DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name of the Participant : M. Ramakrishna
Designation : Head of Section
Branch : Commercial & Computer Practice
Institute : Govt. Polytechnic for women,
Bheemunipatnam
Year/Semester : I Year
Subject : Accountancy-I
Sub-code : CCP-102
Topic : Bank Reconciliation Statement
Sub Topic : Exercise on
Bank Reconciliation Statement
Duration : 50 Minutes
Teaching aids : Power Point Presentation

CCP102.83 1
Objectives
On completion of this period, you would be able
to:
• Prepare Bank Reconciliation Statement
 Know causes for disagreement of Cash Book
and Pass Book balances
 Analyze the causes
 Compare the entries
 Adjust the entries in Bank Reconciliation
Statement

CCP102.83 2
Recap

In the last class, we discussed about

Preparation of Bank Reconciliation Statement
 Causes of disagreement between cash book
and pass book balance
 Comparison of balances
 Reconciliation of balances

CCP102.83 3
 Exercise
 Prepare Bank Reconciliation Statement as on 31-12-07
 Bank balance as per pass book Rs.15,200/-
 Bank charges debited in the pass book Rs.130/-
 Cheques issued but not presented for payment
Rs.2,000/-
 Cheques deposited but not credited/recorded in pass
book Rs.1,700/-
 Cheques issued for Rs.220/- has been recorded in cash
book as cheque received and deposited
 Amount deposited in Bank Rs.364/-, has been recorded
twice in the cash book
 Cheque issued for Rs.9/- been wrongly posted as 99/-

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Bank charges debited in pass book
Rs.130/-

 Bank charges Rs.130/-

 Banker debits pass book
 Trader credits cash book only after
receiving information

CCP102.83 5
On comparison of balances
as on 31-12-07

 Pass book shows lower balance

 Cash book shows higher balance

CCP102.83 6
To reconcile the balances in
Bank Reconciliation Statement as per
pass book balance

 Add

CCP102.83 7
Bank Reconciliation Statement as on
31-12-2007
Particulars Amount Amount
Rs. Rs.
Balance as per pass book as 15,200
on 31-12-07
Add: 1. Bank charges debited
in pass book only 130
Less:

CCP102.83 8
Cheques issued but not presented
for payment Rs.2000/-
 Cheques issued Rs.2,000/-
 Trader credits cash book
 But not presented for payment

CCP102.83 9
On comparison of balances
as on 31-12-07

 Cash book shows lower balance

 Pass book shows higher balance

CCP102.83 10
To reconcile the balances in
Bank Reconciliation Statement as
per pass book balance

 Less

CCP102.83 11
Bank Reconciliation Statement as on
31-12-2007

Particulars Amount Amount

Rs. Rs
Balance as per pass book as on 31-12- 15,200
07
Add: 1. Bank charges debited in pass 130
book only

Less: 1. Cheques issued, but not 2,000

chashed

CCP102.83 12
Cheques Rs.1,700 deposited not
recorded in pass book

 Cheques Rs.1,700/- deposited

 Trader debits cash book
 Not recorded in pass book

CCP102.83 13
On comparison of balances
as on 31-12-07

 Cash book shows higher balance

 Pass book shows lower balance

CCP102.83 14
To reconcile the balances in
Bank Reconciliation Statement as
per pass book balance

 Add

CCP102.83 15
Bank Reconciliation Statement as on
31-12-2007
Particulars Amount Amount
Rs. Rs
Balance as per pass book as on 31-12- 15,200
07
Add: 1. Bank charges debited in pass 130
book only 1,700
2. Cheques deposited, but not
recorded in pass book
Less: 1. Cheques issued, but not
chashed 2,000

CCP102.83 16
Cheques issued for Rs.220/-,
recorded in cash book as cheque
received and deposited

 Cheques issued Rs.220/-

 Trader debits cash book as cheque received and
deposited
 Banker debits pass book

CCP102.83 17
On comparison of balances
as on 31-12-07

 Cash book shows higher balance

 Pass book shows lower balance

CCP102.83 18
To reconcile the balances in
Bank Reconciliation Statement as per
pass book balance

 Add

CCP102.83 19
Bank Reconciliation Statement as on
31-12-2007

Particulars Amount Amount

Rs. Rs.

Balance as per pass book as on 31-12-07 15,200

Add: 1. Bank charges debited in pass book 130

only
2. Cheques deposited, but not 1,700
recorded in pass book
3. Wrong posting (Rs.220 x 2) 440
Less: 1. Cheques issued, but not
cashed 2,000

CCP102.83 20
Amount deposited Rs.364/-, recorded
twice in cash book
 Amount deposited Rs.364/-
 Trader debited twice in cash book
 Banker credited once in pass book

CCP102.83 21
On comparison of balances
as on 31-12-07

 Cash book shows higher balance

 Pass book shows lower balance

CCP102.83 22
To reconcile the balances in
Bank Reconciliation Statement as per

pass book balance

 Add

CCP102.83 23
Bank Reconciliation Statement as on
31-12-2007
Particulars Amount Amount
Rs. Rs.
Balance as per pass book as on 31-12-07 15,200
Add: 1. Bank charges debited in
pass book only 130
2. Cheques deposited, but
not recorded in pass book 1,700
3. Wrong posting(Rs.220x2)
4. Amount deposited in bank 440
wrongly posted twice in 364
cash book
Less: 1. Cheques issued, but not chashed 2,000

CCP102.83 24
Cheques issued for Rs.9/- posted in
cash book as Rs.99/-

 Cheques issued for Rs.9/-

 Trader credits cash book with Rs.99/-

CCP102.83 25
On comparison of balances
as on 31-12-07

 Cash book shows lower balance

 Pass book shows higher balance

CCP102.83 26
To reconcile the balances in Bank
Reconciliation Statement as per
Pass book balance

 Less

CCP102.83 27
Bank Reconciliation Statement as on
31-12-2007
Particulars Amount Amount
Rs. Rs.
Balance as per pass book as on 31-12-07 15,200
Add: 1. Bank charges debited in
pass book only 130
2. Cheques deposited, but
not recorded in pass book 1,700
3. Wrong posting(Rs.220x2)
4. Amount deposited in bank 440
wrongly posted twice in 364 2,634
cash book 17,834
Less: 1. Cheques issued, but not chashed 2,000
2. Excess posting on the credit side 90 2,090
of cash book
Balance as per cash book as on 31-12-07 15,744
CCP102.83 28
Summary

 In this class, we discussed about

 Preparation of Bank Reconciliation Statement

 the causes for disagreement of Cash Book

and Pass Book balances

 analyzing the causes
 comparing the entries
 adjusting the entries in Bank Reconciliation
Statement

CCP102.83 29
 Assignment
 Prepare Bank Reconciliation Statement as on 31-12-07
 Bank balance as per cash book Rs.13,000/-
 Cheques amounting Rs.1,800/- deposited on 27-12-07
out of which only Rs. 600/- cheque collected before 31-
12-07
 Bank paid only Rs.800/- from the cheques issued
Rs.1,600/-.
 Interest on investments credited pass book only Rs.75/-
 Cheques issued for Rs.320/- recorded as Rs.230/- in
cash book
 Cheque sent for collection Rs.120/-, dishonoured, this
was not recorded in cash book
 (Balance as per Pass Book: Rs.12,450)

CCP102.83 30