Question

From the following particulars, ascertain the bank balance as per the Pass Book as on 31st December.
1. The Bank balance as per Cash Book on the date was Rs.11500.
2. Check issued but not cashed before the date amounted to Rs.1,750
3. Checks paid to bank, but not cleared before December amounted to Rs.2150
4.Interest on Investments collected by the bank but not entered in the cash Book amounted to Rs 275.
5.Local cheque paid in but not entered in cash Book Rs.300.
6.Bank Charges debited in the Pass Book Rs.25.

Answer 1

(a) Without adjustment in cash Book :

Bank Reconciliation Statement

as on 31st December

Bank Balance as per Cash Book Add : Cheques issued not cashed Add : Interest on Investments collected by the Bank but not entered in the cash Book Add : Cheques paid in but not entered in Cash Book	Rs. 1,750 275 300	Rs. 11,500 (+) 2,325
Less : Cheques paid in but not cleared Less : Bank charges not entered in Cash Book	2,150 25	13,825 (-) 2,175
Bank Balance as per Pass Book		11,650

(b) With adjustment in Cash Book :

If the balance at Bank, as per the Cash

Book adjusted, it will be $Rs.12,050$, thus :

Dr. Cash Book (Bank Col.) Cr.

Dec. 31 Dec. 31 Dec. 31	To Balance b/d To Interest on Investment To cheques omitted	Rs. 11,500 275 300	Dec. 31 Dec. 31	By Bank charges By Balance c/d	Rs. 25 12,050
		12,075			12,075

BANK RECONCILIATION STATEMENT will then appear as follows :

Bank Reconciliation Statement

as on 31st December

Bank balance as per Cash Book Add : Cheques issued but not presented	Rs. 1,750	Rs. 12,050 (+) 1,750
Less : Cheques paid in but not collected	2,150	13,800 (-) 2,150
Bank Balance as per Pass Book		11,650