Answer in one sentence: Why is Bank Reconciliation Statement prepared? - Book Keeping and Accountancy

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Answer in one sentence:

Why is the Bank Reconciliation Statement prepared?

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Solution

Bank Reconciliation Statement is prepared to explain the causes of disagreement between the balances shown by the cash book under the bank column and the balance shown in the pass book.

Concept: Bank Reconciliation Statement
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Chapter 6: Bank Reconciliation Statement - Exercises [Page 204]

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Balbharati Book-keeping and Accountancy 11th Standard HSC Maharashtra State Board
Chapter 6 Bank Reconciliation Statement
Exercises | Q 1. 10. | Page 204

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While preparing Bank Reconciliation Statement only __________ column of Cash Book is considered.


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 Correct and rewrite the following statement:

Bank Reconciliation Statement is prepared by Bank.


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:

  1. Cheques paid into the bank but not credited before 31st Aug 2018 amounted to ₹ 24,500.
  2. Direct deposit by the customer through NEFT ₹ 33,000 recorded in the passbook only.
  3. Cheques issued on 28th Aug 2018 were presented for payment on 5th Sep. 2018 amounted to ₹ 38,800.
  4. 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.
  5. Passbook credit side was overcast ₹ 2,000.
  6. 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.


From the following details prepare Bank Reconciliation Statement as of 31st Dec. 2018.

1. Bank overdraft as per Cash Book on 31st Dec. 2018 was ₹ 48,450.

2. Bank charges for SMS alerts ₹ 370 were debited in passbook but not recorded in Cash Book.

3. Interest in overdraft ₹ 2,870 did not appear in Cash Book.

4. A bill for ₹ 12,000 discounted with bank appears in Cash Book at the full amount but the bank has deducted ₹ 200 discounting charges.

5. Cheques issued but not presented for payment before 31st Dec. 2018 amounted to ₹ 32,300.

6. Cheques amounting to ₹ 24,000 were deposited into the bank but only a cheque of ₹ 8,000 was collected by the bank before 31st Dec. 2018.

7. Paid stationary bill ₹ 11,300 by debit card. It was not recorded in Cash Book.


From the following particulars prepare Bank Reconciliation Statement as of 30th June 2019.

  1. Credit balance as per pass book ₹ 20,000.
  2. A cheque for ₹ 3,500 was issued and paid by the bank, recorded in Pass Book as ₹ 5,300.
  3. Cheque deposited ₹ 9,700 collected by the bank was not recorded in Cash Book.
  4. Payment side of the Cash Book was undercast by ₹ 100.
  5. Electricity bill paid by bank ₹ 6,200 was recorded twice in Pass Book.

Prepare Bank Reconciliation Statement from the following information as of 31st March 2019.

1. Balance as per Cash Book ₹ 10,000.

2. Cheque of ₹ 2,000 issued but not presented to Bank for payment.

3. Our debtor directly deposited ₹ 3,500 to our Bank account by NEFT, not recorded in the Cash Book.

4. Bank paid electricity bill on our behalf ₹ 450 and charged Bank charges ₹ 100.

5. Paid ₹ 1,500 to ABC & company, our supplier by business debit card but recorded in Cash Book as ₹ 150.

6. Bank credited interest on Investment ₹ 500.

7. Cheque of ₹ 885 issued and presented to Bank but wrongly entered in the Pass Book as ₹ 865.


From the following particulars prepare Bank Reconciliation Statement as on 30th June 2019.

  1. Credit balance as per Pass Book ₹ 20,000
  2. A cheque for ₹ 3,500 was issued and paid by bank, recorded in Pass Book as ₹ 5,300.
  3. Cheque deposited ₹ 9,700 collected by bank was not recorded in Cash Book
  4. Payment side of Cash Book was undercast by ₹ 100.
  5. Electricity bill paid by bank ₹ 6,200 was recorded twice in Pass Book

From the following particulars prepare the Bank Reconciliation Statement as on 30th June 2019.

1. Credit balance as per Pass Book ₹ 20,000.

2. A cheque for ₹ 3,500 was issued and paid by bank, recorded in the Pass Book as ₹ 5,300.

3. cheque deposited ₹ 9,700 collected by the bank was not recorded in Cash Book.

4. The payment side of Cash Book was undercast by ₹ 100. 5. The electricity bill paid by the bank ₹ 6,200 was recorded twice in the Pass Book.


From the following particulars prepare the Bank Reconciliation Statement as on 30th June 2019.

  1. Credit balance as per Pass Book ₹ 20,000.
  2. A cheque for ₹ 3,500 was issued and paid by the bank, recorded in the Pass Book as ₹ 5,300.
  3. Cheque deposited ₹ 9,700 collected by the bank was not recorded in the Cash Book.
  4. The payment side of Cash Book was undercast by ₹ 100.
  5. 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.

  1. Credit balance as per Pass Book ₹ 20,000.
  2. A cheque for ₹ 3,500 was issued and paid by bank, recorded in Pass Book as ₹ 5,300.
  3. Cheque deposited ₹ 9,700 collected by bank was not recorded in Cash Book.
  4. Payment side of Cash Book was undercast by ₹ 100.
  5. Electricity bill paid by bank ₹ 6,200 was recorded twice in Pass Book.

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