12-2014. Cash Book showed a debit balance of ₹ 2,00,120 as on the same date. The following further facts are available:

		₹
(a)	Cheque issued to Tax Consultants was not cashed till 31-12-2014.	12,000
(b)	Cheque issued to Management Consultancy Services was cashed on 14-1-2015.	20,000
(c)	Cheque received from M/s General Studies and deposited into the bank was credited in the account on 3-1-2015.	2,20,000
(d)	Dividend warrant deposited on 29-12-2014 was not credited by the bank till 31-12-2014.	74,400
(e)	Bank charge not adjusted in books of Mr. Flint till 31-12-2014	680
(f)	Interest credited by the bank and not adjusted in the books till 31-12-2014	2,560

Prepare a Bank Reconciliation Statement of Mr. James Flint as on 31-12-2014.

On 31st January, 2017 the Pass Book of Shri M.L. Gupta shows a debit balance of ₹ 41,000. Prepare a bank reconciliation statement from the following particulars:-

1. Cheques amounting to ₹ 15,600 were drawn on 27th January, 2017. Out of which cheques for ₹ 11,000 were encashed up to 31-1-2017.
2. A wrong debit of ₹ 800 has been given by the bank in the Pass Book.
3. A cheque for ₹ 200 was credited in the Pass Book but was not recorded in the Cash Book.
4. Cheques amounting to ₹ 21,000 were deposited for collection. But out of these, cheques for ₹ 7,400 have been credited in the Pass Book on 5th February, 2017.
5. A cheque for ₹ 1,000 was returned dishonoured by the bank and was debited in the Pass Book only.
6. Interest on overdraft and bank charges amounting to ₹ 100 were not entered in the Cash Book.
7. A cheque of ₹ 500 debited in the Cash Book omitted to be banked.

Prepare a Bank Reconciliation Statement from the following particulars as on 31st March 2015:

1. Cheques were deposited into bank on 25th March for ₹ 20,000. Out of these cheques for ₹ 8,000 were cleared on 4th April, cheques for ₹ 6,000 on 6th April and one cheque for ₹ 1,400 was dishonoured on 7th April.
2. Cheques amounting to ₹ 12,000 were issued in March, out of which cheques for ₹ 2,000 were encashed upto 31st March.
3. A bill for ₹ 5,000 (discounted with the bank in January) dishonoured on 30th March 2015 and noting charges paid by bank ₹ 50. No information regarding the dishonour was received from the bank in March 2015.
4. Cheque issued to a creditor for ₹ 2,000 was through mistake entered in the cash column of the Cash Book. The same has not been presented for payment till today.
5. Receipt side of the Cash Book (bank column) was undercast by ₹ 100.
6. Bank has paid a bill payable amounting to ₹ 2,500 but it has not been entered in the Cash Book.
7. A cheque for ₹ 2,000 issued to Mr. X was omitted to be recorded in Cash Book.
8. Dr. balance as per Pass Book was ₹ 7,200.

On 30th June, 2014, the bank column of Mohan Kapoor's Cash Book showed a debit balance of ₹ 12,000. On checking the Cash Book with bank statement you find that:-

1. Cheques paid into Bank ₹ 8,000, but out of these only cheques of ₹ 6,500 were cleared and credited by the Bankers upto 30th June.
2. Cheques of ₹ 9,200 were issued but out of these only cheques of ₹ 7,000 were presented for payment upto 30th June.
3. The receipt column of the Cash Book has been undercast by ₹ 200.
4. The Pass Book shows a credit of ₹ 330 as interest on investments collected by bankers and debit of ₹ 60 for bank charges.
5. On 29th June a Customer deposited ₹ 3,000 direct in the bank account but it was entered only in the Pass Book.

Prepare a Bank Reconciliation Statement.

On 30th June 2014, the Cash Book of a trader shows a bank overdraft of ₹ 2,500. Following informations are available:-

1. Cheques amounting to ₹ 14,600 had been paid to the bank, but of these only ₹ 12,200 were credited in the Pass Book, up to 30th June, 2014.
2. He had also issued cheques amounting to ₹ 10,000, out of which only ₹ 3,600 had been presented for payment.
3. A cheque of ₹ 500 which he had debited to the bank account was not sent to bank for collection by mistake.
4. There is a debit in the Pass Book of ₹ 10 for Bank Charges and ₹ 50 for interest.
5. A customer directly paid into his bank ₹ 1,000, but it was not shown in the Cash Book.
6. Bank has paid insurance premium of ₹ 400 according to his instructions, but this is not recorded in the Cash Book.

Prepare a Bank Reconciliation Statement.