Question

 What is Bank Reconciliation Statement? What are the causes of differences shown by balance as per cash book and balance as per cash book?​

Answer 1

Answer:

On checking Ram's cash book with the bank statement of his overdraft current

the month of November 2019, you find the following:

(a) Cash book showed an overdraft of 4,500.

(b) The payment side of the cash book had been undercast by # 150.

(c) A cheque for * 750 drawn on his saving deposit account has been shown

current account.

(d) Cheques amounting to * 7,000 drawn and entered in the cash book had on

presented

(e) Cheques amounting to * 6,000 sent to the bank for collection though entere

cash book, had not been credited by the bạnk.

(f) Bank charge of 75 as per bank statement of account had not been taken in te

book.

(g) Dividend of the amount of 2,500. had been paid to the bank and not entered

cash book.

You are requested to arrive at the balance as it would appear in the bank statement

30th November, 2019.