Bank Reconciliation Statement-Theory

Bank Reconciliation Statement |1
Ex.01
The following are the extracts from the bank book and bank statement of F.Perera
Bank Book
December Dr. Rs. December Cr. Rs.

2009 2009
01 Balance b/d 3419 08 B.Yardly 462
07 F.Liyanage 101 15 F.Gomes 21
22 G.Bastin 44 28 T.Ekanayake 209
31 W.Thomas 319 31 Balance c/d 3437
31 S.Mathew 246
4 129 4 129
Bank Statement
December Dr. Cr. Balance

2009 Rs. Rs. Rs.
01 Balance b/d 3 419
07 Cheque 101 3 520
11 B.Yardly 462 3 058
20 F.Gomes 21 3 037
22 Cheque 44 3 081
31 Credit Transfer : T. Mangala 93 3 174
31 Bank Charges 47 3 127
Required:-
a) Write the book up to date and state the new balance as on 31st December 2009.
b) Draw up a Bank Reconciliation Statement as on 31st December 2009
M. Shafee Ibrahim Advanced Level – Accounting Theory

Ex.02
The bank column in the bank book for June 2007 and the Bank Statement for that month for D.Hewage are as
follows.
Bank Book
June 2007 Dr. Rs. June Cr. Rs.

2007
01 Balance b/d 1 410 05 L.Hiran 180
07 J.Mahinda 62 12 J.Renuka 519
16 T.Venuri 75 16 T.Shihan 41
28 F.Shanta 224 29 Blue Disco 22
30 G.Bandula 582 30 Balance c/d 1 591
2 353 2 353
Bank Statement
June Dr. Cr. Balance

2007 Rs. Rs. Rs.
01 Balance b/d 1 410
07 Cheque 62 1 472
08 L.Hiran 180 1 292
16 Cheque 75 1 367
17 J.Renuka 519 848
18 T.Shihan 41 807
28 Cheque 224 1 031
29 SLM Standing order 52 979
30 Prem: Traders credit 64 1 043
30 Bank Charges 43 1 000
Required:-
c) Write the book up to date to make the above into account.

d) Draw up a Bank Reconciliation Statement as on 30 June 2007

Ex.03
The bank statement for R.Hood for the month of March 2006 is:
2006 Dr. Cr. Balance

Rs. Rs. Rs.
March 01 Balance 4 200 O/D
08 T.Max 184 4 384 O/D
16 Cheque 292 4 092 O/D
20 W.Mily 160 4 252 O/D
21 Cheque 369 3 883 O/D
31 G.Frank : Traders Credit 88 3 795 O/D
31 XYZ: Standing order 32 3 827 O/D
31 Bank Charges 19 3 846 O/D
The bank book for March 2006 is:
2006 Dr. Rs. 2006 Cr. Rs.

March March
16 G.Philip 292 01 Balance b/d 4200
21 J.Foke 369 06 T.Max 184
31 S.Hare 192 30 W.Mily 160
31 Balance c/d 4195 30 S.Porter 504
5048 5048
Required:-
a) Write up the bank book up to date

b) Draw up a bank reconciliation statement as on 31st March 2006

Ex.04
The following is the bank book (bank columns) of Kavinda for December 2007.
2007 Dr. Rs. 2007 Cr. Rs.

December December
06 Prashan 230 01 Balance b/d 1900
20 Heshan 265 10 T.Max 304
31 Bimal 325 19 W.Mily 261
31 Balance c/d 1682 29 S.Porter 37
2502 2502
The bank statement for the month is:
2007 Dr. Cr. Balance

Rs. Rs. Rs.
December 01 Balance 1 900 O/D
06 Cheque 230 1 670 O/D
13 Lohan 304 1 974 O/D
20 Cheque 265 1 709 O/D
22 Viraj 261 1 970 O/D
30 Tiran : Standing Order 94 2 064 O/D
31 Renu: Traders credit 102 1 962 O/D
31 Bank Charges 72 2 034 O/D
Required-
a) Write the book up to date to take the necessary items to account

b) Draw up a bank reconciliation statement as on 31st December 2007.

Ex.05
Following are the business bank account and bank statement for the month of August of 2011
Bank Account
Date Details Amount Date Details Amount

2011 Rs. 2011 Rs.
Aug.01 b/b/f 154 000 Aug.02 Insurance (8451) 12 100
Aug.02 Cheque deposit 41 000 Aug.04 Electricity (8452) 14 200
Aug.04 Cheque deposit (4526) 12 500 Aug.06 D.Perera (8453) 20 500
Cheque deposit (2452) 18 000 Aug.08 Rates (8454) 6 000
Aug.06 Cash deposit 21 000 Aug.12 R.Silva (8455) 24 800
Aug.08 Cash deposit 13 000 M.Fernando (8456) 36 000
Aug.12 Cheque deposit (2248) 21 500 Aug.16 Travelling (8457) 2 800
Aug.15 Cheque deposit (3247) 42 000 Aug.18 Telephone charges 11 000
(8458)
Aug.22 Cash deposit 30 000 Aug.20 Goodluck Ltd. (8459) 15 500
Aug.24 Cheque deposit (5262) 14 000 Aug.26 Purchases (8460) 46 000
Aug.26 Cash deposit 26 000 Aug.30 Star traders (8461) 26 500
Aug.28 Cheque deposit (4628) 50 000
Aug.29 Cheque deposit (3420) 26 000
Aug.31 Cash deposit 44 000 Aug.31 b/c/d 297 000
513 000 513 000
b/b/f 297 600
Bank Statement
Date Description Dr. Cr. Balance

2011 Rs. Rs. Rs.
Aug.01 b/b/f 154 000
Aug.02 Cash deposit 41 000 195 000
Aug.03 Cheque (8451) 12 100 182 900
Aug.06 Cheque deposit 12 500 195 400
Cheque deposit 18 000 213 400
Cheque (8452) 14 200 199 200
Cash deposit 21 000 220 200
Aug.10 Loan installment 17 000 216 200
Cheque (8454) 6 000 210 200
Cheque (8455) 24 800 248 900
Aug.18 Cheque (8456) 36 000 212 900
Aug.20 Leasing installment 16 400 196 500
Cheque (8457) 2 800 193 700
Aug.21 Cheque (8458) 11 000 182 700

Investment income 21 500 234 200

Aug.28 Cheque (8460) 46 000 214 200
Standing order – Insurance charges 13 500 200 700
Aug.29 Credit transfer – Amal 22 000 222 700
Aug.30 Credit transfer – Anil 14 000 236 700
Bank charges 2 300 278 400
Prepare: -
a) Amended bank account

b) Bank reconciliation statement as at 31st August 2011
Ex.06
The following relates to Preston & co. Prepare the bank reconciliation statement
Cash book
1/12 b/d 8700 6/12 Little 1745

7/12 Blake 440 14/12 Jones 165
20/12 Dyson 365 21/12 Fraser 575
30/12 Veale 945 31/12 c/d 9155
31/12 Woodburn 300
31/12 May 890
11640 11640
Bank statement
Date Details Dr Cr Balance

1/12 B/d 8700
9/12 Cheque 440 9140
10/12 Little 1745 7395
19/12 Jones 165 7230
20/12 Cheque 365 7595
26/12 BGC: todd 270 7865
31/12 Bank charges 110 7755

Ex.07
The following relates to Flynn & co. Prepare the bank reconciliation statement
Cash book
6/12 Hall 155 1/12 b/d 3872

20/12 Walters 189 10/12 Wood 206
31/12 Miller 211 19/12 Roberts 315
31/12 c/d 3922 29/12 Phillips 84
4477 4477
Bank statement

1/12 B/d 3872 O/D
6/12 Cheque 155 3717 O/D
13/12 Wood 206 3923 O/D
20/12 Cheque 189 3734 O/D
22/12 Roberts 315 4049 O/D
30/12 Standing order 200 4249 O/D
31/12 Saunders:BGC 180 4069 O/D
31/12 Bank charges 65 4134 O/D
Ex.08
The following relates to Baxter & co. Prepare the bank reconciliation statement
Cash book
16/12 Morris 122 1/12 b/d 2598

21/12 Fraser 167 6/12 Young 61
31/12 Southern elect 160 30/12 Duffy 104
31/12 c/d 2804 30/12 Clark 490
3253 3253
Bank statement

1/12 B/d 2598 O/D
8/12 Young 61 2659 O/D
16/12 Cheque 122 2537 O/D
20/12 Duffy 104 2641 O/D
21/12 Cheque 167 2474 O/D

31/12 BGC: May 929 1545 O/D

31/12 Standing order 100 1645 O/D
31/12 Bank chargers 28 1673 O/D
Ex.09
The following is the bank statement of Nimal Traders for the month of January 2003
Date Particulars Debit (Rs). Credit (Rs). Balance (Rs).

01.01.2003 Balance 12 500
02.01.2003 Debit tax 50 11 450
05.01.2003 Chq.563761 4000 7 450
06.01.2003 Cash 5 000 12 450
10.01.2003 Chq. 15 000 27 450
15.01.2003 Interest 450 27 000
25.01.2003 Chq. 10 000 37 000
26.01.2003 Chq.563763 2 500 34 500
27.01.2003 Chq.book 75 34 425
Other information: -
i. It was revealed that the following cheques which are recorded in the bank book did not appear in the
above bank statement
Date Chq.No. Amount Details

26.01.2003 563762 Rs.4 800 Issued to Nihal Ltd
30.01.2003 721620 Rs.5 600 Deposited in the bank
ii. The balance as at 1st January 2003 in the cash book was the same as that in the bank statement
Required: -
1) Prepare bank account as it appeared in the books of Nirmal Traders from 1 st January 2003 to 31st January
2003
2) Enter all adjustments in the bank account after receipt of the bank statement
3) Prepare bank reconciliation statement for the month of January 2003
(A/L - 2003)

Ex.10
Following are transactions appearing in the bank account of Gajaba Sons for the month of July 2005
Date Description Dr.(Rs) Date Description Chq.No Cr.(Rs)

01 July Balance b/f 31 000 01 July Purchases 234533 12 000
03 July Cash 13 500 03 July Drawings 234534 12 400
12 July Cheque- Silva 6 700 10 July Salary 234535 12 000
14 July Cheque – Kasun 2 500 15 July Purchases 234536 5 600
28 July Cheque - Ruwan 9 400 24 July Rent 234537 3 200
Cheque – Sajith 4 500 31 July Balance c/f 26 900
30 July Cash 4 500
You are given the following bank statement of Gajaba Sons received for the month of July 2005
Date Description Dr. (Rs) Cr. (Rs) Balance (Rs)

01 July Balance 31 000
Cash 13 500 44 500
10 July 234535 12 000 32 500
12 July 234534 12 400 20 100
13 July Cheque – Silva 7 600 27 700
Bank charges 800 26 900
25 July 234537 3 200 23 700
28 July 345678 60 000 -36 300
Cheque – Ruwan 9 400 -26 900
Cheque – Sajith 4 500 -22 400
30 July Cash 4 500 -17 900
Interest 600 -18 500
You are required to prepare: -
a) An amended bank account as at 31st July 2005

b) A bank reconciliation statement as at 31st July 2005
Ex.11
You are given the following bank statement of Sisila Enterprise received for the month of May 2003
2003 Description Dr.(Rs). Cr.(Rs). Balance (Rs).

01 May Balance b/f 11 000
Cash 13 500 24 500
11 May 233335 1 200 23 300
12 May 233334 12 400 10 900
13 May Cheque – Perera 6 700 17 600
Bank charges 800 16 800
25 May 233337 3 200 13 600
28 May 444444 600 13 000
Cheque - Saman 4 900 17 900

Bank Reconciliation Statement | 10
Cheque – Sarath 5 400 23 300

30 May Cash 4 500 27 800
The bank account of Sisila Enterprise for the month of May 2003 as follows:
Date Description Dr.(Rs) Date Description Chq.No Cr.(Rs)

01 May Balance b/f 11 000 01 May Purchases 233333 12 000
03 May Cash 13 500 03 May Drawings 233334 12 400
13 May Cheque- Perera 6 700 Salary 233335 1 200
14 May Cheque – Cooray 2 500 15 May Purchases 233336 5 600
28 May Cheque – Saman 4 900 24 May Rent 233337 3 200
Cheque – Sarath 5 400 31 May Balance c/f 15 000
30 May Cash 5 400
49 400 49 400
You are required to: -
1. Prepare the amended bank account showing only the corrections/ adjustments before reconciling with
the bank balance
2. Prepare a bank reconciliation statement of Sisila Enterprise as at 31st May 2003
Ex.12
On 31st December 2006 the bank account of K.Thompson’s showed a balance of Rs.4 500. The bank statement as
at 31st December showed a credit balance of Rs.8 850 on the account. You checked the bank statement with the
bank account and found that the following had not been entered in the bank account.
a) A standing order to RB insurance Rs.600 had been paid by the bank

b) Bank interest receivable of Rs.720 had not been entered into the account
c) Bank charges of Rs.90 had been made
d) A credit transfer of Rs.780 from KB Ltd, had been paid direct into the account
e) Thompson’s deposit account balance of Rs.4 200 had been transferred into his bank current account
f) A returned cheque of Rs.210, dishonored by C.Hall, had been entered on the bank statement
You also found the two cheques, payable to L.Young Rs.750 and K.Clerk Rs.870, had been entered into the bank
account but had not been presented for payment. In addition a cheque for Rs.2070 had been paid into the bank on
31st December 2006 but had not been credited on the bank statement until 2nd January 2007.
Required:
a) Starting with the bank account debit balance of Rs.4 500, write the bank account up to date
b) Draw up a bank reconciliation statement as on 31st December 2006

Ex.13
The bank account of Kumara Ltd, showed a debit balance of Rs.52 000 on 31st March 2006, the bank statement
credit balance to this date was Rs.128 000
Subsequent examination revealed the following
i. Unpresented cheques issued to suppliers Rs.35 500 and Rs.17 500

ii. Standing order paid to traders association Rs.5 000
iii. Bank charges not appeared in the bank account Rs.1 500
iv. Deposited but not realized cheques Rs.12 000
v. Traders credit Rs.18 000 and Rs.31 000
vi. Cheque returned by the bank Rs.7 500
Prepare:
a) Adjusted bank account

b) Bank reconciliation statement for the month of March 2006 (A/L - 2006)
Ex.14
The bank account of Vasana Trading Co. showed a debit balance of Rs.14 000 and the bank statement showed a
credit balance of Rs.42 500 on 31.03.2007. Subsequent examination revealed the following
i. A cheque of Rs.14 500 deposited in the bank account on 30.03.2007 was not recorded in the bank
statement
ii. A cheque of Rs.50 000 has been directly deposited by a customer in the bank account on 25.03.2007. This
amount was not recorded in the bank account till 31.03.2007
iii. Cheques amounting to Rs.15 000 and Rs.20 000 issued to a supplier were not presented to the bank for
payment till the end of March.
iv. A cheque received from a customer for Rs.32 000 was deposited in the bank on 26.03.2007. This cheque
was dishonoured. However this dishonoured cheque was not recorded in the bank account till
31.03.2007.
v. Bank debit tax of Rs.500 and standing order payment for owners life insurance premium of Rs.9 500
appeared in the bank statement were not recorded in the bank account till 31.03.2007.
Required:
a) Record the relevant transactions in the bank account showing the adjusted bank balance on 31.03.2007
b) Prepare bank reconciliation statement for the month of March 2007
(A/L - 2007)

Ex.15
The bank book of a business showed a debit bank balance of Rs.20 000 as at 31.03.2012. On this date, the bank
statement showed an overdrawn balance of Rs.10 000. The subsequent investigation revealed the following
i. Cheques deposited in the bank amounting to Rs.80 000 have not been realized
ii. Cheques issued to suppliers for Rs.40 000 have not been presented to bank for payment
iii. Interest on fixed deposit of Rs.25 000 directly remitted to the bank has not been recorded in the bank
book
iv. A payment of Rs.5 000 made by the bank as insurance premium on a standing order has not been
recorded in the bank book
v. A cheque for Rs.10 000 deposited in the bank has been dishonoured, but no entry has been made in the
bank book.
Required:
a) Adjusted balance of bank book as at 31.03.2012

b) Bank reconciliation statement for the month of March 2012
(A/L - 2012)
Ex.16
The bank column of Crown Ltd, showed a credit balance of Rs.30 000 on 31.12.2007. However on this date the
bank statement showed a balance of Rs.18 000 O/D. The following were revealed at the subsequent examination
conducted by the accountant of the company.
i. A cheque of Rs.30 000 deposited with the bank has not yet realized
ii. A cheque of Rs.50 000 issued has not yet been presented for payment.
iii. An investment income of Rs.7 000 directly collected by the bank has not been recorded in the bank
account
iv. A payment of Rs.5 000 for insurance premium made on a standing order has not been recorded in the
bank account
v. A deposited cheque of Rs.10 000 has been dishonoured by the bank, but no entry has been made in the
bank account.
Required:-
a) Make required adjustment in the bank account of the company

b) Prepare the bank reconciliation statement as at 31.12.2007 after adjusting the bank book
(A/L - 2008)

Ex.17
The bank statement balance of Vindy High Tea Ltd., did not agree with the debit balance of Rs.107,000/- as per
bank column of the cash book as at 31st March 2016. At the same date bank statement has shown a favourable
balance of Rs.227,000/-.
The following reasons were revealed subsequently for the difference:
(1) The following issued cheques had not been presented for payment to the bank as at 31st March 2016:
Cheque No. Date Issued Amount Rs.
750298 25.03.2016 5,500 750307 28.03.2016 70,000 750136 30.03.2016 83,000
(2) The following cheque deposit was not realized during the month of March 2016:
Cheque No. Date Deposited Amount Rs. 345675 30.03.2016 25,000
(3) The bank had erroneously debited an amount of Rs.11,000/- to Vindy High Tea Ltd.’s bank account on 30th
March 2016.
(4) Bank charges of Rs.2,500/- for the month of March 2016 which was charged by bank has not been
recorded in the Cash Book. You are required to,
Prepare the following for Vindy High Tea Ltd.:
(a) Adjusted Cash Book as at 31st March 2016. (b) Bank Reconciliation Statement as at 31st March 2016.
Ex.18
As at 31st March 2015, cash book of Perfect (Pvt) Ltd. shows a debit bank balance of Rs.156,400/- which is
different from the bank statement balance.
Examination of the records revealed the following reasons for the said difference;
(1) The bank has charged bank charges of Rs.3,000/-.
(2) Cheque book charges erroneously charged by the bank is Rs.750/-.
(3) Direct deposit of Rs.10,000/- into the bank account by a customer has not been recorded in the cash book.
(4) Following deposited cheques were not realized during the month: No. 750121 : Rs. 25,000/- No. 141510 : Rs.
110,000/-
(5) Following issued cheques were not presented for payments: No. 500221 : Rs.65,000/- No. 500300 : Rs.27,000/-
You are required to:
Prepare the Bank Reconciliation Statement and identify the balance that appeared in the bank statement as at
31st March 2015.

Ex.19
The bank statement of Charm Cakes Ltd. as at 31st December 2016 showed an overdraft balance of Rs.53,029/-,
while the cash book of the company showed a debit balance of Rs.15,274/-. The following reasons were identified
for the difference:
(1) The following cheques deposited have not been realized by 31st December 2016:
Cheque No. Date of Deposit Amount (Rs.)
321154 28.12.2016 156,200
265471 31.12.2016 24,675
(2) The following cheques issued by the company have not been presented for payments by 31st December 2016:
Cheque No. Date of Issued Amount (Rs.)
628734 25.12.2016 3,274
628742 28.12.2016 115,248
(3) The book-keeper has erroneously entered the value of the issued cheque number 628730 as Rs.69,745/- in the
cash book, whereas the correct value of the cheque was Rs.67,945/-.
(4) The bank has charged cheque book charges of Rs.2,500/- on 31st December 2016, which was not recorded in
the cash book.
(5) The bank has erroneously credited an amount of Rs.5,250/- to the bank account of Charm Cakes Ltd. on 31st
December 2016.
You are required to: Prepare the following for Charm Cakes Ltd.:
(a) Adjusted cash book as at 31st December 2016.
(b) Bank Reconciliation Statement as at 31st December 2016.

Starting with bank statement balance (Debit or Credit)
 Unrealized (+)
 Unpresented (-)
Ex.20
From the following particulars, prepare the adjusted bank account and bank reconciliation statement of
Mahendran Ltd. As at 31st December 1990
i. Overdraft as at 31st December 1990, as per bank statement was Rs.15 400
ii. Five cheques of Rs.6 400, Rs.8 900, Rs.498, Rs.780, and Rs.3 260 issued to creditors during the last
week of December were not appearing in the bank statement
iii. A cheque received and recorded in the bank column account but not realized in the bank during
month of December Rs.6 500
iv. Bank charges pf Rs.8 and interest recovered by the bank Rs.3 450 were not entered in the bank
account
v. Dividend Rs.40 450 collected by the bank on behalf of Mahendran Ltd, was not entered in the bank
account
vi. A cheque for Rs.99 deposited in the bank on 20th December and appearing in the bank statement was
not entered in the bank account
vii. The cheques of Rs.2 400, Rs.545 and Rs.769 were deposited in the bank on 27 th December, but were
cleared on 10th of January.
(A/L - 1991)
Ex.21
At the close of business on 31st December 2007 Sahan Perera’s bank statement showed a balance of Rs.2 460
which did not agree with his bank account account due to the following reasons: -
i. Cheques issued but not presented: Beauty Rs.330, Kamal Rs.475, Ashini Rs.76
ii. Amounts paid on 28th December not credited by the bank Rs.370
iii. Traders credit transfers not entered in the bank account: Judo Rs.51, Ludo Rs.320
iv. A standing order for Rs.101 subscription to a trade association had been paid by the bank and bank
charges of Rs.80 not entered in the bank account
Required: -
1. Prepare a bank reconciliation statement as at 31st December showing the calculation of the correct
balance
2. Show the bank account entries, working back to the original balance on 31st December 2007

Ex.22
A company bank statement shows a favorable balance of Rs.30 100 as at 31.03.2001
The statement includes bank charges of Rs.50 and direct deposit of Rs.1 000 from customer, which have not yet
been recorded in the cash book.
This statement does not include a cheque issued to a creditor amounting to Rs.700 and a cheque deposited
amounting to Rs.1 500 received from a debtor
Required: -
1. Prepare a bank reconciliation statement as at 31.03.2001 showing the calculation of the correct balance
2. Show the bank account entries, working back to the original balance on 31.03.2001
Ex.23
The bank statement of a business showed a credit balance of Rs.3 000 as at 31.02.2010. The following information
was revealed when reconciling the bank book balance with the bank statement balance as of that date
i. Cheques deposited amunting to Rs.80 000 has not been realized

ii. A cheque issued to a supplier for Rs.30 000 has not been presented to the bank
iii. Bank charges of Rs.500 and standing order payment of Rs.1 500 for rent as per bank statement have
not been recorded to the bank book
iv. No entry has been made in the bank book with respect to a cheque amounting to Rs.20 000 returned
by the bank. This cheque had been received from a debtor and deposited in the bank
Required: -
1. Bank reconciliation statement

2. The balance of cash book as at 31st March 2010 before making necessary adjustments
3. Journal entry to record the dishonoured cheque
(A/L - 2010)

Adjustments which are not related to the current period
When there are cheques which are not related to the current period, the following steps are to be followed.
1. All unrealized and unpresented cheques which relates to the previous time period are now realized or
presented do not take take to the accounts
2. Any previous dated cheque dishonoured or expired enter to the current period amended bank account
3. All brought forward unrealized and unpresented cheques that belong to the previous time period should
be taken into consideration when preparing the bank reconciliation statement
Ex.24
Information given below relates to Kalyani Ltd.
i. Bank statement for the month of March 2000
Date Particulars Dr. Cr. Balance

Rs. Rs. Rs.
01/03 Balance 15 000
02/03 Cheques 8 000 23 000
05/03 Cash 20 000 43 000
18/03 Cheque – 532451 6 000
Cheque – 532456 19 000 18 000
24/03 Dividends 2 000 20 000
25/03 Cheque 4 000 24 000
26/03 Standing order 4 000 20 000
27/03 Cheques 3 000 23 000
31/03 Cheque Return 3 000 20 000
ii. Out of cheques issued in February 2000, cheques (Nos. 532451 and 532455) for Rs.6 000 and Rs.8 000
respectively had not been presented for payment as at March 1, 2000
iii. The bank balance as per bank account as at 31st March 2000, stood at Rs.12 000 before accounting
for dividends, standing order and cheque return
iv. Out of the cheques issued during the month, the cheque no.532457 for Rs.7 000 has not been
presented for payment as at March 31
v. The cheque for Rs.2 000 deposited during the month has not been realized as at March 31.
Required: -
1. Adjust the bank account as at 31st March 2000

2. With the use of adjusted bank balance, prepare the Bank Reconciliation Statement for the month of
March 2000
(A/L – 2000)
Ex.25

Bank statement and the bank account of Liyanage and Co. Ltd. As at 28 th February 2003, is given below.
1. Bank reconciliation statement as at 28th February 2003.
Rs.
Balance as per bank statement (Cr) 9 800
(+) Cheque deposited but not credited 1 500
11 300
(-) Cheque issued but not presented
Chq.No. 056 1 275
Chq.No.059 1 500 (2 775)
Balance as per bank account (Dr) 8 525
2.
Bank Account
Date Description Amount Date Description Amount

1993 Rs. 1993 Rs.
01/03 b/b/f 8 525 05/03 Purchase 063 5 600
03/03 Upul 2 500 08/03 Mohan 064 3 860
Lakmini 1 750 15/03 Wages 065 3 200
Cash deposit 3 700 18/03 Rent (std. order) 2 500
08/03 Cash deposit 7 800 20/03 Baratha 066 1 750
14/03 Kapila 1 600 23/03 Petty cash 067 1 000
18/03 Dayananda 1 800 25/03 Purchase 068 18 500
Wilson 3 100 30/03 Advertising 069 2 800
28/03 Perera 14 100
b/c/d 5 665
44 875 44 875

3.
Bank Statement

Rs. Rs. Rs.
Feb.28 Balance 9 800
Mar.01 Cheque 1 500 11 300
03 Cash 3 700 15 000
08 063 5 600 9 400
Cheque 1 750 11 150
Cash 7 800 18 950
10 059 1 500 17 450
064 3 860 13 590
15 Cheque 1 600 15 190
16 065 3 200 11 990
18 Standing order 2 500 9 490
20 Cheque 1 800 11 290
Returned cheque 1 810 9 480
25 067 1 000 8 480
28 068 18 500 10 020 O/D
Dividends 2 000 8 020 O/D
Cheque 1 300 6 720 O/D
30 Bank charges 350 7 070 O/D
31 b/b/f 7070 O/D
Additional information: -
1. The cheque received from Wilson on 16th March 2003 was Rs.1 300 not Rs.3 100
2. The cheque received from Dayananda was returned and the bank charged Rs.10 to send the cheque to
the business
Required: -
1. Do the necessary adjustments to amend the bank account

2. By using the amended cash book balance prepare the Bank Reconciliation Statement as at 31 st March
2003.

Ex.26
By using the following bank statement and bank account, prepare the adjusted bank account and bank
reconciliation statement.

Rs. Rs. Rs.
Feb.28 B/b/f 9 000
Mar.03 1024 1 600 7 400
03 Cheque 1 000 8 400
05 1025 2 000 6 400
05 1023 2 000 4 400
06 Cheque 6 400 10 800
10 Cheque 1 000 11 800
14 1026 4 400 7 400
20 1027 2 600 4 800
20 Cheque 7 400 12 200
28 1028 3 600 8 600
28 Dividends 8 000 16 600
30 Cheque book 50 16 550
30 Bank charges 100 16 450
Bank Account
2008 Particulars Bank 2008 Particulars Cheque Bank

March Column March No. Column
Rs. Rs.
01 b/b/f 8 000 03 Cash 1024 1 600
04 Mahadeva 6 400 05 Drawings 1025 2 000
08 Dharmadasa 1 000 10 Kulasekara 1026 4 400
18 Nanayakkara 7 400 15 Sirimal 1027 2 600
21 Dayananda 2 800 28 cash 1028 3 600
28 Athukorala 200 29 Manoharan 1029 3 800
30 Karunaratne 400 30 Salaries 1030 3 400
30 Stationeries 1031 400
31 b/c/d 4 400
26 200 26 200
April 01 4 400
Additional Information: -
Unpresented Cheques Rs.2 000
Unrealized Cheques Rs.1 000

Ex.27
The following information relates to Thisara Ltd.
1. Items appeared in the bank reconciliation statement for the month of June 2009
 Cheques issued but not presented for payment
Cheque No. Payee Amount (Rs).

100100 Saliya 2 000
100110 Sunimal 5 000
 Cheques deposited but not realized
Cheque No. Payee Amount (Rs).

456371 Sarath 2 000
900200 Sunill 6 000
2. The bank account of the business for the month of July 2009
Date Description Dr. (Rs) Date Description Cr. (Rs).

01/07 b/b/f 3 000 06/07 Thilak chq.No 800
100120
02/07 Nimal Chq.No 124500 5 000 20/07 Saliya chq.no 3 000
100121
04/07 Lal chq. No 840222 1 000 30/07 Silva Chq.No 100122 200
08/07 Allen Ch.No 750200 1 200 30/07 Senath chq.no 2 000
100125
12/07 Sarath Ch.No. 500500 1 800 31/07 Insurance premium 5 000
12/07 Cash 5 000
20/07 Ranjan Chq.No 10 000 31/07 Balance C/F 16000
123456
27 000 27 000
3. An extract of the bank statement for the month of July 2009 was as follows
Date Description Dr. (Rs). Cr.(Rs). Balance (Rs).
01/07 b/f 2 000
02/07 Cheque 124500 5 000 7 000
03/07 100110 5 000 2 000
04/07 Cheque 900200 6 000 8 000
06/07 Cheque 840222 1 000 9 000
06/07 Returns 840222 1 000 8 000
18/07 Cheque 750200 1 200 9 200
10/07 100120 800 8 400
22/07 100121 3 000 5 400
30/07 Cash deposit 5 000 10 400
31/07 Ranjan 10 000 20 400

31/07 Standing order - insurance 5 000 15 400

31/07 Bank charges 400 15 000
Required:-
1. The cash at bank balance of Thisara Ltd, to be shown in the Balance sheet as at 31.07.2009
2. List the following separately as at 31.07.2009
a) The cheque issued but not presented
b) The cheque deposited but not realized
Ex.28
The following information is extracted from the books of Recon Traders:
(1) Bank Reconciliation Statement as at 30th April 2018
Balance as per Cash Control Account (cash book) as at 30th April 2018 15,200
Add: Cheques issued but not presented for payments:
265975 12,300
265985 15,350 27,650
Less: Unrealized deposits:
Cheque deposit 257461 (65,000)
Balance as per Bank Statement as at 30th April 2018 (22,150)
(2) On 31st May 2018, the bank has deducted cheque book charges of Rs.3,500/- and this was not recorded in the
cash book.
(3) The following issued cheques were not presented to the bank by 31st May 2018
Cheque No. Date of Issue Amount, Rs.
265975 15.04.2018 12,300
266105 15.05.2018 3,200
266115 31.05.2018 60,000
(4) All the unrealized deposits as at 30th April 2018 have been realized during the month of May 2018.
(5) On 29th May 2018, the bank has erroneously debited an amount of Rs.13,200/- to Recon Trader’s bank
account.

(6) The following cheque which has been deposited to the bank account by the company on 27th May 2018 has
not been realized by 31st May 2018: Cheque No. 452122 Rs.25,000
(7) The debit balance (favorable balance) of cash control account (cash book) as at 31st May 2018 was
Rs.49,000/-.
Prepare the following:
(a) The Adjusted Cash Control Account (cash book) as at 31st May 2018.
(b) The Bank Reconciliation Statement as at 31st May 2018.
Ex.29
The Bank Reconciliation Statement as at 28th February 2017 of Siva (Pvt) Ltd. was as follows:
Balance as per Cash Book as at 28th February 2017 (12,300)

Add: Cheques issued but not presented for payments:
No. 251371 12,000
No. 251372
13,200 25,200
Less: Cheques deposited but not realized No. 265971 (50,000)
Balance as per bank statement (overdraft) as at 28th February 2017 (37,100)
The following information is also provided for the month of March 2017:
(1) As per the bank statement for March 2017, the bank has deducted cheque book charges of Rs.3,000/- which
was not recorded in the cash book.
(2) The following cheques which were issued during the month of March 2017 were not presented for payments
by 31st March 2017:
Cheque No. Date of Cheque Amount
251433 27.03.2017 4,500
251439 31.03.2017 12,890
(3) The following cheque deposited during the month of March 2017 has not been realized by 31st March 2017:
Cheque No. Date of Cheque Amount (Rs.)
452316 30.03.2017 12,200
(4) The unrealized deposit of Rs.50,000/- which was included in the bank reconciliation as at 28th February 2017
has been realized during the month of March 2017.
(5) The following cheque which was issued during the month of February 2017 remained unpresented as at 31st
March 2017:

Cheque No. Date of Cheque Amount (Rs.)
251372 17.02.2017 13,200
(6) Favorable balance of the bank column as per the cash book of Siva (Pvt) Ltd. as at 31st March 2017 was
Rs.107,000/-.
You are required to: Prepare the following:
(a) The adjusted Cash Book as at 31st March 2017. (b) The Bank Reconciliation Statement as at 31st March
2017.
Ex.30
The bank column of the cash book, the bank statement for the month of September 2015 and the bank
reconciliation statement prepared as at 31st August 2015 of Hi-Fi (Pvt) Ltd. are as follows:
Hi-Fi (Pvt) Ltd. Cash Book (Bank Column) for the month of September 2015
Date Description Dr (Rs.) Cr (Rs.) Balance (Rs.)
01/09/2015 Balance (375,050)
02/09/2015 Cash deposit 425,500 50,450
05/09/2015 Creditor payment 750131 38,000 12,450
10/09/2015 VAT payment 750132 125,200 (112,750)
12/09/2015 Creditor payment 750133 73,350 (186,100)
15/09/2015 Rent Payment 750134 50,700 (236,800)
15/09/2015 Cash Deposit 120,000 (116,800)
18/09/2015 Debtor Deposit 123,000 6,200
18/09/2015 Cash Deposit 254,000 260,200
21/09/2015 Maintenance 750135 12,000 248,200
Payment
21/09/2015 Creditor Payment 750136 83,000 165,200
25/09/2015 Salaries Direct 223,000 (57,800)
Transfer
30/09/2015 Cheque Deposit 123456 50,000 (7,800)
30/09/2015 Balance (7,800)

Hi-Fi (Pvt) Ltd. Bank Statement for the month of September 2015
Date Description Dr (Rs.) Cr (Rs.) Balance (Rs.)
01/09/2015 Balance - - (172,550)
01/09/2015 Cheque deposit 148350 - 50,000 (122,550)
01/09/2015 Cheque payment 750128 125,000 (247,550)
02/09/2015 Cash deposit 425,500 177,950
11/09/2015 Cheque payment 750132 125,200 52,750
15/09/2015 Cash deposit 120,000 172,750
18/09/2015 Direct deposit Ref. 12465974 123,000 295,750
18/09/2015 Cash deposit 254,000 549,750
22/09/2015 Cheque payment 750135 12,000 537,750
23/09/2015 Direct deposit Ref. 26487582 93,000 630,750
23/09/2015 Cheque payment 750131 38,000 592,750
25/09/2015 Transfer Ref. 32648751 223,000 369,750
30/09/2015 Standing order Loan no. 62587413 57,000 312,750
30/09/2015 Overdraft interest & 2,500 310,250
charges.
30/09/2015 Cheque payment 750133 73,350 236,900
30/09/2015 Cheque payment 750134 50,700 186,200
30/09/2015 Balance 186,200
Hi-Fi (Pvt) Ltd.

Bank Reconciliation Statement as at 31st August 2015
Rs. Rs.
Balance as per Cash Book [Adjusted] 31-08-2015 (Overdraft) (375,050)
Add: Unpresented Cheques:
750120 127,500
750128 125,000 252,500
Less: Unrealized Deposits:
148350 (50,000)
Balance as per Bank Statement 31-08-2015 (Overdraft) (172,550)
You are required to,
Prepare the following:
a. The Adjusted Cash Book for the month of September 2015.
b. The Bank Reconciliation Statement as at 30th September 2015.

BRS MCQS
1. An entity carries out all transactions through a bank account. Its monthly bank statement showed a credit
balance of Rs 270000/= as at 31.01.2012. on this date,cheques deposited but not realized and cheques issued but
not presented for payment were Rs 85000/= and Rs 45000/= respectively. The bank balance (debit) in the books of
the entity as at
31.01.2012 is,
a) Rs 225000
b) Rs 230000
c) Rs 270000
d) Rs 310000
e) Rs 355000
(A/L 2012)
The summary of cheques deposited and issued during the month of march and February 2013 is as follows,
March 2013 February 2013
Description (000) (000)
Cheques deposited in the
bank 1000 900
Cheques issued 750 600
Following informations is also given,

As at As at 28.02.2013
Description 31.03.2013
Deposited cheques issued 750 900
Cheques presented for
payment 600 500
Interest income received by
the bank directly - 50
Bank charges 10 05
Bank account balance (before
adjusting for

interest income and bank 395 100

charges)
Balance as per bank
statement ? 245
Cheques unpresented for payment during the month of February have been presented in march.
1. What is the adjusted balance of the bank account as at 28.02.2013?

a) Rs 145000 c) Rs 200000 e) Rs 345000
b) Rs 190000 d) Rs 290000
2. What is the balance of the bank statement as at 31.03.2013
a. Rs 245000 c) Rs 295000 e)Rs 395000
b. Rs 285000 d) Rs 385000 (A/L 2013)
A business carries out all its transactions through a bank current account.
A summary of the cash transactions as per books of account for the month of March 2017;
DESCRIPTION RS ‘000’
Cash balance as at 01.03.2017 100
Total of cash receipts journal as at 31.03.2017 1200
Total of cash payments journal as at 31.03.2017 900
A summary of bank statement for the month of March 2017 received on 04.04.2017
DESCRIPTION RS ‘000’
Balance as at 01.03.2017 100
Cheques realized 1000
Cheques paid 750
Fixed deposit interest credited directly 200
Standing order payments 50
Fixed deposit interest and standing order payments are recorded in the books after receiving the bank statement.
There were no unrealized or unpresented cheques as at 31.03.2017
3. What is the adjusted balance of the cash account of the business as at 31.03.2017
a. Rs 300000 c) Rs 400000 e) Rs 550000
b. Rs 350000 d) Rs 500000
4. Which of the following statements are correct with respect to cash transactions of this business for the
month of March 2017,
A. The total cash receipts for the month of March 2017 were Rs 1400000
B. The total of cash payments for the month of March 2017 were Rs 950000

C. The unrealized cheques as at 31.03.2017 were Rs 200000

D. The unpresented cheques as at 31.03.2017 were Rs 150000
a. A and B only c) B and D only e) All A,B,C and D

b. A and C only d) C and D only
( A/L 2017)
5. A bank balance of a company as at 31.03.2016 was Rs 450000. It did not agree with the bank statement
balance on this date. The following were revealed in reconciling these balances,
 A debtor has directly deposited a cheque of Rs 80000 in the bank
 Standing order payments made by the bank was Rs 40000
 A cheque of Rs 60000 deposited in the bank has been dishonoured
 A cheque of Rs 20000 deposited in the bank has not yet been realized
 Cheques issued for Rs 30000 have not yet been presented for payment
Calcualte the following as at 31.03.2016,
a. Adjusted bank balance?

b. Bank statement balance? (A/L 2016)
6. The balance of the bank account of a business as at 31.03.2015 was higher than the balance that
appeared in its bank statement. .
(Assume there were no errors either in the bank account of the business or in the bank statement)
State two possible reasons for this difference? (A/L 2015)
7. The bank account balance of a firm as at 31.03.2014 was Rs 680000. However, it did not agree with the
balance of the bank statement on the same date. The following are the reasons for this difference,
A standing order payment of Rs 10000 has not been recorded in the books.
A cheque of Rs 40000 deposited in the bank has not been realized
What is the balance as per bank statement as at 31.03.2014?

What is the bank balance to be stated in the statement of financial position as at 31.03.2014?
( A/L 2014)


Bank Reconciliation Statement-Theory

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Bank Reconciliation Statement |1

December Dr. Rs. December Cr. Rs.

December Dr. Cr. Balance

M. Shafee Ibrahim Advanced Level – Accounting Theory

June 2007 Dr. Rs. June Cr. Rs.

June Dr. Cr. Balance

c) Write the book up to date to make the above into account.

M. Shafee Ibrahim Advanced Level – Accounting Theory

2006 Dr. Cr. Balance

The bank book for March 2006 is:

2006 Dr. Rs. 2006 Cr. Rs.

a) Write up the bank book up to date

M. Shafee Ibrahim Advanced Level – Accounting Theory

2007 Dr. Rs. 2007 Cr. Rs.

The bank statement for the month is:

2007 Dr. Cr. Balance

a) Write the book up to date to take the necessary items to account

M. Shafee Ibrahim Advanced Level – Accounting Theory

Date Details Amount Date Details Amount

Date Description Dr. Cr. Balance

M. Shafee Ibrahim Advanced Level – Accounting Theory

Investment income 21 500 234 200

a) Amended bank account

1/12 b/d 8700 6/12 Little 1745

Date Details Dr Cr Balance

M. Shafee Ibrahim Advanced Level – Accounting Theory

6/12 Hall 155 1/12 b/d 3872

Date Details Dr Cr Balance

16/12 Morris 122 1/12 b/d 2598

Date Details Dr Cr Balance

M. Shafee Ibrahim Advanced Level – Accounting Theory

31/12 BGC: May 929 1545 O/D

Date Particulars Debit (Rs). Credit (Rs). Balance (Rs).

Date Chq.No. Amount Details

M. Shafee Ibrahim Advanced Level – Accounting Theory

Date Description Dr.(Rs) Date Description Chq.No Cr.(Rs)

Date Description Dr. (Rs) Cr. (Rs) Balance (Rs)

You are required to prepare: -

a) An amended bank account as at 31st July 2005

2003 Description Dr.(Rs). Cr.(Rs). Balance (Rs).

M. Shafee Ibrahim Advanced Level – Accounting Theory

Cheque – Sarath 5 400 23 300

Date Description Dr.(Rs) Date Description Chq.No Cr.(Rs)

You are required to: -

a) A standing order to RB insurance Rs.600 had been paid by the bank

M. Shafee Ibrahim Advanced Level – Accounting Theory

Subsequent examination revealed the following

i. Unpresented cheques issued to suppliers Rs.35 500 and Rs.17 500

a) Adjusted bank account

M. Shafee Ibrahim Advanced Level – Accounting Theory

a) Adjusted balance of bank book as at 31.03.2012

a) Make required adjustment in the bank account of the company

M. Shafee Ibrahim Advanced Level – Accounting Theory

The following reasons were revealed subsequently for the difference:

Prepare the following for Vindy High Tea Ltd.:

(1) The bank has charged bank charges of Rs.3,000/-.

(2) Cheque book charges erroneously charged by the bank is Rs.750/-.

M. Shafee Ibrahim Advanced Level – Accounting Theory

Cheque No. Date of Deposit Amount (Rs.)

321154 28.12.2016 156,200

265471 31.12.2016 24,675

Cheque No. Date of Issued Amount (Rs.)