CHAPTER 2: BANK RE CONCIL IATION ST ATEMENT CLASSWORK Problem 1. Prepare BRS of Navin as on 31.07.

2011 from the following information: 1. Balance due from bank as per cash book as on 31.07.2011 Rs. 18,425. 2. Cheques issued were: Party s Name Amount (Rs.) Date of Payment by bank Ankur 3,100 27.07.2011 Bipin 4,700 7.08.2011 Chirag 2,900 29.07.2011 Deepak 4,600 Returned dishonoured 3. The cash book duly shows the dishonor of cheque issued to Deepak. 4. While carrying forward total of receipt side bank column from one page to another , the total of Rs. 6370 was carried forward as Rs. 7360. 5. Cheques deposited but not cleared Rs. 3625. 6. A cheque of Rs. 2140 was issued to Rajesh in full settlement of Rs. 2210. The same appears on the payment side of Cash book with interchanged figures of discount and bank columns. This cheque was paid on 30.07.2011. 7. Bank column on payment side of cash book was undercast by Rs. 1080. 8. Bearer cheque of Rs. 275 was received and the same appears in bank column on receipt side. Problem 2. On 31.03.2007, the pass book of Mitra showed a credit balance of Rs. 2,16,000. A comparison of pass book and cash book revealed the following: Rs. Cheques deposited not cleared by March 1,08,150 Cheques issued by Mitra but not yet presented for payment before 1.04.2007 26,000 Insurance premium paid by bank on behalf of Mitra but not yet recorded in 52,075 cash book Commission charged by bank not yet recorded in cash book 750 Interest on bonds collected by bank on behalf of Mitra not yet recorded in 25000 cash book Bank balance as per cash book as on 31.03.2007 is Rs. 3,25,975. 31st

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Problem 3 On 31.03.2007, the cash book of Ajay Ghosh showed a bank overdraft of Rs. 3,458. On examination of the cash book and bank statement, the following discrepancies were noted: 1. Cheques issued for Rs. 1200 were entered in the cash book but were not presented for payment at the bank till 1st week of April, 2007. 2. Cheques amounting to Rs. 1000 were entered in the cash book on 30th March,2007 but were banked on 2nd April,2007. 3. Cheques amounting Rs. 500 were deposited in the bank but were not collected till March 31st, 2007. 4. A cheque for Rs. 300 received from Mr. Dass Gupta and deposited in the bank was dishonoured but advice of non-payment was not received from the bank upto 31st March. 5. Rs. 3000 being the proceeds of a bill collected on 20th March did not appear in the cash book. 6. Rs. 300 being the proceeds of a bill collected on 20th March was omitted to be credited in the pass book. 7. The pass book showed an amount of Rs. 340, being rent which his tenant Madan Gopal had directly deposited on the bank 0n 31.03.2007. 8. A bill payable of Rs. 600 was duly paid off on 31st March according to the instructions of Ajay Ghosh but this was not entered into cash book. 9. Bank charges of Rs. 30 and interest an overdraft Rs. 170 appeared in the pass book but not in the cash book. Prepare a BRS and find out the balance as per pass book. Problem 4 On 30th April,2007 ; the pass book of Ghosh showed a debit balance of Rs. 32,675. You are required to prepare BRS taking into consideration the following information: Rs. Cheques issued but not yet presented for payment 18,513 Cheques deposited with the bank 1,38,000 But so far credited in the pass book 1,12,000 Interest collected by the bank but not recorded in cash book by Ghosh 1,200 Bank Charges not yet entered in cash book 150 Problem 5 From the following information supplied by Shri Mehta, prepare his bank reconciliation statement as on 31st March, 2007 after amending the cash book on that date:

ConceptAge Classes CS/ICWA Foundation - Accounts

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Rs. Bank overdraft as per bank statement 1,65,000 Cheques issued but not presented for payment 87,500 Cheques deposited with the bank but not collected 1,05,000 Cheque recorded in the bank column of the cash book but not sent to the 20,000 bank for collection Payments received from customers direct by the bank 35,000 Bank Charges debited in the statement 200 A bill for Rs. 30,000 (discounted with the bank in February at Rs. 29,780) 100 dishonored on 31st March and noting charges paid by the bank Premium on life policy of Mehta paid by the bank on standing advice 1,800 Overdraft balance (Cr.) on 25.03.2007, Rs. 80,000 carried over as debit balance on the next day Problem 6 From the following information, prepare BRS for Mr. Prakash Agarwal: DR. Date 97 Dec 1 8 10 15 22 28 31 Particulars To Balance b/f To R. Sen To P. Gupta To B.K. Roy To P. Patel To H. Kabir To T.K. Basu Cash A/c (Bank Column) Rs. 450 210 600 780 100 240 300 Date 97 Dec 2 6 8 12 16 22 24 28 30 31 31 Particulars By P.K. Sharma By T. Khanna By A. Amin By L. Narayan By K. Kundu By C. Banerjee By T. Sen By Wages By B.K. Agarwal By L.N. Mishra By Balance c/d Rs. 150 60 10 120 400 300 40 250 150 80 1,120 2,680 CR.

2,680 Bank Statement Date Particulars Dr. (Withdrawn) Cr. (Deposited)

97 Dec Balance b/f 1 6 Cheque 10 Cheque 12 Deposit 13 Cheque

Balance (Rs.) 450 Cr. 300 Cr. 240 Cr. 450 Cr. 440 Cr.
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150 60 210 10

ConceptAge Classes CS/ICWA Foundation - Accounts

14 15 15 19 20 25 28 29 31

Deposit Bank Charges Cheque Deposit Cheque Deposit Cheque Cash Standing Order Subscription

600 5 120 780 400 100 40 250 Club 100

1,040 Cr. 1,035 Cr. 915 Cr. 1,695 Cr. 1,295 Cr. 1,395 Cr. 1,355 Cr. 1,105 Cr. 1,005 Cr.

HOMEWORK Problem 1: CS Dec 2010 8 marks On 30th June, 2010, the pass book of Nataraj showed a bank overdraft of Rs. 46,000. The following additional information is available. You are required to prepare a BRS as on the above mentioned date: 1. Out of the total cheques issued, cheques for Rs. 22,000 have not been presented for payment so far. 2. Cheques paid into bank for collection, but not yet cleared total Rs. 31,000. 3. Bank has charged Rs. 2,300 as interest on overdraft; it doesnot appear in cash book. 4. A customer has directly deposited Rs. 8,300 with bank in Nataraj s account for which there is no entry in cash book. 5. Dividend on shares collected by bank and credited in the pass book amounts to Rs. 2,000 for which no intimation has been given to Nataraj so far. 6. A bill for Rs. 10,000 discounted with the bank was dishonored on maturity. Bank has debited Nataraj with Rs. 10,100 including Rs. 100 for noting charges, the transaction has not yet been recorded in cash book. Problem 2: CS June 2010 8 marks Rim Zim Ltd. maintains a current account with the State Bank of India. On 31st March, 2010; the bank column of its cash book showed a debit balance of Rs. 1,54,300. However the bank statement showed a different balance as on that date. The following were the reasons for the difference: Cheques deposited, not yet credited by bank Cheques issued, not yet presented for payment Bank charges not yet recorded in the cash book Cheques received by the bank directly from trade debtors Insurance premium paid by bank as per standing instructions, but not yet recorded
ConceptAge Classes CS/ICWA Foundation - Accounts

Rs. 75,450 80,760 1,135 1,35,200 15,400

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in the cash book Dividend collected by the bank, but not yet recorded in the cash book Find out the balance as per the bank statement as on 31st March, 2010 Problem 3: CS Dec -2009 8 marks

1,000

While comparing the cash book of Mayank with the bank pass book on 30th September, 2009; you find the following: 1. The bank pass book showed a debit balance of Rs. 15,000. 2. Bank paid insurance premium Rs. 2,000, but it was recorded as Rs. 200 only in cash book. 3. Cheques issued in favour of suppliers in September, 2009 amounted to Rs. 55,000 but cheques for Rs. 50,000 only were presented for payment upto 30th September,2009. 4. Direct deposit of Rs. 10,000 in Mayank s bank account by a customer on 25th September, 2009 had not been recorded in the cash book. 5. Dividend collected by bank , but not recorded in cash book Rs. 1,000. 6. Bank charges Rs. 300 for its services, but they were yet to be recorded in the cash book. 7. Cheques amounting to Rs. 78,000 were deposited with the bank in the last week of September, 2009 but cheques for Rs. 51,000 only had been cleared before 1st October, 2009. Prepare the bank reconciliation statement ascertaining bank balance/overdraft as per cash book. Problem 4 CS June 2009 6 marks On the basis of the following information, prepare a bank reconciliation statement as at 31st December, 2008: Bank balance as per cash book as on 31st December, 2008 Rs. 10,000 7,500 50 4,000

Cheques deposited for collection, but not credited by the bank before 1st January, 2009 Incidental charges appearing in the pass book on 30th December, 2008 with no advice received yet Cheques issued, but not presented to bank for payment before 1st January,2009

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