Bank reconciliation statement

BANKA Bank is a financial intermediary and money creator that creates money by lending money to a borrower, thereby creating a corresponding deposit on the bank's balance sheet.

The cash books are simple accounting books that are used to enter basic data about cash payments and receipts.

CASH BOOK & PASS BOOK

CASH BOOK & PASS BOOK FORMAT

BALANCING OF CASH BOOK AND PASS BOOK

Balance

NOT BALANCING OF CASH BOOK AND PASS BOOK

Bank Reconciliation Statement FORMAT

PARTICULARS AMOUNTS AMOUNTS

Balance as per Cash Book 200

Bank Reconciliation Statement as on Dec 31, 2003

Example sum of BRS , Pg. no.206

PARTICULARS AMOUNTS AMOUNTS

Balance as per Cash Book LESS: Cheques deposited but not credited by the bank 1,500

200

Bank Reconciliation Statement as on Dec 31, 2003

CASH BOOK PASS BOOK

100 100

(+) 1500 -

1600 100≠(-)

1. Cheques deposited but not yet collected by the bank Rs. 1,500

PARTICULARS AMOUNTS AMOUNTS

Balance as per Cash Book ADD: Cheques issued to Mr.Raju but not presented for payment 2,500

2,500

200

Bank Reconciliation Statement as on Dec 31, 2003

CASH BOOK PASS BOOK

3000 3000

(-)2500 -

500 3000(+)

≠

2. Cheque issued to Mr.Raju has not yet been presentedfor payment Rs. 2,500

PARTICULARS AMOUNTS AMOUNTS

Balance as per Cash Book LESS: Bank charges as per pass book 200 200

200

Bank Reconciliation Statement as on Dec 31, 2003

CASH BOOK PASS BOOK

500 500

- 200 (-)500 300

(+)≠

3. Bank charges debited in the pass book Rs.200

PARTICULARS AMOUNTS AMOUNTS

Balance as per Cash Book ADD: Interest allowed by the bank 100

200

Bank Reconciliation Statement as on Dec 31, 2003

CASH BOOK PASS BOOK

500 500

- 100 (+)500 600

(-)≠

4. Interest allowed by the bank Rs.100

PARTICULARS AMOUNTS AMOUNTS

Balance as per Cash Book LESS: Insurance premium directly paid by the bank as per standing instructions

500

200

Bank Reconciliation Statement as on Dec 31, 2003

CASH BOOK PASS BOOK

1000 1000

- 500 (-)1000 500

(+)≠

5. Insurance premium directly paid by the bank as perstanding instructions Rs.500

SOLUTION

RECALL

Assignment- go through the example sum

- do the exercise sum 1 & 2

- write any two cases of disagreement between

the balance shown by the cash book & pass Book

THANK YOU