Page 178 - DCOM101_FINANCIAL_ACCOUNTING_I

Financial Accounting-I

Notes Less:

1. Cheques paid into the bank but not yet cleared Xx
2. Interest and expenses charged by the bank Xx
3. Direct payment by the Bank Xx
4. Dishonor of a bill discounted with the bank Xx (–) xx
Note: If you start the question with balance as per pass book all the adjustments will be
reversed.

13.3.1 Reconcile Pass Book through Check Book

The following examples will help to understand that how to reconcile the pass book while the
balance of cash book is given:

Illustration 1: From the following prepare a bank reconciliation statement on 31 March 2005.
st
1. Balance as per Cash Book 1,80,000
2. Cheques paid into the Bank March 2005 but credited by the bank in April 2005 7,900
3. Cheques issued in March 2005 but cashed in April 2005 11,000
4. Cheques entered in the Cash Book in March 2005 but paid into bank in April 2005 1,000

5. Interest allowed by the bank 2500
6. Interest charged by the bank 500
Solution:

Bank Reconciliation Statement
as on March 31, 2005

Particulars Amount
Balance as per Cash Book 1,80,000
Add: 1. Cheques issued but not cashed 11,000
2. Int. allowed by bank 2,500 13,500
1,93,500
Less: 1. Cheques paid into bank but not yet cleared 7,900
2. Cheques entered into cash book 1,000
3. Interest charged by bank 500 9,400
Balance as per pass book 1,84,100
Illustration 2: From the following particulars of M/s. Ananaya Industries, prepare bank
reconciliation statement as on December 31, 2006.
1. Bank balance as per cash book `32,500.
2. Cheques deposited into bank but not credited upto December 31, 2006 ` 8,900.
3. Cheques issued but not presented for payment ` 12,500.

4. Bank credited `5,000 for receiving dividend through Electronic Clearing System.
5. Bank charges debited by Bank ` 400.

172 LOVELY PROFESSIONAL UNIVERSITY