Bank Reconciliation Statement
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Bank Reconciliation Statement Prepared by:- Chahat singla
description
Bank Reconciliation Statement. Prepared by:- Chahat singla . Cash book. Cash book with bank column only. Particulars . Date . Rs . Date. Particulars . Rs . Payments. Receipts. Pass book. Pass book. Receipts. Payments. Defination :-. - PowerPoint PPT Presentation
Transcript of Bank Reconciliation Statement
Bank ReconciliationStatement
Prepared by:-
Chahat singla
Cash book
Particulars Particulars Date DateRs . Rs .
Payments
Receipts
Cash book with bank column only
Pass book
Date ParticularsDr.
Withdrawals
Cr. Deposits
Dr. or Cr.
Balance Initials
Pass book
Defination:-Bank reconciliation
statement is a statement that makes
to reconcile the balances of cash book
and pass book.
BANKBank’s
booksDepositor’s
records
Beginning balance Rs. 10000 Beginning balanceRs. 10000
Cheque deposited but not Cr. By bank Of Rs. 1000
Cheque deposit Rs. 1000
Rs. 11000Rs. 10000 balancebalance
The difference is Of Rs. 1000
Reasons for the difference in the balances of cash book and pass book
1.Cheques deposited but not yet collected
1000
100000
1000
pass book
0
00
0
cash book
1000
+ -- +
A cheque is deposited but not collected by bank of Rs. 1000
e.g.:-
In above example Rs. 1000 more in cash book
1
Entered in pass book
Deposit in bank
Bank
Cheque recieved
process
2.Cheques issued but not yet presented
For payment
A cheque is issued to Ram but not presented for payment of Rs. 1000
e.g.:-
cash book
1000
10000
1000
1000
+ - pass book
1000
100001000
1000
+-
In above example Rs. 1000 less in cash book
3.Bank charges debited by bank only
pass book
1000
100001000
1000
+-cash book
1000
10000
1000
1000
+ -
The bank has debited the pass book with bank charges Rs. 1000
e.g.:-
In above example Rs. 1000 more in cash book
4.Interest credited by bank only
e.g.:-
01000
cash book
0
0
0
+ - pass book
1000
1000
1000
+-
0
The bank has credited the pass book with interest Rs. 1000
In above example Rs. 1000 less in cash book
5.Direct deposit by customers in bank
01000
pass book
1000
1000
1000
+
-cash book
0
0
0
+ -
0
e.g.:-5.Direct deposit by customers in
bank of Rs. 1000
In above example Rs. 1000 less in cash book
6.Direct collections by bank
cash book
0
0
0
+ -
0 01000
pass book
1000
1000
1000
+-
5.Direct collections by bank of Rs. 1000
e.g.:-
In above example Rs. 1000 less in cash book
7. Direct payments by bank
01000
cash book
1000
1000
1000
+ - pass book
1000
1000
1000
+-
10000
5.Direct payments by bank of Rs. 1000
e.g.:-
In above example Rs. 1000 more in cash book
8. Dishonour of cheques
1000
100000
1000
cash book
1000
+ - pass book
0
00
0
- +
A cheque is deposited has been dishonoured by bank of Rs. 1000
e.g.:-
In above example Rs. 1000 more in cash book
9. Retiring a bill under rebate by the bank
The bank retired the bills of Rs. 1000 under a rebate of 100
e.g.:-
01000
cash book
1000
1000
1000
+ - pass book
1000
900100
- +
1000
1000
In above example Rs. 100 less in cash book
10. Errors and omissions in cash book and pass book
01000
cash book
1000
1000
1000
+ - pass book
1000
01000
- +
1000
1000
There is a +ve balance of Rs. 1000 in CB and PB on 1st , Aug but on 3rd
, Aug we write 100 in CB by mistake
e.g.:- error in CB
1st ,Aug 1st ,Aug
pass book
1000
01000
- +
1000
1000
3rd ,Aug
0100
cash book
100
100
100
+ -
3rd ,Aug
There is a +ve balance of Rs. 1000 in CB and PB on 1st , Aug but on 3rd , Aug we omitted to
write in CB by mistake
e.g.:- omission in CB
In above example Rs. 900 less in cash book
s
01000
cash book
1000
1000
1000
+ - pass book
1000
01000
- +
1000
1000
1st ,Aug 1st ,Aug
cash book
0
00
+ -
0
0
3rd ,Aug
pass book
1000
01000
- +
1000
1000
3rd ,Aug
In above example Rs. 1000 less in cash book
Four types of balances :-
1. Favourable cash book
2. Unfavourable cash book
3. Favourable pass book
4. Unfavourable pass book
Example 1: On December 31 1991 the balance of the cash at bank as shown by the cash book of a trader was Rs1,401 On checking
the bank statement with the cash book it was found that a cheque for Rs116 paid in on the 31st December was not credited until the 1st January, 1992 and the following cheques drawn prior to 31 December were not presented at the
bank for payment until the 5th January 1992. Rashid & Sons Rs29, Bashir & Co Rs801, MA Jalil Rs6, Khalid Bros., Rs132.Prepare a statement recording the two balances:
1.When favourable balance of cash book is given
Solution:
PARTICULARS DETAIL AMOUNT
ADD
LESS
Balance as per cash book [dr.]
1401
116Cheque deposit but not cr.
Bank Reconciliation Statement on 31st December 1991
Cheque issued but not dr.RS . ,BC. , MA. , KB. ,
29 801 6
132 968
2369116
2253Balance as per pass book cr.
2.When favourable balance of pass book is givenExample 2:
On December 31 1991 the balance as shown by the bank statement was 2,253.On checking the bank statement with the cash book it was found that a cheque for Rs116 paid in on the 31st December was not credited until the 1st January, 1992 and the following cheques drawn prior to 31 December were not presented at the bank for payment until the 5th January 1992. Rashid & Sons Rs29, Bashir & Co Rs801, MA Jalil Rs6, Khalid Bros., Rs132.Prepare a statement recording the two balances:Solution:
PARTICULARS DETAIL AMOUNT
ADD
LESS
Balance as per pass book [cr.]
2253116Cheque deposit but not cr.
Bank Reconciliation Statement on 31st December 1991
Cheque issued but not dr.
RS . ,BC. , MA. , KB. ,
29 801 6
132 968
116
1401Balance as per cash book dr.
The End
