Page 100 - ISCDEBK-XI

14.4 Double Entry Book Keeping—ISC XI

(iv) Bank has debited ` 5,000 on account of interest on overdraft and ` 1,000 as bank charges.
(v) Bank has credited ` 7,000 to the account being dividends on shares.
(vi) Bill Receivable of ` 10,000 (discounted with the bank in February) dishonoured on
31st March (but not yet recorded in the Cash Book).
Solution:
BANK RECONCILIATION STATEMENT
as on 31st March, 2022
Particulars Amount Amount
Details (`) `
Overdraft Balance as per Cash Book (Cr.) 20,000
Less: Cheques issued but not yet presented for payment 70,000
Dividend collected and credited by Bank 7,000 (77,000)
(57,000)
Add: Cheques deposited but not yet collected 35,000
Interest debited by Bank not recorded in Cash Book 5,000
Bank charges debited by Bank not recorded in Cash Book 1,000
Discounted Bill Receivable dishonoured not recorded in Cash Book 10,000 51,000
Balance as per Bank Pass Book (Cr.) (6,000)

The above solution can also be presented with two columns using ‘Plus’ and ’Minus’ method.
BANK RECONCILIATION STATEMENT
as on 31st March, 2022
Particulars Plus Minus
Items Items
` `

Overdraft as per Cash Book (Cr.) 20,000
Cheques drawn but not presented for payment till 31st March 70,000
Dividend collected and credited by the Bank 7,000
Cheques deposited but not collected till 31st March 35,000
Interest on overdraft and bank charges debited by Bank 6,000
Discounted bill receivable dishonoured 10,000
Balance as per Bank Pass Book (Cr.) (` 77,000 – ` 71,000) 6,000
77,000 77,000

Illustration 3.
From the following particulars, prepare Bank Reconciliation Statement and ascertain the
balance as per Cash Book on 31st March, 2022 in the books of D.K.:
(i) Bank Pass Book showed an overdraft of ` 15,000 on 31st March, 2022.
(ii) A cheque of ` 200 was deposited in the bank but not recorded in the Cash Book.
(iii) Cheques of ` 17,000 were issued but cheques amounting to ` 10,000 were presented for
payment up to 31st March, 2022.
(iv) Cheques of ` 10,000 were sent to the bank for collection. Out of these, cheques of
` 2,000 and of ` 1,000 were credited respectively on 7th April and 9th April, 2022 and
remaining cheques were credited before 31st March, 2022.