Page 180 - DCOM101_FINANCIAL_ACCOUNTING_I

Financial Accounting-I

Notes

Task ABC Ltd. maintains a current account with the State Bank of India. As on 31
st
March, 2004, 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
are the reasons for such a difference:
`
1. Cheques deposited but not yet credited by the bank 75,450
2. Cheques issued but not yet presented 80,760
3. Bank charges not yet recorded in the cash book 1,135
4. Cheques received by the bank directly 1,35,200

5. Insurance premium paid by the bank as per standing instructions
not yet intimated 15,400
Find out the balance as per the bank statement.
Hint: Balance as per bank statement: 278275.

13.3.2 Reconcile Check Book through Pass Book

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

Illustration 5: Bank Pass book of M/s. Brahm Industries showed a credit balance of ` 27,350 on
July 31,2006. The following differences were found on that date between the cash book and the
pass book:

1. Cheques issued before July 31,2006, amounting to ` 19,000 had not been presented for
payment.
2. Two cheques of ` 5,000 and ` 3,500 were deposited into bank on July 31, but the bank gives
credit for the same in August.
3. Insurance premium directly paid by the bank ` 5,000.

4. ` 2,000 wrongly debited to the firm’s account by the bank.
Prepare Bank Reconciliation Statement as on July 31, 2006.

Solution:
Bank Reconciliation Statement of M/s. Brahm Industries
as on July 31, 2006
Particulars (Plus) Amount (`) (Minus) Amount (`)
1. Balance as per pass book 27,350
2. Cheques issued but not presented for payment 19,000
3. Cheques deposited but credited for payment 8,500
4. Insurance premium directly paid by the bank 5,000
5. Wrongly debited by the bank. 2,000
Balance as per cash book 23,850
42,850 42,850

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