Page 103 - ISCDEBK-XI

Bank Reconciliation Statement 14.7

(vi) Interest debited by the bank but not recorded in the Cash Book ` 1,000.
(vii) Bank charges not recorded in the Cash Book ` 340.
From the above information, prepare Bank Reconciliation Statement to ascertain the balance
as per the Bank Statement.
Solution: BANK RECONCILIATION STATEMENT as on 31st March, 2022
Particulars Plus Items Minus Items
` `
Bank Overdraft as per Cash Book (Cr.) 7,640
Cheques deposited but not credited 10,000
Interest on securities collected by the bank but not recorded in the Cash Book 1,080
Credit transfer not recorded in the Cash Book 200
Dividend collected by the bank directly but not recorded in the Cash Book 1,000
Cheques issued but not presented for payment 37,400
Interest debited by the bank but not recorded in the Cash Book 1,000
Bank charges not recorded in Cash Book 340
Bank Balance as per Bank Pass Book (Cr.) (` 39,680 – ` 18,980) 20,700
39,680 39,680

Illustration 6.
On 31st March, 2022, the Cash Book of a merchant showed a debit balance of ` 8,500. On
comparing the Cash Book with the Bank Pass Book, the following discrepancies were identified:
(a) Cheques issued for ` 6,000 were not presented at bank by 31st March, 2022.
(b) Cheques for ` 8,000 were deposited in bank but were not cleared.
(c) ` 20,000 being the proceeds of a Bill Receivable collected appear in the Bank Pass Book
but not in the Cash Book.
(d) A cheque for ` 1,000 received from X & Co. and deposited in Bank was dishonoured. No
advice of non-payment was received from bank till the 1st of next April, 2022.
(e) The bank has paid a Bill Payable amounting to ` 4,500 but it has not been entered in the
Cash Book.
(f) A Bill Receivable for ` 8,000 which was discounted with the bank was due this month. It
was dishonoured by the drawee on due date.
(g) A cheque for ` 5,100 was paid into bank but the bank credited the amount with ` 5,010
by mistake.
(h) A cheque for ` 500 was deposited into bank but the same was credited to a wrong account.
(i) ` 2,000 was deposited by a customer direct into bank.
(j) The bank received interest on debentures on behalf of the trader the amount being ` 2,500.
(k) A cheque for ` 1,500 received from a customer deposited into bank but the same was not
entered into the Cash Book.
(l) The bank paid Insurance Premium of ` 1,250.
(m) The bank charged ` 90 as their commission for collecting outstation cheques and allowed
interest of ` 100 on the trader’s balance.
(n) A cheque for ` 250 entered into the Cash Book was omitted to be banked.
Prepare a Bank Reconciliation Statement and show the balance as per Bank Pass Book.