Question

Explain the process of preparing bank reconciliation statement with amended cash balance.

Answer 1

Bank Reconciliation Statement can be prepared with the adjusted/amended bank column of the Cash Book by the below given steps.

Step 1: Note down the bank balance as per the Cash Book.

Step 2: Rectify all the errors committed in the Cash Book.

Step 3: Enter those transactions in the debit column of the Cash Book that are only in the credit column of the Pass Book.

Step 4: Enter those transactions in the credit column of the Cash Book that are only in the debit column of the Pass Book.

Step 5: After completing the above steps, the balance or the overdraft, as per amended Cash Book, arrives, with which Bank Reconciliation Statement can be prepared.

The performa of Bank Reconciliation Statement through amended balance is given below.

Bank Reconciliation Statement, as on ______
Particulars		Amount Rs (Add)	Amount Rs (Less)
Adjusted balance as per the amended the Cash Book		−
	Add: Cheque issued but not presented.	−
	Less: Cheque deposited but not credit	−	−
Balance as per the Pass Book