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Question
Prepare bank reconciliation statement as on December 31, 2017. This day the passbook of Mr. Himanshu showed a balance of ₹ 7,000.
- Cheques of ₹ 1,000 directly deposited by a customer.
- The bank has credited Mr. Himanshu for ₹ 700 as interest.
- Cheques for ₹ 3,000 were issued during the month of
December but of these cheques for ₹ 1,000 were not presented during the month of December.
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Solution
| Bank Reconciliation Statement of Mr. Himanshu as on December 31, 2017 |
|||
| S. No. | Particulars | (+) Amount ₹ |
(-) Amount ₹ |
| Balance as per the Passbook | 7,000 | ||
| (a) | Cheques directly deposited by a customer | 1,000 | |
| (b) | Bank allowed interest | 700 | |
| (c) | Cheques issued but not presented for payment in December | 1,000 | |
| 2,700 | |||
| Balance as per the Cashbook (7,000 - 2,700) | 4,300 | ||
| 7,000 | 7,000 | ||
Note: As per the NCERT book the answer is ₹ 3,300. However, the correct answer is ₹ 4,300.
RELATED QUESTIONS
Select the most appropriate alternative from those given and rewrite the following statement:
Debiting an entry in Cash Book ___________ cash balance.
Adjusting the cash book before preparing the bank reconciliation statement is compulsory.
From the following information, prepare bank reconciliation statement to find out the bank statement balance as on 31st December, 2017.
| Particulars | ₹ |
| 1. Balance as per cash book | 15,000 |
| 2. Cheques deposited but not yet credited | 1,000 |
| 3. Cheques issued and entered in the cash book before 31st December 2017 but not presented for payment until that date | 1,500 |
| 4. Dividend directly received by bank | 200 |
| 5. Direct payment made by bank for rent | 1,000 |
| 6. Locker rent charged by the bank not recorded in cash book | 1,200 |
| 7. Wrong debit given by the bank on 30th December 2017 | 500 |
| 8. A payment made through net banking has been entered twice in the cash book | 300 |
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
From the following particulars, ascertain the cash book balance as on 31st December, 2016.
- Overdraft balance as per bank statement ₹ 1,26,640
- Interest on overdraft entered in the bank statement, but not yet recorded in cash book ₹ 3,200
- Bank charges entered in bank statement, but not found in cash book ₹ 600
- Cheques issued, but not yet presented for payment ₹ 23,360
- Cheques deposited into the bank but not yet credited ₹ 43,400
- Interest on investment collected by the bank ₹ 24,000
Prepare bank reconciliation statement as on 31st March, 2017 from the following extracts of cash book and bank statement.
| Dr. | Cash book (Bank column only) | Cr. | |||
| Date | Receipts | Amount ₹ | Date | Payments | Amount ₹ |
| 2017 March |
2017 March |
||||
| 1 | To Balance b/d | 9,000 | 4 | By Drawings | 1,700 |
| 3 | To Ram | 2,200 | 8 | By Sumi | 3,300 |
| 9 | To Prem | 1,500 | 12 | By Salary | 2,800 |
| 16 | To Pavithra | 3,400 | 16 | By Kayal | 1,700 |
| 23 | To Devi | 2,600 | 18 | By Pooja | 4,200 |
| 27 | To Mani | 1,100 | 26 | By Sam | 2,000 |
| 30 | To Shankar | 350 | 28 | By Raheem | 1,100 |
| 30 | By Rent | 1,100 | |||
| 30 | By Balance c/d | 2,250 | |||
| 20,150 | 20,150 | ||||
| Date | Particulars | Dr. Withdrawals ₹ |
Cr. Deposits ₹ |
Balance Dr./Cr. |
| 2017 March |
||||
| 1 | By balance b/d | 9,000 Cr. | ||
| 4 | To cheque- drawings | 8,300 Cr. | ||
| 5 | By cheque- Ram | 700 | 2,200 | 10,500 Cr. |
| 9 | To cheque – Sumi | 7,200 Cr. | ||
| 11 | By cheque- Prem | 3,500 | 1,500 | 8,700 Cr. |
| 12 | To cheque – Salary | 5,900 Cr. | ||
| 17 | To cheque – Kayal | 2,800 | 4,200 Cr. | |
| 20 | By cheque- Devi | 1,700 | 2,600 | 6,800 Cr. |
| 30 | By interest received | 900 | 7,700 Cr. | |
| 30 | To bank charges | 15 | 7,685 Cr. |
Briefly explain the term favourable balance as per cash book
Enumerate the steps to ascertain the correct cash book balance
Explain the process of preparing bank reconciliation statement with amended cash balance
From the following particulars, prepare a, bank reconciliation statement as at March 31, 2017.
(i) Balance as per cash book ₹ 3,200.
(ii) Cheque issued but not presented for payment ₹ 1,800.
(iii) Cheque deposited but not collected upto March 31, 2017 ₹ 2,000.
(iv) Bank charges debited by bank ₹ 150.
On March 31 2017 the cash book showed a balance of ₹ 3,700 as cash at bank, but the bank passbook made up to same date showed that cheques for ₹ 700, ₹ 300 and ₹ 180 respectively had not presented for payment, Also, cheque amounting to ₹ 1,200 deposited into the account had not been credited. Prepare a bank reconciliation statement
The cash book shows a bank balance of ₹ 7,800. On comparing the cash book with passbook the following discrepancies were noted:
- Cheque deposited in bank but not credited ₹ 3,000.
- Cheque issued but not yet present for payment ₹ 1,500.
- Insurance premium paid by the bank ₹ 2,000.
- Bank interest credit by the bank ₹ 400.
- Bank charges ₹ 100.
- Directly deposited by a customer ₹ 4,000.
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.
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.
Prepare bank reconciliation statement.
(i) Overdraft shown as per cash book on December 31, 2017 ₹ 10,000.
(ii) Bank charges for the above period also debited in the passbook ₹ 100.
(iii) Interest on overdraft for six months ending December 31, 2017 ₹ 380 debited in the passbook.
(iv) Cheques issued but not encashed prior to December 31, 2017 amounted to ₹ 2,150.
(v) Interest on Investment collected by the bank and credited in the passbook ₹ 600.
(vi) Cheques paid into bank but not cleared before December, 31 2017 were ₹ 1,100.
Kumar find that the bank balance shown by his cash book on December 31, 2017 is ₹ 90,600 (Credit) but the passbook shows a difference due to the following reason:
A cheque (post-dated) for ₹ 1,000 has been debited in the bank column of the cash book but not presented for payment. Also, a cheque for ₹ 8,000 drawn in favour of Manohar has not yet been presented for payment. Cheques totaling ₹ 1,500 deposited in the bank have not yet been collected and cheque for ₹ 5,000 has been dishonored
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.
Prepare a bank reconciliation statement from the following particulars and show the balance as per cash book.
(i) Balance as per passbook on March 31, 2017 overdrawn ₹ 20,000.
(ii) Interest on bank overdraft not entered in the cash book ₹ 2,000.
(iii) ₹ 200 insurance premium paid by bank has not been entered in the cash book.
(iv) Cheques drawn in the last week of March, 2017, but not cleared till date for ₹ 3,000 and ₹ 3,500.
(v) Cheques deposited into bank on February, 2017, but yet to be credited on dated March 31, 2017 ₹ 6,000.
(vi) Wrongly debited by bank ₹ 500.
The passbook of Mr. Randhir showed an overdraft of ₹ 40,950 on March 31, 2017.
Prepare bank reconciliation statement on March 31, 2017.
(i) Out of cheques amounting to ₹ 8,000 drawn by Mr. Randhir on March 27, a cheque for ₹ 3,000 was encashed on April 2017.
(ii) Credited by bank with ₹ 3,800 for interest collected by them, but the amount is not entered in the cash book.
(iii) ₹ 10,900 paid in by Mr. Randhir in cash and by cheques on March, 31 cheques amounting to ₹ 3,800 were collected on April, 07.
(iv) A Cheque of ₹ 780 credited in the passbook on March 28 being dishonoured is debited again in the passbook on April 01, 2017. There was no entry in the cash book about the dishonour of the cheque until April 15.
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 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.
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 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.
