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.

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4. 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. 

 

Solution: bank reconciliation statement as on December 31, 2016 

 

No.	Particulars	(+) Amount (₹)	(-) Amount (₹)
	Balance as per Cash Book	40,000
1.	Cheques of ₹ 2,000, ₹ 5,000 and ₹ 8,000 deposited and were not recorded in the passbook		15,000
2.	cheques of ₹ 7,000 and ₹ 8,000 issued but were not presented for payment	15,000
3.	bank had credited Atul for ₹ 325 as interest	325
4.	Bank debited charges		50
	Balance as per Pass Book		40,275
		55,325	55,325

 

Explanation: 

1. Cheques of ₹ 2,000, ₹ 5,000 and ₹ 8,000 deposited and were not recorded in the passbook. 

2. cheques of ₹ 7,000 and ₹ 8,000 issued but were not presented for payment 

3. bank had credited Atul for ₹ 325 as interest 

4. Bank debited charges 

A bank reconciliation statement is a statement that explains the differences between the balance shown in the bank statement and the balance shown in the cash book of a company. It is an important document used by companies to ensure that their cash book and bank statement balances are accurate and to identify any errors or discrepancies. Here are the steps to prepare a bank reconciliation statement: Step 1: Enter the balance as per the cash book Enter the balance as per the cash book on the credit side of the bank reconciliation statement. Step 2: Enter the balance as per the bank statement Enter the balance as per the bank statement on the debit side of the bank reconciliation statement. Step 3: Compare the two balances Compare the balance as per the cash book and the balance as per the bank statement. If they are the same, then there is no need to proceed further. Step 4: Identify the items that are in the cash book but not in the bank statement Identify the items that are in the cash book but not in the bank statement. This includes deposits in transit, outstanding checks, and bank charges. Step 5: Adjust the cash book balance Adjust the cash book balance by adding the items that are in the cash book but not in the bank statement. Step 6: Identify the items that are in the bank statement but not in the cash book Identify the items that are in the bank statement but not in the cash book. This includes bank interest, electronic deposits, and bank fees. Step 7: Adjust the bank statement balance Adjust the bank statement balance by adding the items that are in the bank statement but not in the cash book. Step 8: Prepare the final bank reconciliation statement Prepare the final bank reconciliation statement by showing the adjusted balance as per the cash book and the adjusted balance as per the bank statement. If the two balances are the same, then the reconciliation is complete. If there is still a difference between the two balances, then there may be an error or discrepancy that needs to be investigated and corrected. I hope this helps you understand how to prepare a bank reconciliation statement for your class 11th accounts studies.