State the methods to prepare a bank reconciliation statement

Banking & FinanceFinance ManagementGrowth & Empowerment

Problem

An enterprise company has an Rs.85700/- as passbook balance and Rs.95800/- as cash book balance as on 31st march 2004.

The transactions are as follows −

  • Cheque issued (personal account) of enterprise debited to firm’s account of Rs.5000/-
  • Cheque deposited and yet to collect by bank of Rs.2500/-
  • Cheque deposited and collected from bank and not recorded in cash books of Rs.4800/-
  • Customer cheque dishonored Rs.2300/-
  • Bank direct payments of Rs.3200/-
  • Cheque issued and yet to present for payments of Rs.8500/-
  • Customer deposited Rs.1500/- into bank
  • Discounted bill is dishonored, when presented on maturity Rs.9500/-
  • Bank charges Rs.250/-
  • Dividends and interest (collection) by bank Rs.2800/-

Solution

The bank reconciliation statement before adjusting cash book balance is as follows−

Method 1

Bank reconciliation statement
As on 31st march, 2004

Items (to be added)Items (to be subtracted)
Pass book (balance)
Cheques wrongly debited (bank account)
Cheques deposited yet to collect
Cheques dishonored
Direct payments (Bank)
Discounted bills dishonored
Bank charges
85700
5000
2500
2300
3200
9500
250

Cheques deposited (yet to recorded in cash book)
Cheque issued (yet to presented for payment)
Direct deposits
Interest and dividends
Balance (cash book)

4800
8500
1500
2800
90850

108450108450

Method 2

Bank reconciliation statement
As on 31st march, 2004

Items (to be added)Items (to be subtracted)
Cheques deposited (yet to recorded in cash book)
Cheque issued (yet to presented for payment)
Direct deposits
4800
8500
1500

Interest and dividends
Balance (cash book)
2800
90850

Pass book (balance)
Cheques wrongly debited (bank account)
Cheques deposited yet to collect
Cheques dishonored
Direct payments (Bank)
Discounted bills dishonored
Bank charges

85700
5000
2500
2300
3200
9500
250

108450108450
raja
Published on 13-Jul-2021 12:16:42
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