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 

 

 

 

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