Question

Prepare a Bank Reconciliation Statement from the following particulars as on 31st March 2015:
(i) Cheques were deposited into bank on 25th March for ₹ 20,000. Out of these cheques for ₹ 8,000 were cleared on 4th April, cheques for ₹ 6,000 on 6th April and one cheque for ₹ 1,400 was dishonoured on 7th April.
(ii) Cheques amounting to ₹ 12,000 were issued in March, out of which cheques for ₹ 2,000 were encashed upto 31st March.
(iii) A bill for ₹ 5,000 (discounted with the bank in January) dishonoured on 30th March 2015 and noting charges paid by bank ₹ 50. No information regarding the dishonour was received from the bank in March 2015.
(iv) Cheque issued to a creditor for ₹ 2,000 was through mistake entered in the cash column of the Cash Book. The same has not been presented for payment till today.
(v) Receipt side of the Cash Book (bank column) was undercast by ₹ 100.
(vi) Bank has paid a bill payable amounting to ₹ 2,500 but it has not been entered in the Cash Book.
(vii) A cheque for ₹ 2,000 issued to Mr. X was omitted to be recorded in Cash Book.
(viii) Dr. balance as per Pass Book was ₹ 7,200.

Answer 1

Bank Reconciliation Statement as on March 31, 2015
S. No.	Particulars	Plus Items (Rs)	Minus Items (Rs)
	Debit Balance (Overdraft) as per Pass Book		7,200
	Add: (i) Cheque deposited but not credited (8,000 + 6,000 + 1,400)	15,400
	(iii) Discounted B/R dishonoured, charges paid too	5,050
	(vi) Bills Payable honoured by Bank	2,500
	(vii) Cheque issued but not recorded in Cash Book	2,000
	Less: (ii) Cheque issued but not presented (12,000 – 2,000)		10,000
	(v) Receipt side of Cash Book undercasted		100
	Debit Balance as per Cash Book		7,650
		24,950	24,950

Note: Transaction no. (iv) will have no effect on the bank balance as the issued cheque was recorded in the cash column and was not presented for payment till the date of preparation of Bank Reconciliation Statement.