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Bank Reconciliation Statement 14.5

(v) Bank paid ` 300 as Chamber of Commerce fee on behalf of D.K. which was not recorded
in the Cash Book.

(vi) Bank charged interest on overdraft ` 800.
(vii) ` 40 for bank charges were recorded two times in the Cash Book and bank expenses of
` 35 were not at all recorded in the Cash Book.

(viii) Payments side of the Cash Book was ` 1,000 short.
(ix) Bank received ` 200 as interest on debentures on behalf of D.K.

Solution: BANK RECONCILIATION STATEMENT
as on 31st March, 2022
Particulars Amount Amount
Details (`) `
Overdraft Balance as per Bank Pass Book (Dr.) 15,000
Add: Cheque deposited into Bank not recorded in Cash Book 200
Cheques issued but not presented for payment (` 17,000 – ` 10,000) 7,000
Bank charges recorded twice in Cash Book 40
Interest received on Debentures credited to account by Bank 200 7,440
22,440
Less: Cheques deposited but not yet credited (` 2,000 + ` 1,000) 3,000
Chamber of Commerce Fee paid by bank not recorded in Cash Book 300
Interest on Overdraft debited by bank 800
Bank Expenses debited by bank 35
Cash Book payments side casted short 1,000 5,135
Overdraft Balance as per Cash Book (Cr.) 17,305

Illustration 4.
My Bank Pass Book for Account No. 1 shows an overdraft of ` 65,000 on 31st March, 2022. This
does not match with the Cash Book balance which shows debit balance of ` 17,800. Following
differences were noted between Bank Pass Book and Cash Book.
Cheques amounting to ` 1,50,000 were paid into the bank in March out of which only
cheques amounting to ` 45,000 were credited by the bank. Cheques issued during March
amounted in all to ` 1,10,000. Out of these, cheques for ` 30,000 were unpaid on 31st
March, 2022. The bank has wrongly debited Account No. 1 with ` 5,000 in respect of a
cheque drawn on Account No. 2. The Account is debited with ` 1,500 for interest and
with ` 300 for bank charges. The bank has paid annual subscription of ` 1,000 to my club
as per standing instructions. The entries for interest, bank charges and subscription have
not yet been recorded in the Cash Book.
Prepare Bank Reconciliation Statement.