On March 31st 2017 the cash book showed a balance of ₹3,700 as cash at bank, but the bank passbook made up to same date showed that cheques for ₹700, ₹300 and ₹180 respectively had not presented for payment, Also cheque amounting to ₹1,200 deposited into the account had not been credited. Prepare bank reconciliation statement

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The BCR NCERT solution provided by Edaccountancy includes a step-by-step guide on how to prepare a BCR, along with examples and practice problems. The solutions are designed to help students understand the concept of BCR and its importance in accounting. 

2. On March 31st 2017 the cash book showed a balance of ₹3,700 as cash at bank, but the bank passbook made up to same date showed that cheques for ₹700, ₹300 and ₹180 respectively had not presented for payment, Also cheque amounting to ₹1,200 deposited into the account had not been credited. Prepare bank reconciliation statement. 

 

Solution: Bank Reconciliation Statement as on 31st March 2017. 

 

No.	Particulars	(+) Amount (₹)	(-) Amount (₹)
	Balance as per Cash Book	3,700
1.	Cheques had not presented for payment for ₹700, ₹300 and ₹180	1,180
2.	Cheque amounting to ₹1,200 deposited into the account had not been credited		1,200
	Balance as per Pass Book		3,680
		4,880	4,880

 

 

Explanation:  

1. Cheques for ₹700, ₹300 and ₹180 respectively had not presented for payment.

In this, Cheques had not presentedin passbook therefore adding all the cheques for reconciliation

2. Cheque amounting to ₹1,200 deposited into the account had not been credited.

Cheque deposited into the account but not credited in passbook therefore ₹1,200 is deducted.

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.