Page 87 - debkxi

13.2 Double Entry Book Keeping—CBSE XI

• Debit Balance as per Cash Book or Credit Balance as per Pass Book means favourable
balance.
• Credit Balance as per Cash Book or Debit Balance as per Pass Book means unfavourable
balance.
BANK RECONCILIATION STATEMENT—AT A GLANCE
Particulars Cash Book—Starting Balance Pass Book—Starting Balance
Favourable Overdraft Favourable Overdraft
Balance Balance
(Dr. Balance) (Cr. Balance) (Cr. Balance) (Dr. Balance)
1. Cheques issued but not yet presented for payment. + – – +
2. Cheques deposited into the Bank but not yet collected. – + + –
3. Interest allowed by the Bank but not entered in the Cash Book. + – – +
4. Bank charges not entered in the Cash Book. – + + –
5. Direct deposit into the bank by a customer. + – – +
6. Direct payments from the bank not entered in the
Cash Book. – + + –
7. Direct collections made by the bank not entered in the
Cash Book. + – – +
8. Cheque issued and payment received by the creditor
but not entered in the Cash Book. – + + –
9. Cheque paid into the bank but omitted to be entered
in the Cash Book. + – – +
10. Dishonour of a cheque and bill discounted with the bank. – + + –
11. Cheque entered in the Cash Book but not sent to the Bank. – + + –

Difference between Bank Reconciliation Statement and Bank Statement

Basis Bank Reconciliation Statement Bank Statement
1. Who prepares It is prepared by the account holder. It is prepared by the bank.
2. Objective It is prepared to reconcile the difference between It is prepared to inform the customer, i.e., account
Cash Book Balance and Pass Book Balance. holder about all transactions which have taken
place in his account during the period covered by
the statement.
3. When it is prepared It is prepared on a particular date. It is prepared for a particular period.
4. Necessity It is not compulsory. It is compulsory for the bank to prepare it.
5. Final Result It may show the bank balance as per Cash Book It shows the balance of Customer’s Account as per
or Pass Book at the end of the period. bank ledger at the end of the period.

Solved Questions

1. Prepare Bank Reconciliation Statement from the following particulars:
(i) On 31st March, 2024, Cash Book showed a credit bank balance (i.e., bank
overdraft) of ` 20,000.

(ii) Out of the total cheques amounting to ` 1,00,000 drawn, cheques aggregating
` 30,000 were encashed in March, cheques aggregating ` 40,000 were
encashed in April and the rest have not yet been presented.