Unit 8

Bank Reconciliation statement (BRS)

Problem 1
From the following particulars of M/s Ananaya Industries, prepare bank reconciliation
statement as on December 31, 2020.
1. Bank balance as per cash book 32,500.
2. Cheques deposited into bank but not credited upto December 31, 2020 8,900.
3. Cheques issued but not presented for payment 12,500.
4. Bank credited 5,000 for receiving dividend through Electronic Clearing System.
5. Bank charges debited by Bank 400.
Solution 1
Cash Book Pass Book
Receipt Payment Withdrawal Deposits
(+) (-) (-) (+)
Dr Cr Dr Cr
(-) (+) (-) (+)
8,900 12,500 400 5,000

Balance as per cash book 32,500

Add
1. Cheques issued but not presented for payment 12,500
2. Dividend directly credited by the bank 5,000 17,500
Less
1. Cheques deposited into bank but not credited 8,900
2. Bank charges debited by Bank 400 (9300)
Balance as per pass book 40,700

Problem 2
From the following particulars of Reema Traders, prepare a bank reconciliation statementon
June 30,2014
1. Balance as per the cash book 35,750.
2. 250 charges for Credit card fee is debited by bank, which is not recorded in cash book.
3. Cheques for 7,550 are deposited in the bank but not yet collected by the Bank.
4. There was also a debit in the pass book of 3,500 in respect of bank charges.
Solution 2
 Cash Book Pass Book
Receipt Payment Withdrawal Deposits
(+) (-) (-) (+)
Dr Cr Dr Cr
(-) (+) (-) (+)
7,550 250
7,550

Balance as per cash book 35,750

Less
1. Credit card fee is debited by bank, which is not 250
recorded in cash book.
2. Cheques deposited into bank but not credited 7,550
3. Bank charges Debited by bank 3,500 (11,300)
Balance as per pass book 24,450

Problem 3
Prepare Bank Reconciliation Statement of M/s Ashima Travels, from the following
information:
1. Bank overdraft as per Cash Book on 31st July, 2014 45,000
2. Cheques issued but not presented for payment 17,500
3. Cheques deposited but not yet collected by the bank 9,600
4. Interest on investment collected by the bank 2,300
5. Bank charges 350 debited by the bank not yet entered in the cash book.

Solution 3

Cash Book Pass Book

Receipt Payment Withdrawal Deposits

(+) (-) (-) (+)
Dr Cr Dr Cr
(+) (-) (+) (-)
9,600 17,500 350 2,300

Over draft as per cash book 45,000

Add
1. Cheques deposited but not yet collected by the bank 9,600
2. Bank charges debited by the bank not yet entered in 350 9,950
the cash book.
Less
1. Cheques issued but not presented for payment 17,500
2. Interest on investment collected by the bank 2,300 (19,800)
 Over draft as per pass book 35,150

Problem 4
From the following particulars of Neha and Co. prepare Bank Reconciliation Statement on
March 31,2014
1. Overdraft as per pass book 16,500
2. Interest on overdraft 1,600
3. Insurance premium paid by the bank 800
4. Cheques deposited but not yet credited 5,500
5. Cheques issued but not present for payment 7,000

Solution 4

Cash Book Pass Book

Receipt Payment Withdrawal Deposits

(+) (-) (-) (+)
Dr Cr Dr Cr
(-) (+) (-) (+)

5500 7000 1600

800

Overdraft as per Pass book 16,500

Add
1. Cheques issued but not present for payment 7,000 7,000
Less
1. Interest on overdraft 1,600 1,600
2. Insurance premium paid by the bank 800
3. Cheques deposited but not yet credited 5,500 7,900
Overdraft as per Cash book 23,500

Problem 5
Prepare Bank reconciliation as on 31.03 2019
1. Balance as per cash book Rs 2500.
2. Cheques Rs 2,500 issued but not presented for payment,
3. Cheque Rs 3,000 were received from debtors. Out of these cheques Rs 1,500 were
presented for payment on 10th April 2019
4. Bank paid Rs 650 as insurance premium as per our standing instructions.
5. Bank charged commission Rs 60, for which no entry was recorded in the cash book.
 6. Bank credited interest Rs 40, for which no entry was made in the cash book.
7. Transfer of Rs 2,000 from FD to bank account was not recorded in the cash book.
8. Bank collected dividend of Rs 300 and debenture interest of Rs 200 and credited in
the pass book. No entry was made in the cash book.

Solution 5

Cash Book Pass Book

Receipt Payment Withdrawal Deposits

(+) (-) (-) (+)
Dr Cr Dr Cr
(-) (+) (-) (+)
1500 2500 650 40
60 2000
300 + 200

Bank Reconciliation statement as on 31.03.2019

Balance as per cash book 2500
Add
1. Cheques issued but not presented for payment, 2500
2. Interest credited by the bank 40
3. Transfer from FD 2000
4. Dividend and interest credited in PB 500 5040
Less
1.Cheques recvd but not presented for payment 1500
1. Insurance premium paid by the bank 650
2. Bank charged commission for which no entry was 60 (2210)
recorded in the cash book.
Balance as per pass book 5300

Problem 6
Prepare bank reconciliation statement as on 31.12.2020
1. Overdraft as per cash book Rs 9170
2. Interest on overdraft charged for 6 months Rs 520. But no entry was made in the cash
book
3. Bank charges for the same period debited in the pass book but no entry was made in
the cash book Rs 70
4. Cheques drawn but not presented for payment Rs 1290.
5. Cheques deposited but not cleared Rs 2250
 6. A cheque deposited in bank dishonoured Rs 650. Not recorded was made in cash
book

Solution 6

Cash Book Pass Book

Receipt Payment Withdrawal Deposits

(+) (-) (-) (+)
Dr Cr Dr Cr
(+) (-) (+) (-)
2250 1290 520
70
650

Overdraft Balance as per cash book 9,170

Add
1. Interest on overdraft charged not entered in CB 520
2. Bank charges not entered in the CB 70
3. Cheques deposited but not cleared 2,250
4. A cheque deposited in bank dishonoured 650 3,490
Less
1. Cheques drawn but not presented for payment 1290 (1290)
Overdraft Balance as per pass book 11,370

Problem 7
Prepare bank reconciliation statement as on 30th June 2019
1. Balance as per pass book Rs 5000.
2. Cheques worth Rs 4,000 were deposited in the bank on 20th June, but out of these
cheques worth Rs 3,750 only were collected by bank.
3. Cheques issued not presented for payment Rs 100
4. Interested collected by bank Rs 25
5. Cheques entered on the receipt side of the cash book Rs 50. But not yet send to the
bank.
6. Cheques deposited in the bank and credited in the passbook but not entered in the
cash book Rs 100.
Solution 7

Cash Book Pass Book

Receipt Payment Withdrawal Deposits

(+) (-) (-) (+)
Dr Cr Dr Cr
( +) (-) (+) (-)
250 100 25
50 100

Bank Reconciliation statement as on 30th June 2019

Balance as per pass book 5,000
Add
1. Cheques deposited but not collected 250
2. Cheques entered on the receipt side of the cash book, But 50 300
not yet send to the bank.

Less
1. Cheques issued but not presented for payment 100
2. Interest collected by the bank 25
3. Cheques deposited in the bank and credited in the 100 (225)
passbook but not entered in the cash book
Balance as per cash book 5,075

Problem 8
Prepare Bank Reconciliation Statement
1. Bank overdraft balance as per pass book Rs 70,400.
2. Cheques issued to creditors amounting to Rs 20,000 were not presented for payment.
3. Cheques sent to the bank for collection not yet credited in the pass book Rs 14,000.
4. Dividend collected by bank Rs 1000.
5. Bank paid insurance premium for which no entry in the cash book. Rs 1600.
6. Interest on overdraft charged by the bank Rs 600.

Solution 8
Cash Book Pass Book
Receipt Payment Withdrawal Deposits
(+) (-) (-) (+)
Dr Cr Dr Cr
(-) (+) (-) (+)
14,000 20,000 1,600 1,000
600
Overdraft balance as per pass book 70,400
Add
1. Cheques issued to creditors not presented for payment 20,000
2. Dividend collected by bank 1,000 21,000
Less
1. Cheques sent to the bank for collection not yet credited in the 14,000
pass book
2. Bank paid insurance premium for which no entry in the cash 1,600
book
3. Interest on overdraft charged by the bank 600 (16,200)
Overdraft balance as per cash book 75,200