PRACTICE QUESTIONS BANK RECONCILIATION STATEMENT

1. From the following particulars, prepare Bank Reconciliation Statement showing the balance as per cash book as on Dec 31, 2005. i) Out of cheques of Rs 9,000 paid on Dec 29th, Rs 4,000 appear to have been credited in the pass book on January 2, 2006 ii) I had issued cheques in Dec 2005 amounting in all to Rs 16,000 out of which I find that cheques for Rs 7,000 have been cashed in the same month, a cheque of Rs 5,000 cashed on January 3, 2006 and the rest have not been presented at all. iii) My bankers have given me a wrong credit in my Joint Account with my wife, in respect of a cheque of Rs 2,000 paid into my personal account. iv) Rs 1,000 for interest on overdraft charged in the pass book on Dec 31 has been entered in my cash book on January 4, 2006. v) My pass book shows a credit of Rs 1200 to my account being interest on my securities collected by my bankers. vi) The bank balance as per my pass book showed an overdraft of Rs 19,000.

2. From the following particulars of M/s Hemant ascertain the bank balance that would appear in the bank pass book: i) ii) Balance as per cash book as on 31-3-2002 Rs 12,000 Out of the total cheques amounting to Rs 10,000 drawn, cheques aggregating Rs 3,000 were encashed in March 2002, cheques aggregating Rs 4,000 were enchased in April 2002 and the rest have not been collected at all. iii) Out of the total cheques amounting to Rs 5,000 deposited, cheques aggregating Rs 1,500 were credited in March 2002, cheques aggregating Rs 2000 were credited in April 2002 and the rest have not been collected at all. iv) The bank has debited Rs 100 as bank charges and has credited Rs 200 on account of interest.

3. On Dec 31, 2009, the pass book of a merchant shows the credit Balance to be Rs 3,357 i) The cheques and drafts sent to the bank but not collected and credited amounted to Rs 790 and three cheques drawn for Rs 300, Rs 150 and Rs 200 respectively were not presented for payment till January 31st next year. ii) Bank has paid a bills payable amounting to Rs 1000 but it has not been entered in the Cash book and a bills receivable of Rs 500 which was discounted with the bank was dishonored by the drawer on due date. iii) The bank has charged Rs 13 as its commission for collecting outstation cheques and has allowed interest Rs 10 on traders balance. Prepare a Bank Reconciliation Statement and show the balance as shown in the cash book.

4. Prepare a Bank Reconciliation Statement as on June 30, 2002 for XYZ Ltd. From the information given below: i) ii) iii) iv) v) vi) Bank overdraft as per cash book on June 30, 2002 Cheques issued on June 20, 2002 but not yet presented Cheques deposited but not yet credited by bank Bills for collection not advised by bank but credited to the account Interest debited by bank on June 27, 2002 but no advice received Subsidy received from the authorities by bank on our behalf, credited to the account vii) viii) Amount wrongly debited by the bank Amount wrongly credited by the bank 22,000 2,400 5,000 1,10,450 15,000 22,750 47,200 12,115