Page 98 - ISCDEBK-XI

14.2 Double Entry Book Keeping—ISC XI

(ix) Bills collected by the bank on behalf of customers; and
(x) Errors committed.
• Debit Balance as per Cash Book and Credit Balance as per Bank Pass Book means a favourable balance.
• Credit Balance as per Cash Book and Debit Balance as per Bank Pass Book means an unfavourable balance.
• Amended Cash Book is prepared to record unrecorded entries that have been debited and credited by
the bank and passing rectifying entries for errors in the Cash Book.
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 Bank but not yet collected – + + –
3. Interest allowed by 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 – + + –

• When Favourable Bank Balance as per Cash Book is given:
Add: Those items which increase the Bank Pass Book favourable balance more than the Cash Book
favourable balance.
Deduct: Those items which decrease the Bank Pass Book favourable balance more than the Cash Book
favourable balance.
• When Bank Overdraft as per Cash Book is given:
Add: Those items which increase the Bank Pass Book overdraft more than the Cash Book overdraft.
Deduct: Those items which decrease the Bank Pass Book overdraft more than the Cash Book overdraft.
• When Favourable Bank Balance as per Bank Pass Book is given:
Add: Those items which increase the Cash Book favourable balance more than the Bank Pass Book
favourable balance.
Deduct: Those items which decrease the Cash Book favourable balance more than the Bank Pass Book
favourable balance.
• When Bank Overdraft as per Bank Pass Book is given:
Add: Those items which increase the bank overdraft of the Cash Book more than the Bank Pass Book
overdraft balance.
Deduct: Those items which increase the overdraft of the Cash Book more than the Bank Pass Book
overdraft balance