On 31st January 2018 Bank balance as per cash book was ₹40,000 but Pass Book was showing some other balance following were the cause of difference.

On 31st January 2018 Bank balance as per cash book was ₹40,000 but Pass Book was showing some other balance following were the cause of difference.

1. Cheques issued for ₹1,00,000 in January 2018 but cheques of ₹50,000 only presented to Bank for Payment before January 31st 2018.

2. Cheques sent to Bank for collection of ₹2,00,000 out of which cheques of ₹80,000 only credited by Bank In January 2018.

3. Following entries were shown Pass Book in January 2018, but no corresponding entries were made in the Cash Book. 

ⅰ) Payment of ₹6,400 by Bank for electricity Bill by ECS.

ⅱ) Interest credited by Bank ₹12,000.

ⅲ) Bank debited commission ₹1,000 and Bank Charges for₹600.

ⅳ) Direct deposit made by customer ₹1,000 by NEFT to our account. 

Prepare Bank Reconciliation statement as on 31st January, 2018.

Solution：

Bank Reconciliation Statement as on 31st January, 2018.

Particulars	Amount (₹)	Amount (₹)
Bank balance as per Cash Book		40,000
ADD 1.  Cheque issued but half amount is presented for payment in Bank	50,000
2. Interest credited by Bank	12,000
3. Customer direct deposited to Bank account by NEFT	1,000	63,000
LESS 1. cheques sent to bank for collection but cheques of ₹80,000 only collected by bank	1,20,000	1,03,000
2. Payment of electricity bill paid by bank	6,400
3. Bank debited commission and bank charges.	1,600	1,28,000
Bank Balance as Per Pass Book		25,000

Calculation：

1. Cheques issued for ₹1,00,000 but cheques of ₹50,000 only presented for payment to Bank.

∴ 1,00,000 - 50,000 = 50,000

2. Cheques sent to Bank for collect5on of ₹2,00,000 out of which cheques of ₹80,000 were credited by Bank.

∴ 2,00,000 - 80,000 = 1,20,000