Exercise 7

The cash book is with the business.

The Bank statement is with the bank.
What is debited in the cashbook is credited in the bank statement.
What is credited in the cashbook is debited in the bank statement.
Adjusted cashbook includes the cheques which were mentioned in the bank statement but not in the
cashbook.
Bank reconciliation statement includes those cheques which were debited/ credited in the cashbook but
were left undebited/uncredited in the bank statement.
Exercise 7
Adjusted Cashbook

Balance b/d 10260 Wages 1450

Direct credit 500 Bank Charges 150
10760 Balance c/d 9160
Balance b/d 9160

Bank Reconciliation Statement

Balance as per bank statement 8550

Uncredited cheques (450 + 610) 1060
Undebited cheques (450)
Balance as per adjusted cashbook 9160

Adjusted Cashbook

Debit (Receipt) Credit (Payment)

Electric Bill 90 Balance b/d 3450
Customer Payment 220 Bank charges 212
Balance c/d 3352 Balance b/d 3662

Bank Reconciliation Statement

Balance as per bank 3009

Uncredited Cheques (600)
Unpresented Cheques 835
Undebited Cheques 108
Balance as per adjusted cash book 3352