BANK

A 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.
CASH BOOK & PASS BOOK

The cash books are

simple accounting
books that are used to
enter basic data about
cash payments and
receipts.
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
 Example sum of BRS , Pg. no.206

Bank Reconciliation Statement as on Dec 31, 2003

PARTICULARS AMOUNTS AMOUNTS

Balance as per Cash Book 200

 Bank Reconciliation Statement as on Dec 31, 2003
1. Cheques deposited but not yet collected by the bank
Rs. 1,500

PARTICULARS AMOUNTS AMOUNTS

Balance as per Cash Book
LESS: 200
Cheques deposited but not credited by the
bank 1,500

CASH BOOK PASS BOOK

100 100
(+) 1500 -

(-)
1600 ≠ 100
 Bank Reconciliation Statement as on Dec 31, 2003
2. Cheque issued to Mr.Raju has not yet been presented
for payment Rs. 2,500

PARTICULARS AMOUNTS AMOUNTS

Balance as per Cash Book 200

ADD:
Cheques issued to Mr.Raju but not presented 2,500
for payment 2,500

CASH BOOK PASS BOOK

3000 3000
(-)2500 -

(+)
500 ≠ 3000
Bank Reconciliation Statement as on Dec 31, 2003
3. Bank charges debited in the pass book Rs.200

PARTICULARS AMOUNTS AMOUNTS

Balance as per Cash Book 200

LESS:
Bank charges as per pass book 200 200

CASH BOOK PASS BOOK

500 500
- 200 (-)
500 ≠ 300
(+)
Bank Reconciliation Statement as on Dec 31, 2003
4. Interest allowed by the bank Rs.100

PARTICULARS AMOUNTS AMOUNTS

Balance as per Cash Book 200

ADD:
Interest allowed by the bank 100

CASH BOOK PASS BOOK

500 500
- 100 (+)
500 ≠ 600
(-)
Bank Reconciliation Statement as on Dec 31, 2003
5. Insurance premium directly paid by the bank as per
standing instructions Rs.500
PARTICULARS AMOUNTS AMOUNTS

Balance as per Cash Book 200

LESS:
Insurance premium directly paid by the bank 500
as per standing instructions

CASH BOOK PASS BOOK

1000 1000
- 500 (-)
1000 ≠ 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

TH
AN
K YO
U