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प्रश्न
Briefly explain the term favourable balance as per cash book
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उत्तर
Favourable balance (Debit Balance), as per the Cash Book, is an asset to an account holder.
It is also known as debit balance as per the Cash Book.
Favourable balance is the excess of total of debit side over total of credit side of a bank column of a Cash Book.
In other words, favourable balance means excess of deposits over withdrawals.
संबंधित प्रश्न
From the following particulars prepare a bank reconciliation statement of Jayakumar as on 31st December, 2016.
- Balance as per cash book ₹ 7,130
- Cheque deposited but not cleared ₹ 1,000
- A customer has deposited ₹ 800 into the bank directly.
From the following particulars of Kamakshi traders, prepare a bank reconciliation statement as on 31st March, 2018.
- Debit balance as per cash book ₹ 10,500
- Cheque deposited into bank amounting to ₹ 5,500 credited by bank, but entered twice in the cash book
- Cheques issued and presented for payment amounting to ₹ 7,000 omitted in the cash book
- Cheque book charges debited by the bank ₹ 200 not recorded in the cash book.
- Cash of ₹ 1,000 deposited by a customer of the business in cash deposit machine not recorded in the cash book.
From the following particulars of Raheem traders, prepare a bank reconciliation statement as on 31st March, 2018.
- Overdraft as per cash book ₹ 2,500. On the same day the balance as per bank statement is ₹ 1,99,000.
- Interest on debentures of ₹ 700 was received by the bank directly.
- Amount received by bank through RTGS amounting to ₹ 2,00,000, omitted in the cash book.
- Two cheques issued for ₹ 1,800 and ₹ 2,000 on 29th March 2018. Only the second cheque is presented for payment.
- Insurance premium on car for ₹ 1,000 paid by the bank as per standing instruction not recorded in the cash book.
From the following information, prepare bank reconciliation statement as on 31st December, 2017 to find out the balance as per bank statement.
| Particulars | ₹ |
| (i) Bank overdraft as per cash book | 20,000 |
| (ii) Cheques deposited but not yet credited | 4,000 |
| (iii) Cheque issued but not yet presented for payment | 1,000 |
| (iv) Rent collected by the bank as per standing instruction | 500 |
| (v) Interest on overdraft debited by bank | 2,000 |
| (vi) Amount wrongly debited by bank | 300 |
| (vii) Cheque issued on 30th December 2017 dishonoured by the bank | 5,000 |
| (viii) A customer’s cheque deposited in the bank dishonoured by bank not recorded in the cash book | 2,000 |
Prepare bank reconciliation statement from the following data and find out the balance as per cash book as on 31st March, 2018.
| Particulars | ₹ |
| (i) Bank balance as per bank statement | 15,000 |
| (ii) Cheques issued but not yet presented for payment | 2,500 |
| (iii) Bank charges not recorded in the cash book | 250 |
| (iv) Interest charged by bank not recorded in the cash book | 500 |
| (v) Bank paid insurance premium as per standing instruction but not recorded in the cash book | 300 |
| (vi) Cheques deposited but not yet credited | 900 |
From the following particulars of Raja traders, prepare a bank reconciliation statement as on 31st January, 2018.
- Balance as per bank statement ₹ 5,000
- Cheques amounting to ₹ 800 had been recorded in the cash book as having been deposited into the bank on 25th January 2018, but were entered in the bank statement on 2nd February 2018.
- Amount received by bank through NEFT amounting to ₹ 3,000, omitted in the cash book.
- Two cheques issued for ₹ 3,000 and ₹ 2,000 on 29th March 2018. Only the first cheque is presented for payment.
- Insurance premium on motor vehicles for ₹ 1,000 paid by the bank as per standing instruction not recorded in the cash book.
- Credit side of cash book was undercast by ₹ 700
- Subsidy received directly by the bank from the state government amounting to ₹ 10,000, not entered in cash book.
From the following particulars of Simon traders, prepare a bank reconciliation statement as on 31st March, 2018.
- Debit balance as per bank statement ₹ 2,500
- Cheques deposited amounting to ₹ 10,000, not yet credited by bank.
- Payment through net banking for ₹ 2,000, omitted in the cash book
Enumerate the steps to ascertain the correct cash book balance
What is a bank reconciliation statement? Why is it prepared?
Bank balance of ₹ 40,000 showed by the cash book of Atul on December 31, 2016. It was found that three cheques of ₹ 2,000, ₹ 5,000 and ₹ 8,000 deposited during the month of December were not credited in the passbook till January 02, 2017. Two cheques of ₹ 7,000 and ₹ 8,000 issued on December 28 were not presented for payment till January 03, 2017. In addition to it bank had credited ₹ 325 as interest and had debited him with ₹ 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.
On comparing the cash book with passbook of Naman it is found that on March 31, 2014, bank balance of ₹ 40,960 showed by the cash book differs from the bank balance with regard to the following:
(a) Bank charges ₹ 100 on March 31, 2017, are not entered in the cash book.
(b) On March 21, 2017, a debtor paid ₹ 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.
(c) Cheques totaling ₹ 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.
(d) A bill for ₹ 6,900 discounted with the bank is entered in the cash book with recording the discount charge of ₹ 800.
(e) ₹ 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.
(f) No entry has been made in the cash book to record the dishonor on March 15, 2017 of a cheque for ₹ 650 received from Bhanu.
Prepare a reconciliation statement as on March 31, 2017.
From the following particulars prepare a bank reconciliation statement showing the balance as per cash book on December 31, 2016.
(a) Two cheques of ₹ 2,000 and ₹ 5,000 were paid into bank in October, 2016 but were not credited by the bank in the month of December.
(b) A cheque of ₹ 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.
(c) Cheques for ₹ 10,000 were issued into bank in November 2016 but not credited by the bank on December 31, 2016.
(d) Interest on investment ₹ 1,000 collected by bank appeared in the passbook.
Balance as per Passbook was ₹ 50,000.
Balance as per passbook of Mr. Kumar is 3,000.
(a) Cheque paid into bank but not yet cleared
Ram Kumar ₹1,000
Kishore Kumar ₹ 500
(b) Bank Charges ₹ 300
(c) Cheque issued but not presented
Hameed ₹ 2,000
Kapoor ₹ 500
(d) Interest entered in the passbook but not entered in the cash book ₹ 100.
Prepare a bank reconciliation statement.
On 1st January 2017, Rakesh had an overdraft of ₹ 8,000 as showed by his cash book. Cheques amounting to ₹ 2,000 had been paid in by him but were not collected by the bank by January 01, 2017. He issued cheques of ₹ 800 which were not presented to the bank for payment up to that day. There was a debit in his passbook of ₹ 60 for interest and ₹ 100 for bank charges.
Prepare bank reconciliation statement for comparing both the balance.
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 passbook.
- Debited by bank for ₹ 200 on account of interest on overdraft and ₹ 50 on account of charges for collecting bills.
- Cheques drawn but not encashed before December, 31 2017 for ₹ 4,000.
- The bank has collected interest and has credited ₹ 600 in passbook.
- A bill receivable for ₹ 700 previously discounted with the bank had been dishonoured and debited in the passbook.
- Cheques paid into bank but not collected and credited before December 31, 2017 amounted ₹ 6,000.
Overdraft shown by the passbook of Mr. Murli is ₹ 20,000. Prepare bank reconciliation statement on dated March 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.
Correct and rewrite the following statement:
When extracts are given for common period only common items are to be considered.
From the following particulars, prepare a bank reconciliation statement as at March 31, 2017.
- Balance as per cash book ₹ 3,200
- Cheque issued but not presented for payment ₹ 1,800
- Cheque deposited but not collected upto March 31, 2014 ₹ 2,000
- Bank charges debited by bank ₹ 150
From the following particulars, prepare a bank reconciliation statement as at March 31, 2017.
- Balance as per cash book ₹ 3,200.
- Cheque issued but not presented for payment ₹ 1,800 Cheque deposited but not collected up to March 31, 2014 ₹ 2,000.
- Bank charges debited by bank ₹ 150.
From the following particulars, prepare the 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 the Pass Book as ₹ 5,300.
- The cheque deposited ₹ 9,700 collected by the bank was not recorded in the Cash Book.
- The payment side of the Cash Book was undercast by ₹ 100.
- The electricity bill paid by the bank ₹ 6,200, was recorded twice in the 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 the bank, recorded in the Pass Book as ₹ 5,300.
- The cheque deposited ₹ 9,700 collected by the bank was not recorded in the Cash Book.
- The payment side of the Cash Book was undercast by ₹ 100.
- The electricity bill paid by the bank ₹ 6,200, was recorded twice in the Pass Book.
From the following particulars, prepare a bank reconciliation statement as at March 31, 2017.
- Balance as per cash book ₹ 3,200
- Cheque issued but not presented for payment ₹ 1,800
- Cheque deposited but not collected upto March 31, 2014 ₹ 2,000
- Bank charges debited by bank ₹ 150
From the following particulars, prepare a bank reconciliation statement as at March 31, 2017.
- Balance as per cash book ₹ 3,200
- Cheque issued but not presented for payment ₹ 1,800
- Cheque deposited but not collected upto March 31, 2014 ₹ 2,000
- Bank charges debited by bank ₹ 150
From the following particulars, prepare a bank reconciliation statement as at March 31, 2017.
- Balance as per cash book ₹ 3,200 .
- Cheque issued but not presented for payment ₹ 1,800.
- Cheque deposited but not collected upto March 31, 2014 ₹ 2,000.
- Bank charges debited by bank ₹ 150.
From the following particulars, prepare a bank reconciliation statement as at March 31, 2017.
- Balance as per cash book ₹ 3,200.
- Cheque issued but not presented for payment ₹ 1,800.
- Cheque deposited but not collected upto March 31, 2014 ₹ 2,000.
- Bank charges debited by bank ₹ 150.
Rectify the following errors:
- Credit sales to Mohan Rs 7,000 were not recorded.
- Credit purchases from Rohan Rs 9,000 were not recorded.
- Goods returned to Rakesh Rs 4,000 were not recorded.
- Goods returned from Mahesh Rs 1,000 were not recorded.
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 a bank reconciliation statement as at March 31, 2017.
- Balance as per cash book ₹ 3,200.
- Cheque issued but not presented for payment ₹ 1,800.
- Cheque deposited but not collected upto March 31, 2014 ₹ 2,000.
- Bank charges debited by bank ₹ 150.
From the following particulars, prepare a bank reconciliation statement as at March 31, 2017.
- Balance as per cash book ₹3,200.
- Cheque issued but not presented for payment ₹1,800.
- Cheque deposited but not collected upto March 31, 2014 ₹2,000.
- Bank charges debited by bank ₹150.
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 a bank reconciliation statement as at March 31, 2017.
- Balance as per cash book ₹ 3,200.
- Cheque issued but not presented for payment ₹ 1,800.
- Cheque deposited but not collected upto March 31, 2014 ₹ 2,000.
- Bank charges debited by bank ₹ 150.
