Question

The following particulars relate to the business of Varun on 31st March 2016

$\begin{array}{ccc}& & \text{Amt (Rs.)}\\ \left(i\right)& \text{Cheques issued but not presented for payment}& 34,500\\ \left(ii\right)& \text{Cheques paid into the bank but not yet collected}& 7,500\\ \left(iii\right)& \text{Interest credited by the bank but not entered in the cash book}& 1,650\\ \left(iv\right)& \text{Bank charges debited in the pass book but not entered in the cash book}& 105\\ \left(v\right)& \text{Credit balance as shown by the pass book}& 1,06,590\\ \left(vi\right)& \text{Debit balance as shown by the cash book}& 78,045\end{array}$

Prepare (a) Statement reconciling the bank balance as per cash book with that shown by the bank as on 31st March, 2016. (b) Statement reconciling the bank balance as per pass book with dept shown by the cash book as on 31st March, 2016.

Answer 1

Bank Reconciliation Statement
as on 31st March. 2016

(a)

$\begin{array}{cccc}& \text{Particulars}& \text{Plus (Rs.)}& \text{Minus (Rs.)}\\ & \text{Debit/Favourable Balance as per Cash Book}& 78,045& \\ \text{Add}& \text{Cheques issued but not presented for payment}& 34,500& \\ & \text{Interest credited in the pass book}& 1,650& \\ \text{Less}& \text{Cheques paid to the bank but not yet cleared}& & 7,500\\ & \text{Bank charges debited in pass book}& & 105\\ & \text{Credit/Favourable Balance as per pass Book}& & 1,06,590\\ & & \underset{–}{\overline{1,14,195}}& \underset{–}{\overline{1,14,195}}\end{array}$

(b)

Bank Reconciliation Statement
as on 31st March. 2016
$\begin{array}{cccc}& \text{Particulars}& \text{Plus (Rs.)}& \text{Minus (Rs.)}\\ & \text{Credit/Favourable Balance as per Pass Book}& 1,06,590& \\ \text{Add}& \text{Cheques paid to the bank but not yet cleared}& 7,500& \\ & \text{Bank charges debited in the pass book}& 105& \\ \text{Less}& \text{Cheques issued but not presented for payment}& & 34,500\\ & \text{Interest credited in the pass book}& & 1,650\\ & \text{Debit/Favourable Balance as per Cash Book}& & 78,045\\ & & \underset{–}{\overline{1,14,195}}& \underset{–}{\overline{1,14,195}}\end{array}$