Account 3 Marks Question

What is a Bank Reconciliation Statement? Explain the purpose of preparing such a statement.

On 31st March, 2019. Bank Account in the books of Ramesh shows a credit balance of ₹ 36,000. On the same date, outstanding cheques amounted to ₹ 14,000 and outstanding deposits a mounted to ₹ 20,000. A cheque for ₹ 5,000 received from a debtor, was subsequently dishonoured. The receipt had been correctly recorded but no entry has yet been made in the books for the dishonour. On the basis of the above information, determine the balance as per the Bank Statement.

On 31st March, 2019, the balance as per the Bank Statement was ₹ 10,000 debit. On the same date, outstanding cheques amounted to ₹ 30,000 and outstanding deposits amounted to ₹ 50,000. Also, there was a dishonoured cheque from a customer of ₹ 5,000 recorded in the Bank Statement but not in the Cash Book. On the basis of the above information, determine the balance as per the Cash Book.

In the following Bank Reconciliation Statemnt. determine the missing amounts:

Prepare Bank Reconciliation Statement from the following:

		₹
(i)	Debit balance as per the Cash Book.	15,000
(ii)	Cheques deposited but not cleared.	1,000
(iii)	Cheques issued but not presented.	1,500
(iv)	Bank interest.	200