Question

From the following particulars, prepare Bank Reconciliation Statement as on 31st March, 2019:
Balance as per Pass Book on 31st March, overdraft balance Rs.80,000
Cheque drawn on 25th March, 2019 but not presented for payment till April 2019 Rs.15,000, Rs.5000 and Rs.8000.
Interest on bank overdraft not entered in the Cash Book Rs.2,000.
Outstation cheque Rs.30,000 deposited into bank but collected in April, 2019.
Rs.10,000 Insurance Premium paid by the bank as per trader’s standing instructions has not been entered in the cash book.
Chamber of commerce fee Rs.3000 paid by the bank for traders but not recorded in the cash book.
Collection charges of Rs.1000 charged by bank but not entered in the Cash Book.
Bill of Rs.5000 discounted dishonoured but not recorded in the cash book.​

Answer 1

Bank Reconciliation Statement

Explanation:

Bank Reconciliation Statement is a statement prepared by the account holder on a particular date to reconcile the bank balance as per Cash Book with the balance as per Bank Statement showing entries because of which differences between the two balances exist. It is not a part of book keeping but is a method to ensure that there are no errors or omissions in recording bank transactions in the cash book.

Pls refer to the attached pic below for the preparation Bank Reconciliation Statement as on 31st March, 2019.