Bank Reconciliation Statement- Problem Making

Cash Book Taka Pass Book Taka

(Depositors Book) (Bank’s Book)
Deposit in Bank 10,000 10,000
20,000 Received from A/R 20,000
2,000 Received Bank Interest 2,000
(1,000) Bank Charged Service (1,000)
Charge
Paid A/P with a cheque (5,000) (5,000)
Adjusted Balance 26,000 Adjusted Balance 26,000

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 Bank Reconciliation Statement- Problem Making
Cash Book Taka Pass Book Taka
(Depositors Book) (Bank’s Book)
Deposit in Bank 10,000 10,000
Received from A/R 20,000
Received Bank Interest 2,000
Bank Charged Service (1,000)
Charge
Paid A/P with a cheque (5,000)
Unadjusted Balance 5,000 Unadjusted Balance 31,000

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 Bank Reconciliation Statement
Particulars Taka
Unadjusted Balance as per Pass Book
Add:
Deduct:
Adjusted Balance as per Pass Book
Unadjusted Balance as per Cash Book
Add:

Deduct:

Adjusted Balance as per Cash Book

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 Bank Reconciliation Statement
Particulars Taka
Unadjusted Balance as per Pass Book 31000
Add:
Deduct: Outstanding Cheque/Unpresented Cheque (5000)

Adjusted Balance as per Pass Book 26000

Unadjusted Balance as per Cash Book 5000
Add: Received from A/R 20000
Received Bank Interest 2000
Deduct: Bank Service Charge (1000)
Adjusted Balance as per Cash Book 26000

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 Template: Bank Reconciliation Statement
Particulars Taka
Unadjusted Balance as per Pass Book
Add: Deposit in Transit
Deduct: Outstanding Cheque/Unpresented Cheque
Adjusted Balance as per Pass Book
Unadjusted Balance as per Cash Book
Add: Received from A/R
Received Bank Interest
Deduct: Bank Service Charge
NSF Cheque/Dishonoured Cheque/Bounced Cheque
Adjusted Balance as per Cash Book

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 Problem 1
Company A's bank statement dated Dec 31, 2011 shows a balance of
$24,594.72. The company's cash records on the same date show a
balance of $23,196.79. Following additional information is available:
1. Following checks issued by the company to its customers are still
outstanding:
No. 846 issued on Nov 29 $320.00
No. 875 issued on Dec 26 49.21
No. 878 issued on Dec 29 275.00
No. 881 issued on Dec 31 186.50

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 Problem 1
2. A deposit of $400.00 made on Dec 31 does not appear on bank statement.
3. An NSF check of $850 was returned by the bank with the bank statement.
4. The bank charged $50 as service fee.
5. Interest income earned on the company's average cash balance at bank
was $1,237.22.
6. The bank collected a note receivable on behalf of the company. Amount
received by the bank on the note was $550. This includes $50 interest
income. The bank charged a collection fee of $10.
7. A deposit of $430 was incorrectly entered as $340 in the company's cash
records.
Prepare a bank reconciliation statement using the above information.

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 Bank Reconciliation Statement
Particulars Taka
Unadjusted Balance as per Pass Book
Add:
Deduct:
Adjusted Balance as per Pass Book
Unadjusted Balance as per Cash Book
Add:

Deduct:

Adjusted Balance as per Cash Book

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 Bank Reconciliation Statement – Problem 1
Particulars Taka
Unadjusted Balance as per Pass Book 24,594.72
Add: 2. Deposit in Transit 400
Deduct: 1. Outstanding Cheque (No. 846: 320 + No. 875: 49.21+ (830.71)
No. 878: 275 + No. 881 : 186.50)
Adjusted Balance as per Pass Book 24,164.01
Unadjusted Balance as per Cash Book 23,196.79
Add: 5. Interest Earned 1,237.22
6. Note Receivable Received including 50 Taka Interest 550
7. Understatement of Bank Deposit 90
Deduct: 3. NSF Cheque (850)
4. Bank Charge (50) + 5. Bank Charge on N/R (10) (50+10)
Adjusted Balance as per Cash Book 24,164.01
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 Problem 2
Suppose your cash account showed a debit balance of $570 on June 30, 20XX.
Balance on the bank statement as of the same date was $290. You have
analyzed the records in the cash account and in the bank statement and
discovered the following differences: (Prepare a Bank Reconciliation Statement)
1. Checks drawn on June 29 have not yet cleared the bank account $ 300.
2. Deposit made into the bank account on June 30 was not recorded by the
bank until July 1 $ 435.
3. June bank charges on the bank statement $ 62.
4. June standing orders $ 160.
5. A check received and deposited into the bank account was refused by the
paying bank $ 230.
6. A payment had been entered twice into the cash account(s) $ 140.
7. June bank interest shown on the bank statement $ 167.

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 Problem 3
Wolverine Genetics Company of Flint, Michigan, spreads herbicides and
applies liquid fertilizer for local farmers. On May 31, 2010, the
company’s cash account per its general ledger showed the following
balance.

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 Problem 3
A comparison of the details on the bank statement with the details in the cash account revealed the
following facts.
1. The statement included a debit memo of $35 for the printing of additional company checks.
2. Cash sales of $1,720 on May 12 were deposited in the bank. The cash receipts journal entry and the
deposit slip were incorrectly made for $1,820. The bank credited Wolverine Genetics Company for the
correct amount.
3. Outstanding checks at May 31 totaled $1,225, and deposits in transit were $2,100.
4. On May 18, the company issued check no. 1181 for $911 to G. Fischer, on account. The check, which
cleared the bank in May, was incorrectly journalized and posted by Wolverine Genetics Company for
$119.
5. A $4,000 note receivable was collected by the bank for Wolverine Genetics Company on May 31 plus
$80 interest. The bank charged a collection fee of $25.No interest has been accrued on the note.
6. Included with the cancelled checks was a check issued by Carr Company to Henry Ford for $900 that
was incorrectly charged to Wolverine Genetics Company by the bank.
7. On May 31, the bank statement showed an NSF charge of $1,308 for a check issued by Bo
Sclembech, a customer, to Wolverine Genetics Company on account.
Prepare the bank reconciliation at May 31, 2010.
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 Problem 4
At September 2006, the balance in Wordsworth Co’s cash book was
805.15 Taka debit. A bank statement on 30 September 2006 showed
Wordsworth Co to be in credit at the bank by 1,112.30 Taka.
• On investigation of the difference, it was established that:
• The cash book had been undercast by 90.00 taka on the debit side.
• Cheques paid in but not yet credited by the bank were 208.20 taka.
• Cheques drawn not yet presented to the bank were 425.35 taka.
Prepare a bank reconciliation statement from the above information.

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