From the following particulars prepare a bank reconciliation statement showing the balance as per cash book on December 31, 2016. 1) 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. 2) 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. 3) Cheques for ₹ 10,000 were issued into bank in November 2016 but not debited by the bank on December 31, 2016. 4) Interest on investment ₹ 1,000 collected by bank appeared in the passbook. Balance as per Passbook was ₹ 50,000

 7. From the following particulars prepare a bank reconciliation statement showing the balance as per cash book on December 31, 2016.

 

1) 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. 

2) 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. 

3) Cheques for ₹ 10,000 were issued into bank in November 2016 but not debited by the bank on December 31, 2016. 

4) Interest on investment ₹ 1,000 collected by bank appeared in the passbook. 
  
Balance as per Passbook was ₹ 50,000 
 

Solution: Bank Reconciliation Statement as on December 31, 2016 

 

No.	Particulars	(+) Amount (₹)	(-) Amount (₹)
	Balance as per Pass Book	50,000
1.	cheques of ₹ 2,000 and ₹ 5,000 were paid into bank but were not credited by the bank	7,000
2.	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	800
3.	Cheques for ₹ 10,000 were issued into bank		10,000
4.	Interest on investment ₹ 1,000 collected by bank but not debited by the bank		1,000
	Balance as per Cash Book		46,800
		57,800	57,800

A bank reconciliation statement is a statement that explains the differences between the balance shown in the bank statement and the balance shown in the cash book of a company. It is an important document used by companies to ensure that their cash book and bank statement balances are accurate and to identify any errors or discrepancies.

Here are the steps to prepare a bank reconciliation statement:

Step 1: Enter the balance as per the cash book

Enter the balance as per the cash book on the credit side of the bank reconciliation statement.

Step 2: Enter the balance as per the bank statement

Enter the balance as per the bank statement on the debit side of the bank reconciliation statement.

Step 3: Compare the two balances

Compare the balance as per the cash book and the balance as per the bank statement. If they are the same, then there is no need to proceed further.

Step 4: Identify the items that are in the cash book but not in the bank statement

Identify the items that are in the cash book but not in the bank statement. This includes deposits in transit, outstanding checks, and bank charges.

Step 5: Adjust the cash book balance

Adjust the cash book balance by adding the items that are in the cash book but not in the bank statement.

Step 6: Identify the items that are in the bank statement but not in the cash book

Identify the items that are in the bank statement but not in the cash book. This includes bank interest, electronic deposits, and bank fees.

Step 7: Adjust the bank statement balance

Adjust the bank statement balance by adding the items that are in the bank statement but not in the cash book.

Step 8: Prepare the final bank reconciliation statement

Prepare the final bank reconciliation statement by showing the adjusted balance as per the cash book and the adjusted balance as per the bank statement. If the two balances are the same, then the reconciliation is complete. If there is still a difference between the two balances, then there may be an error or discrepancy that needs to be investigated and corrected.

I hope this helps you understand how to prepare a bank reconciliation statement for your class 11th accounts studies.