Page 263 - DMGT104_FINANCIAL_ACCOUNTING

Unit 11: Bank Reconciliation Statement

(f) A cheque of 4,000 was deposited in the bank and found credited before March 31, Notes
2007 but omitted to record in the cash book.
(g) A cheque of 5,000 received from customer and debited to the bank column of the
cash book, but not sent to the bank.
(h) A wrong debit of 500 was found in the bank column of the cash book
(i) A wrong debit of 2,000 was found in the pass book.

(j) Bank charges 100 found debited in the pass book.
(k) A draft of 5,000 has been sent to the Supplier of Machine and credited to cash book
(bank column) but an additional debit of 50 was made in the bank for charges.

(l) Bills payable 10,000 was paid by the bank at a discount of 2%, but the full credit was
given to the bank account in the cash book.
(m) Direct payments made by customers into the bank amounted to 8,000, but
intimation was given to the business in the first week of April.
Solution:
Bank Reconciliation Statement as on March 31, 2007.

Bank balance as per Pass Book 9,800
Add: Cheque deposited but not yet credited by the bank 5,000
Cheque deposited dishonoured debited in the pass book 2,000
but not entered in the cash book
Cheque received but not sent to bank 5,000
Wrong debit in the cash book 500
Wrong debit in the pass book 2,000
Bank charges debited only in the pass book 100
Discount charges are entered only in the pass book 200 14,800
Less: Cheque issued but not presented for payment 7,000
Cheque issued dishonoured entered in the pass book but 3,000
not entered in the cash book
Cheque deposited and entered in the pass book but not 4,000
entered in the cash book
Bank charges debited only in the pass book 50
Direct payments entered in the pass book but not entered 8,000 (22,050)
in the cash book
Bank balance as per Cash Book 2,550
Notes:
Pass book credit balance is given and cash book Pass Book Cash Book Adjustment to
balance is to be found Cr. (1) Dr. (2) be made. (2–1)
Let us assume initially bank balance was same in 20,000 20,000
cash book and pass book
Effect of each reason on these balances
(b) 20,000 25,000 Add 5,000
(c) 20,000 13,000 Deduct 7,000
(d) 20,000 22,000 Add 2,000
(e) 20,000 17,000 Deduct 3,000

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