BANK RECONCILIATION STATEMENT

Question 1:

Rim Zim Ltd. maintains a current account with the State Bank of India. On 31st March, 2024, the bank
column of its cash book showed a debit balance of ₹ 1,54,300. However, the bank statement
showed a different balance as on that date. The following were the reasons for the difference :

₹

Cheques deposited, but not yet credited by the

(i) 75,450
bank

(ii) Cheques issued, but not yet presented for payment 80,760

(iii) Bank charges not yet recorded in the cash book 1,135

Cheques received by the bank directly from trade

(iv) 1,35,200
debtors

Insurance premium paid by the bank as per standing

(v) 15,400
instructions, but not yet recorded in the cash book

Dividend collected by the bank, but not yet

(vi) 1,000
recorded in the cash book

Find out the balance as per the bank statement as on 31st March, 2024.

2. . From the following particulars, prepare a bank reconciliation statement as of March 31, 2017.

(i) Balance as per cash book ₹ 3,200

(ii) Cheque issued but not presented for payment ₹ 1,800

(iii) Cheque deposited but not collected up to March 31, 2017 ₹ 2,000

(iv) Bank charges debited by bank ₹ 150

3.The cash book shows a bank balance of ₹ 7,800. On comparing the cash book with passbook the
following discrepancies were noted:

(a) Cheque deposited in bank but not credited ₹ 3,000

(b) Cheque issued but not yet present for payment ₹ 1,500

(c) Insurance premium paid by the bank ₹ 2,000

(d) Bank interest credit by the bank ₹ 400

(e) Bank charges ₹ 100

(d) Directly deposited by a customer ₹ 4,000

4. Balance as per the passbook of Mr. Kumar is 3,000.

(a) Cheque paid into bank but not yet cleared

Ram Kumar ₹ 1,000

Kishore Kumar ₹ 500

(b) Bank Charges ₹ 300

(c) Cheque issued but not presented

Hameed ₹ 2,000

Kapoor ₹ 500

(d) Interest entered in the passbook but not entered in the cash book ₹ 100

5.Prepare a bank reconciliation statement.

Bank balance of ₹ 40,000 showed by the cash book of Atul on December 31, 2016. It was found
that three cheques of ₹ 2,000, ₹ 5,000 and ₹ 8,000 deposited during the month of December were
not credited in the passbook till January 02, 2017. Two cheques of ₹ 7,000 and ₹ 8,000 issued on
December 28, were not presented for payment till January 03, 2017. In addition to it bank had
credited Atul for ₹ 325 as interest and had debited him with ₹ 50 as bank charges for which there
were no corresponding entries in the cash book.

Prepare a bank reconciliation statement as on December 31, 2016.

6. Prepare bank reconciliation statement.

(i) Overdraft shown as per cash book on December 31, 2017 ₹ 10,000.

(ii) Bank charges for the above period also debited in the passbook ₹ 100.

(iii) Interest on overdraft for six months ending December 31, 2017 ₹ 380 debited in the passbook.

(iv) Cheques issued but not encashed prior to December 31, 2017 amounted to ₹ 2,150.

(v) Interest on Investment collected by the bank and credited in the passbook ₹ 600.

(vi) Cheques paid into bank but not cleared before December, 31 2017 were ₹ 1,100.

7. Prepare a bank reconciliation statement from the following particulars and show the balance as
per cash book.

(i) Balance as per passbook on December 31, 2017 overdrawn ₹ 20,000.

(ii) Interest on bank overdraft not entered in the cash book ₹ 2,000.

(iii) ₹ 200 insurance premium paid by bank has not been entered in the cash book.

(iv) Cheques drawn in the last week of December, 2017, but not cleared till date for ₹ 3,000 and ₹
3,500.

(v) Cheques deposited into bank on November, 2017, but yet to be credited on dated December
31, 2013 ₹ 6,000.

(vii) Wrongly debited by bank ₹ 500.

MOST IMPORTANT QUESTIONS FOR EXAM
1. On comparing the cash book with the passbook of Naman, it is found that on March 31, 2017,
bank balance of ₹ 40,960 showed by the cash book differs from the bank balance with regard to
the following:

(a) Bank charges ₹ 100 on March 31, 2017, are not entered in the cash book.

(b) On March 21, 2017, a debtor paid ₹ 2,000 into the company’s bank in settlement of his account,
but no entry was made in the cash book of the company in respect of this.

(c) Cheques totaling ₹ 12,980 were issued by the company and duly recorded in the cash book
before March 31, 2017, but had not been presented at the bank for payment until after that date.

(d) A bill for ₹ 6,900 discounted with the bank is entered in the cash book with recording the
discount charge of ₹ 800.

(e) ₹ 3,520 is entered in the cash book as paid into bank on March 31st, 2017, but not credited by
the bank until the following day.

(f) No entry has been made in the cash book to record the dishonour or on March 15, 2017 of a
cheque for ₹ 650 received from Bhanu.

Prepare a reconciliation statement as on March 31, 2017.

2. Prepare bank reconciliation statement as on December 31, 2017. On this day the passbook of
Mr. Himanshu showed a balance of ₹ 7,000.

(a) Cheques of ₹ 1,000 directly deposited by a customer.

(b) The bank has credited Mr. Himanshu for ₹ 700 as interest.

(c) Cheques for ₹ 3,000 were issued during the month of December but of these cheques for ₹
1,000 were not presented during the month of December.

3. From the following particulars prepare a bank reconciliation statement showing the balance as
per cash book on December 31, 2016.

(a) Two cheques of ₹ 2,000 and ₹ 5,000 were paid into bank in October, 2016 but were not credited
by the bank in the month of December.

(b) A cheque of ₹ 800 which was received from a customer was entered in the bank column of the
cash book in December 2016 but was omitted to be banked in December, 2016.

(c) Cheques for ₹ 10,000 were issued into bank in November 2016 but not credited by the bank on
December 31, 2016.

(d) Interest on investment ₹ 1,000 collected by bank appeared in the passbook.

Balance as per Passbook was ₹ 50,000.

4. The passbook of Mr. Mohit current account showed a credit Balance of ₹ 20,000 on dated
December 31, 2016. Prepare a Bank Reconciliation Statement with the following information.

(i) A cheque of ₹ 400 drawn on his saving account has been shown on current account.

(ii) He issued two cheques of ₹ 300 and ₹ 500 on of December 25, but only the 1st cheque was
presented for payment.

(iii) One cheque issued by Mr. Mohit of ₹ 500 on December 25, but it was not presented for
payment whereas it was recorded twice in the cash book.

5. Prepare bank reconciliation statement.

(i) Overdraft shown as per cash book on December 31, 2017 ₹ 10,000.

(ii) Bank charges for the above period also debited in the passbook ₹ 100.

(iii) Interest on overdraft for six months ending December 31, 2017 ₹ 380 debited in the passbook.

(iv) Cheques issued but not encashed prior to December 31, 2017 amounted to ₹ 2,150.

(v) Interest on Investment collected by the bank and credited in the passbook ₹ 600.

(vi) Cheques paid into bank but not cleared before December, 31 2017 were ₹ 1,100.

6. Kumar found that the bank balance shown by his cash book on December 31, 2017 is ₹ 90,600
(Credit) but the passbook shows a difference due to the following reason:

A cheque (post-dated) for ₹ 1,000 has been debited in the bank column of the cash book but not
presented for payment. Also, a cheque for ₹ 8,000 drawn in favour of Manohar has not yet been
presented for payment. Cheques totalling ₹ 1,500 deposited in the bank have not yet been
collected and a cheque for ₹ 5,000 has been dishonoured.

7. On December 31, 2017, the cash book of Mittal Bros. Showed an overdraft of ₹ 6,920. From the
following particulars prepare a Bank Reconciliation Statement and ascertain the balance as per the
passbook.

(1) Debited by bank for ₹ 200 on account of Interest on overdraft and ₹ 50 on account of charges
for collecting bills.

(2) Cheques drawn but not encashed before December, 31 2017 for ₹ 4,000.

(3) The bank has collected interest and has credited ₹ 600 in passbook.

(4) A bill receivable for ₹ 700 previously discounted with the bank had been dishonoured and
debited in the passbook.

(5) Cheques paid into bank but not collected and credited before December 31, 2017 amounted ₹
6,000.