Following is the extract of Cash Book (Bank Column only) and Pass Book. Prepare Bank Reconciliation Statement as on 31st Oct. 2018.

Following is the extract of Cash Book (Bank Column only) and Pass Book. Prepare Bank Reconciliation Statement as on 31st Oct. 2018

PRACTICAL PROBLEM

In The Books of _______

Dr. Cash Book (Bank column only) Cr.

Date	Receipts	Amount (₹)	Date	Payments	Amount (₹)
2018  Oct			2018 Oct
01	To Balance b/d	10,000	07	By Tejas	✘12,000
05	To Aparna	✘5,000	10	By Anil	✔3,000
08	To Apoorva	✔3,000	15	By Bank charges	✘200
12	To Omkar	✘3,000	17	By Advertisement	✘2,000
20	To Sunil	4,000	20	By Drawings	✔1,000
			31	By Balance c/d	✘9,800
		28,000			28,000

    

Dr. Pass Book Cr.

Date	Payments	Amount (₹)	Date	Receipts	Amount (₹)
2018  Oct.			2018 Oct.
07	To Interest	✘500	01	By Balance b/d	10,000
10	To Insurance premium	✘2,000	10	By Apoorva	✔6,000
13	To Anil	✔3,000	22	By Sunil	✔4,000
20	To Telephone bill	✘2,000	24	By Raju	✘2,000
20	To Drawings	✔1,000	27	By Swanand	✘3,000
31	To Balance c/d	16,500
		25,000			25,000

 

Solution:  

On comparing the Cash Book Balance with Pass Book Balance we can be identified that items appearing in both the Books are given as (✔) tick mark. These marks items do not create any different in the balance and are to be ignored. But, items that are appearing in any on the Books only is given (✘) 'Cross Marked', these items are creating difference in the Balance of the Books. 

 

1) Cheque received from Aparna ₹5,000 and omkar ₹3,000 is deposited into the book for collection but not yet collected by Bank.  

2) Cheque received by bank of Mr. Raju ₹2,000 and Mr. Raju ₹2,000 and Mr. Swanand of ₹3,000 but not yet appear in the Cash Book.  

 

Comparing Cash Book Credit side (Payment) with the Debit side (Payment) of Pass Book it is found that:- 

1) Cheque ₹12,000 issued to Tejas has not been presented for payment. 

 

2) Paid Bank charges ₹200 for which no entry has been pass in the Pass Book. 

 

3) Bank has paid interest of ₹500 which has not recorded in Cash Book. 

 

4) Bank has paid insurance premium ₹2,000 for which no entry has been pass in Cash Book.  

 

5) Paid for Advertisement ₹2,000 but not appeared in pass book. 

 

Comparing cash Book debit side (Receipt) with the credit side ( Receipt) of Pass Book it is found that:- 

 

i)  Balance as per Cash Book: 

   Bank Reconciliation Statement 

As on 31st Oct. 2018 

 

Particulars	Amount ₹	Amount ₹
Balance as per Cash Book		9,800
ADD: 1.  Cheque issued but not presented for payment of Tejas	12,000
2.  Paid Bank Charges but not appear in Pass Book	2,00
3.  Paid for Advertisement but not appear in Pass Book	2,000
4. Cheque received by bank Raju ₹2,000    Swanand ₹3,000	5,000	19,200
Less: 1.  Cheque deposited but not yet collected Aparna ₹5,000           Omkar  ₹3,000	8,000	29,000
2.  Insurance premium paid by bank does not appear in cash book	2,000
3.  Paid Telephone bill by bank	2,000
4.  interest paid by bank but not recorded in cash book	500	12,500
Bank balance as per Pass Book		16,500

 
ii) When balance as per Pass Book is given:  

 
 

Bank Reconciliation Statement  

As on 31st Oct. 2018 

Particulars	Amount₹	Amount₹
Balance as per Pass Book		16,500
ADD: 1.  Cheque deposited but not yet collected                       Aparna  ₹5,000                    Omkar   ₹3,000	8,000
2.  Insurance premium aid by bank                               appears in pass Book	2,000
3.  Telephone Bill paid by Bank	2,000
4.  Interest paid by bank but not recorded in cash book	500	12,500
LESS: 1.  Cheque issued but not presented for payment of Tejas	12,000
2.  Paid Bank Charges but not appear in Pass Book	200
3.  Paid for Advertisement but not appear in Pass Book	2,000
4. Cheque received by bank                 Raju          ₹2,000                    Swanand   ₹3,000	5,000	19,200
Bank Balance as per Pass Book		9,800