GSEB Class 11 Solutions Chapter 11 Bank Reconciliation Statement

 

Question 1. Write the correct option from those given below each question:
1. Bank reconciliation statement is prepared by .................
(a) bank
(b) trader
(c) bank and trader both
(d) auditor
Answer: (b) trader
In simple words: A bank reconciliation statement is always made by the trader or business, not by the bank or an auditor. It helps them match their records with the bank's records.

Exam Tip: Remember that the bank reconciliation statement is a tool for the business to reconcile its own cashbook with the bank's passbook, hence it's prepared by the trader.

 

Question 1. Write the correct option from those given below each question:
2. Bank reconciliation statement is ................. and not .................
(a) an account, a statement
(b) a subsidiary book, a journal proper
(c) a statement, an account
(d) part of cashbook, part of passbook
Answer: (c) a statement, an account
In simple words: A bank reconciliation is a document that shows how the bank balance in your books matches the bank's records, but it is not a formal accounting account itself.

Exam Tip: Understand the nature of a BRS; it is an analytical statement, not a ledger account, designed to explain differences.

 

Question 1. Write the correct option from those given below each question:
3. Passbook is ...................
(a) abstract of trader's account in the book of bank.
(b) abstract of transactions with bank in the book of trader.
(c) part of bank reconciliation statement.
(d) subsidiary book prepared by trader.
Answer: (a) abstract of trader's account in the book of bank.
In simple words: The passbook shows a summary of a trader's bank account, as recorded in the bank's own books.

Exam Tip: The passbook is the bank's record of a customer's account, while the cashbook is the customer's record of their bank transactions.

 

Question 1. Write the correct option from those given below each question:
4. Main objective of bank reconciliation statement is to reconcile difference between
(a) opening and closing balance of cashbook.
(b) opening and closing balance of passbook.
(c) closing balance as per passbook and cashbook for respective period.
(d) opening balance as per passbook and cashbook for respective period.
Answer: (c) closing balance as per passbook and cashbook for respective period.
In simple words: The main purpose of a bank reconciliation statement is to match differences between the ending balance in the passbook and the ending balance in the cashbook for a specific period.

Exam Tip: Always focus on the closing balances when preparing a BRS, as it aims to explain the discrepancies at a specific point in time.

 

Question 1. Write the correct option from those given below each question:
5. .................... can be known by preparing bank reconciliation statement.
(a) Errors committed in passbook
(b) Errors committed in cashbook
(c) Transactions not recorded in passbook and cashbook
(d) All of the options
Answer: (d) All of the options
In simple words: By making a bank reconciliation statement, you can find out about mistakes in the passbook, errors in the cashbook, and transactions that were missed in either the passbook or cashbook.

Exam Tip: A BRS helps to identify a wide range of discrepancies, including errors made by both the bank and the business, as well as timing differences in recording transactions.

 

Question 1. Write the correct option from those given below each question:
6. A statement of transaction with bank is sent by ................. to .................
(a) trader, customer
(b) trader, bank
(c) bank, trader
(d) customer, trader
Answer: (c) bank, trader
In simple words: The bank provides a statement of transactions to its customer, who is the trader.

Exam Tip: The bank sends the passbook or bank statement to the account holder (trader/customer), detailing all transactions.

 

Question 1. Write the correct option from those given below each question:
7. Bank balance as per cashbook means ................. balance.
(a) debit
(b) credit
(c) debit or credit
(d) debit and credit
Answer: (a) debit
In simple words: When the cashbook shows a bank balance, it usually means money is available, which is recorded as a debit balance.

Exam Tip: For a business, a positive bank balance is an asset, and assets have debit balances in the cashbook.

 

Question 1. Write the correct option from those given below each question:
8. Bank overdraft as per cashbook means ................. balance.
(a) debit
(b) credit
(c) debit or credit
(d) debit and credit
Answer: (b) credit
In simple words: A bank overdraft in the cashbook means the business owes money to the bank, which is shown as a credit balance.

Exam Tip: An overdraft signifies a liability for the business, and liabilities typically have credit balances in the cashbook.

 

Question 1. Write the correct option from those given below each question:
9. Credit balance as per passbook means .................
(a) bank overdraft
(b) bank balance
(c) balance on which bank charges interest from a trader
(d) both (b) and (c)
Answer: (b) bank balance
In simple words: A credit balance in the passbook means the bank holds money for the customer, which is a regular bank balance.

Exam Tip: Remember that for the bank, a deposit from a customer is a liability, hence a credit balance in the passbook represents money held by the bank on behalf of the customer.

 

Question 1. Write the correct option from those given below each question:
10. Debit balance as per passbook means .................
(a) bank overdraft
(b) bank balance
(c) balance on which bank gives interest to a trader
(d) both (a) and (c)
Answer: (a) bank overdraft
In simple words: A debit balance in the passbook indicates that the customer owes money to the bank, which is an overdraft.

Exam Tip: For the bank, an overdraft is an asset (money owed to them), which is why it appears as a debit balance in the passbook.

 

Question 2. Answer the following questions in one sentence:

 

Question 2. (1) By whom and when the bank reconciliation statement is prepared?
Answer: A bank reconciliation statement is prepared by a trader for a specific period or on a particular date.
In simple words: A trader makes the bank reconciliation statement to check their bank records on a certain date or for a set time.

Exam Tip: Always state both "by whom" (trader/business) and "when" (specific date/period) for full marks.

 

Question 2. (2) What is the main objective of preparing a bank reconciliation statement?
Answer: The main purpose of a bank reconciliation statement is to match differences between the ending balance in the passbook and the ending balance in the cashbook for a specific period.
In simple words: The main goal of a bank reconciliation statement is to find and explain the differences between the closing balance shown in the passbook and the cashbook.

Exam Tip: The core objective is to explain discrepancies, not just identify them. Use keywords like "reconcile" and "explain differences."

 

Question 2. (3) Which transactions are recorded in a bank reconciliation statement?
Answer: Transactions that cause a disparity between the bank balance in the cashbook and the balance in the passbook are recorded in a bank reconciliation statement.
In simple words: Only transactions that create a difference between the bank balance in the cashbook and the passbook are included in a bank reconciliation statement.

Exam Tip: Focus on the "difference-causing" aspect of transactions when describing what is included in a BRS.

 

Question 2. (4) Which transactions are not recorded in a bank reconciliation statement?
Answer: Any transaction that does not create a difference between the bank balance in the cashbook and the passbook is not included in a bank reconciliation statement.
In simple words: Transactions that do not cause any difference between the bank balance in the cashbook and the passbook are not put into a bank reconciliation statement.

Exam Tip: Clarify that only unrecorded or incorrectly recorded items and timing differences are relevant for a BRS.

 

Question 2. (5) If total of debit column in passbook and total of credit side in cashbook is more, what is it?
Answer: If the total debit column in a passbook is greater than the total credit column, the resulting difference is considered a bank overdraft. Similarly, if the total credit side in a cashbook is larger than the total debit side, it also signifies a bank overdraft.
In simple words: If the total debit amount in your passbook is more than the total credit amount, or if the total credit amount in your cashbook is more than the total debit amount, both situations mean you have a bank overdraft.

Exam Tip: Clearly distinguish between how a bank overdraft is represented in the passbook (debit balance) versus the cashbook (credit balance).

 

Question 2. (6) What is the other name of bank reconciliation statement?
Answer: Another name for a bank reconciliation statement is simply bank reconciliation.
In simple words: The bank reconciliation statement is also known as bank reconciliation.

Exam Tip: Keep it concise for "one sentence" answers, focusing only on the requested information.

 

Question 2. (7) Give the reason for bank balance means credit balance as per passbook and debit balance as per cashbook.
Answer: For a business, a bank balance represents an asset, so it appears as a debit balance. However, for the bank, this same balance is a liability, meaning it appears as a credit balance in their records.
In simple words: The money you have in the bank is an asset for you, so it's a debit in your cashbook. But for the bank, it's money they owe you, so it's a credit in their passbook.

Exam Tip: Understand the dual aspect of accounting; what is an asset for one party is a liability for the other, leading to opposite debit/credit entries.

 

Question 3. Answer the following questions in two or three sentences: OR Answer in short as asked:

 

Question 3. (1) What is Bank Reconciliation Statement?
Answer: A bank reconciliation statement is a document prepared on a specific date. Its purpose is to identify the causes of differences between the bank balance shown in the cashbook and the balance in the passbook, and then to match these two balances.
In simple words: A bank reconciliation statement is a report created on a specific date. It helps find why the bank balance in a company's records is different from the bank's records, and then brings them into agreement.

Exam Tip: Define both the purpose (identify differences) and the outcome (tallying balances) when explaining a BRS.

 

Question 3. (2) State three reasons for difference between balance as per cashbook and passbook.
Answer: Here are three common reasons why the balances in a cashbook and a passbook might differ:
1. Checks that were deposited or paid into the bank but have not yet been credited.
2. Checks that were written or issued but have not yet been paid by the bank.
3. Transactions that the bank has recorded in the passbook but were not entered into the cashbook.
In simple words: Differences arise because some checks you put in haven't shown up in the bank yet, some checks you wrote haven't been cashed, or the bank recorded something you didn't know about.

Exam Tip: Categorize reasons into timing differences (cheques in transit, unpresented cheques) and errors/omissions by either party for a comprehensive answer.

 

Question 3. (3) Explain the rule of debit and credit to record the difference in the bank reconciliation.
Answer: Both the cashbook and passbook records are checked to discover any discrepancies. If a difference is debited in the original entry, it will then be recorded in the credit column of the bank reconciliation statement. Conversely, if the difference is credited in the initial entry, it will appear in the debit column of the bank reconciliation statement.
In simple words: To record differences, compare the cashbook and passbook. If an item was debited in the original entry, it's credited in the reconciliation; if it was credited, it's debited.

Exam Tip: Emphasize the inverse relationship between the original entry (cashbook/passbook) and its adjustment in the reconciliation statement.

 

Question 3. (4) Cashbook of Ramesh shows bank balance of Rs. 10,000 on 31 - 3 - '16. On 31 - 3 -'16 cheques received from customers of Rs. 5,000 are yet to be deposited with bank while cheques of Rs. 7,000 drawn on 31 - 3 - '16 are not presented for payment. A cheque of Rs. 8,000 was deposited with bank on 29 - 3 -'16 which is dishonoured, which is yet to be recorded in cashbook. What is the bank balance as per passbook on 31 - 3 -'16?
Answer:

In simple words: To find the passbook balance, start with the cashbook balance. Add checks that you wrote but the bank hasn't paid yet. Then, subtract checks you received but haven't deposited and any dishonored checks not yet recorded.

Exam Tip: For problems involving BRS with adjustments, remember to apply the correct additions and subtractions to the starting balance to arrive at the reconciled balance. Pay close attention to items not yet recorded by either party.

 

Question 3. (5) Passbook shows debit balance Rs. 6,000 on 30 - 4 -'16. During April 2016, interest allowed by bank Rs. 200 and bank charges of Rs. 50 collected by the bank are not recorded in cashbook, while cheques of Rs. 4,000 are drawn but not presented for payment. A bills receivable of Rs. 7,000 maturing on 2 - 5 -'16 was sent for collection to bank on 29 - 4 -'16. What is the balance as per cashbook on 30 - 4 -'16?
Answer:

In simple words: Start with the passbook's debit balance (overdraft). Deduct bank interest not in the cashbook, add bank charges not in the cashbook, and deduct checks you wrote but are not yet presented. The final credit balance represents the cashbook overdraft.

Exam Tip: When starting with a passbook overdraft, remember that items which increase your bank balance (like bank interest credited) will be subtracted, and items which decrease it (like bank charges) will be added to reconcile to the cashbook balance.

 

Question 3. (6) Cashbook shows bank balance 3,000 on 1 - 1 -'16 while on 31 - 1 -'16 cashbook shows bank overdraft of Rs. 1,000. Passbook shows bank balance of Rs. 4,000 on 1 - 1 -'16. The bank reconciliation statement prepared for the month of January 2016 will start by which balance and why?
Answer: Since the bank reconciliation statement is being prepared for January, it should begin with the bank overdraft of Rs. 1,000 from the cashbook on January 31, 2016. It's important to remember that if both the starting and ending balances for a specific period are provided, only the closing balance should be used when preparing the bank reconciliation statement.
In simple words: We start the bank reconciliation statement for January 2016 with the cashbook's bank overdraft of Rs. 1,000 from January 31, 2016. Always use the closing balance for the period when both opening and closing balances are given.

Exam Tip: Always use the closing balance of the relevant account (cashbook or passbook) for the reconciliation date to ensure the statement reflects the position at that specific point.

 

Question 4. Cashbook of Shiri Sudhir shows bank balance of Rs. 5,000 on 31 - 12 - '15. Prepare a bank reconciliation statement from the information given below:
(1) A cheque of Rs. 8,000 was deposited with bank on 29 - 12 -'15, but this cheque is not credited in passbook by bank till 31 - 12-'15.
(2) A cheque of Rs. 6,000 was sent for collection to bank on 30 - 12 -'15 which is not collected by bank till 31 - 12 - '15.
(3) A cheque of Rs. 3,000 was issued on 28 - 12 - '15 for payment of electricity bill, which is not debited by bank in passbook till 31 - 12 - '15.
(4) A cheque of Rs. 2,000 was drawn on 27 - 12 - '15 and given to creditor but it is not presented for payment till 31 - 12 -'15.
(5) Interest of Rs. 80 credited in passbook by bank, which is not debited in cashbook.
(6) Bank debited Rs. 100 in passbook for bank charges, which is not credited in cashbook.
Answer:

In simple words: To prepare the reconciliation, list transactions that cause differences between the cashbook and passbook. Items increasing the bank balance from a cashbook perspective are debits, and those decreasing it are credits, leading to a reconciled passbook balance.

Exam Tip: When reconciling from cashbook balance, items increasing the passbook balance (like cheques deposited but not credited) are subtracted, and items decreasing it (like unpresented cheques) are added.

 

Question 4. Explanation: Transaction No.
(1) Since the cheque is not yet credited in the passbook, record this transaction in the credit column of the bank reconciliation statement.
(2) As the cheque sent for collection has not been collected by the bank, this transaction should be entered in the credit column of the bank reconciliation statement.
(3) For the electricity bill cheque issued but not debited in the passbook by the bank, record this transaction in the debit column of the bank reconciliation statement.
(4) When a cheque is drawn and given to a creditor but not yet presented for payment, list this transaction in the debit column of the bank reconciliation statement.
(5) Bank interest credited is revenue for the trader and has not been debited in the cashbook's bank column; therefore, include this transaction in the debit column of the bank reconciliation statement.
(6) Bank charges debited by the bank represent an expense for the trader and have not been credited in the cashbook. Consequently, record this transaction in the credit column of the bank reconciliation statement.
In simple words: The explanation clarifies how each transaction affects the bank reconciliation statement. If a cheque is not credited by the bank, it's a credit entry. If a cheque is issued but not debited by the bank, it's a debit entry. Bank interest increases the balance (debit), and bank charges decrease it (credit).

Exam Tip: Always analyze the impact of each transaction from the perspective of which record (cashbook or passbook) needs adjustment and in which direction (increase or decrease) to reconcile the balances.

 

Question 5. Cashbook of Naresh shows credit balance of bank Rs. 12,000 as on 31 -3 -'16, which does not tally with the balance as per passbook. Following information is obtained while comparing the passbook and cashbook. Prepare a bank reconciliation statement.
(1) A cheque of Rs. 10,000 was deposited with hank on 28-3-'16 which is not yet recorded in passbook by bank.
(2) Interest credited by bank Rs. 160 on 30 - 3 - '16 is not recorded in cashbook.
(3) A customer has deposited Rs. 10,000 directly in bank account, which is not known till 31 -3-'16.
(4) Cheque deposited with bank, but not recorded in cashbook Rs. 8,000.
(5) Cheque drawn and paid by bank but not recorded in cashbook Rs. 6,000.
(6) A bill receivable of Rs. 3,000 discounted with bank is dishonoured and bank has recorded the amount in passbook including noting charges of Rs. 40, which is not known to Naresh.
(7) Total of receipt side of cashbook cast short by Rs. 2,000.
(8) cheque drawn but not present for payment Rs. 1,000.
(9) Cheque deposited but not credited in bank Rs. 1,500.
(10) Bank has debited commission Rs. 80 in passbook, which is not recorded in cashbook.
Answer:

In simple words: To create the reconciliation, adjust the cashbook's credit balance (overdraft) by adding or subtracting items that cause differences, such as uncredited checks, bank interest, direct deposits, or dishonored bills. This process will lead to the passbook's debit balance (overdraft).

Exam Tip: When starting with an overdraft (credit balance in cashbook), cheques deposited but not credited reduce the overdraft, while unpresented cheques increase it. Carefully consider the impact of each adjustment on the initial overdraft balance.

 

Question 6. Bank balance as per passbook of Gaurang on 31 - 3 -'16 was Rs. 10,000 which does not tally with the bank balance as per cashbook. Following information is obtained while comparing the passbook and cashbook. Prepare a bank reconciliation statement.
(1) A cheque of Rs. 7,000 is drawn and recorded in cashbook but not given to creditor.
(2) A cheque of Rs. 12,000 was deposited with bank on 29 - 3 - '16, which is credited by bank on 1-4-'16.
(3) Bank has paid Rs. 6,000 for insurance premium, which is known to Gaurang on 1 - 4 - '16.
(4) A customer has deposited directly with bank Rs. 5,000, which is not recorded in cashbook.
(5) Bank has credited interest Rs. 200 and recorded in passbook, but not recorded in cashbook.
(6) A cheque of Rs. 6,700 deposited with bank is dishonoured, of which the information is received on 1-4-'16.
(7) Cheques drawn for Rs. 18,000 but out of these cheques of Rs. 6,000 were presented for payment till 31 - 3 - '16.
(8) Cheques of Rs. 32,000 were deposited with bank, out of which cheques of Rs. 7,000 are credited in passbook till 31 - 3 -'16.
(9) A cheque of Rs. 1,800 was deposited with bank, which is not recorded in cashbook.
(10) Bank has debited Rs. 20 in passbook for bank charges, which is not recorded in cashbook.
Answer:

In simple words: Begin with the passbook balance. Add items that increase the cashbook balance but aren't yet in the passbook, and subtract items that decrease it. This will help you arrive at the cashbook balance.

Exam Tip: When reconciling from the passbook balance, carefully consider each item's impact on the cashbook. For example, cheques drawn but not given to a creditor should be added back to the passbook balance to arrive at the cashbook balance.

 

Question 7. Cashbook of Aditya shows bank balance of Rs. 9,000 on 31 - 10 - '15, which does not tally with the bank balance as per passbook. Prepare Aditya's bank reconciliation statement from the information given below:
(1) Cheques of Rs. 51,000 were deposited, out of which cheques of Rs. 41,000 were credited in bank till 31-10-'15.
(2) A cheque of Rs. 2,300 is drawn and recorded in cashbook but not yet given to creditor.
(3) Bank has paid Rs. 1,700 for insurance premium through electronic clearing service, which is not recorded in cashbook.
(4) A customer has deposited Rs. 3,200 directly in Aditya's bank account, which is known to him on 2-11-'15.
(5) Bank charges recorded by bank Rs. 70, is recorded twice in cashbook by mistake.
(6) A cheque of Rs. 6,750 deposited with bank on 27 - 10 -'15 is dishonoured, the information of which is received by Aditya on 1 - 11 - '15.
(7) Cheques of Rs. 4,780 were drawn out of which cheque of Rs. 1,770 was presented in bank on 2-11-'15.
(8) A cheque of Rs. 1,320 was deposited in the bank but it is not recorded in the cashbook. This cheque is not collected by bank till 31 - 10 -'15.
(9) Bank has credited Rs. 130 for interest and debited Rs. 60 for bank charges in passbook, which is not recorded in cashbook.
(10) Total of receipt side of cashbook is over cast by Rs. 900.
(11) Bills receivable of Rs. 1,200 discounted with bank, is dishonoured on 28 - 10 -'15 and bank debited this amount with the noting charges of Rs. 20 but entry for dishonour is not made in cashbook till 31 - 10-'15.
(12) Bills payable of Rs. 700 maturing after one month was retired by bank under rebate of Rs. 30 on 30 - 10 -'15, which is not recorded in cashbook.
Answer:

In simple words: To prepare the bank reconciliation statement for Aditya, start with the cashbook balance. Adjust for items like uncredited cheques, direct bank payments, dishonored bills, and bank charges or interest not yet recorded. The goal is to reach the passbook's overdraft balance.

Exam Tip: For complex BRS questions, carefully read each transaction and determine its impact on the starting balance (cashbook or passbook) and which column (debit or credit) it should be recorded in based on the reconciliation's objective.

 

Question 8. Prepare a bank reconciliation statement of Priyal for December, 2015 from the information given below:
(1) Bank overdraft as per cashbook (Dt. 31 - 12 - '15) Rs. 710.
Bank overdraft as per passbook (Dt. 1 - 12- '15) Rs. 261.
(2) Information of cheques deposited and credited in passbook is as under:

(3) Information of cheques drawn and presented in bank is as under:

(4) Interest Rs. 400 credited by bank in passbook is recorded on payment side in cashbook by mistake.
(5) Barak has collected dividend of Rs. 360 on behalf of Priyal which is not recorded in cashbook.
(6) Bank has recorded interest on overdraft Rs. 120 in passbook but this transaction is no recorded in cashbook.
(7) Sales made by cheque Rs. 2,300 recorded by bank in personal account of Priyal.
(8) Bank has reversed bank charges of Rs. 380 on request of Priyal, which is not recorde in cashbook.
(9) Signature is forgotten in cheque drawn and hence the cheque of Rs. 2,000 is returned by bank.
(10) Bank has collected bill of Rs. 3,000 sent to bank for collection and charged Rs. 100 for the same, this transaction is not recorded in cashbook.
Answer:In simple words: To prepare Priyal's bank reconciliation, start with the cashbook overdraft. Adjust for checks deposited but not credited, checks drawn but not presented, bank interest and charges not recorded, and other unique transactions. The aim is to reconcile this to the passbook balance.

Exam Tip: When reconciling from a cashbook overdraft, items that increase your bank balance (like cheques drawn but not presented) are added, and items that decrease it (like cheques deposited but not yet credited) are subtracted, leading to the passbook balance.

 

Question 9. Prepare bank reconciliation statement of Dharamsinh as on 29 - 2 - '16:
(1) Cheque deposited but not collected Rs. 5,200.
(2) Cheque drawn but not presented in bank, Rs. 37,000.
(3) Cheque received is recorded in cashbook but not sent for deposit in bank, Rs. 9,900.
(4) Cheque deposited with bank is dishonoured, which is not recorded in cashbook, Rs. 1,650.
(5) Interest on investment collected by bank Rs. 1,900.
(6) Demate charges paid by bank Rs. 1,320 as per instruction of Dharamsinh, which is not recorded in cashbook.
(7) Cash purchase, recorded on payment side of cashbook in bank column, Rs. 8,300.
(8) Cheque drawn but not given to creditor Rs. 4,160.
(9) Cheque drawn by Dharamsinh from his personal account, debited by bank in business bank account Rs. 3,340.
(10) Payment side of bank column in cashbook is overcast Rs. 1,180.
(11) Cheque drawn Rs. 6,400 dishonoured ora technical ground, dishonour of cheque is not recorded in cashbook.
(12) Interest credited by bank Rs. 1,240 and commission debited by bank Rs. 1,160, not recorded in cashbook.
Passbook of Dharamsinh showed overdraft of Rs. 4,000 on 29 - 2 - '16.
Answer:

In simple words: Starting with the passbook overdraft, adjust for items like uncollected checks, unpresented checks, bank collections, and errors in recording. This detailed process helps to reconcile the bank's record with the business's cashbook.

Exam Tip: When starting with a passbook overdraft, items that increase the cashbook balance (like cheques drawn but not presented) are added to the debit side, and items that decrease it (like uncollected cheques) are added to the credit side to reconcile to the cashbook overdraft.

 

Question 10. Prepare Bank Reconciliation Statement of Mecwan for May, 2016 from following information:

Answer:In simple words: To prepare Mecwan's bank reconciliation for May 2016, carefully compare the cashbook and passbook entries. Identify all checks deposited but not credited, checks issued but not presented, direct customer deposits, and bank charges or debits not yet recorded in the cashbook. Adjust these differences from the cashbook balance to arrive at the passbook balance.

Exam Tip: When given both cashbook and passbook details, methodically identify matching entries and then list the unmatched ones as reconciliation items. Ensure that you correctly categorize them as increasing or decreasing the balance depending on your starting point (cashbook or passbook).

 

Question 11. Prepare Bank Reconciliation Statement of Sanjay from following information:
(1) Bank overdraft as per passbook (Dt. 31 – 12 – '15) Rs. 710.
Bank overdraft as per passbook (Dt. 1 – 12- '15) Rs. 261.
(2) Information of cheques deposited and credited in passbook is as under:
Amount Rs. | Date of cheque deposited in Bank | Date of cheque credited in Passbook
2,300 | 15-12-'15 | 18-12-'15
7,200 | 17-12-'15 | 17-12-'15
4,600 | 27-12-'15 | 1-1-'16
1,500 | 30-12-'15 | 2-1-'16
(3) Information of cheques drawn and presented in bank is as under:
Amount Rs. | Date of cheque drawn | Date of cheque presented in Bank
8,200 | 26-12-'15 | 28-12-'15
9,300 | 28-12-'15 | 1-1-'16
7,100 | 29-12-'15 | 31 – 12 – '15
1,300 | 31-12-'15 | 2-1-'16
(4) Interest 400 credited by bank in passbook is recorded on payment side in cashbook by mistake.
(5) Barak has collected dividend of Rs. 360 on behalf of Priyal which is not recorded in cashbook.
(6) Bank has recorded interest on overdraft Rs. 120 in passbook but this transaction is no recorded in cashbook.
(7) Sales made by cheque Rs. 2,300 recorded by bank in personal account of Priyal.
(8) Bank has reversed bank charges of Rs. 380 on request of Priyal, which is not recorde in cashbook.
(9) Signature is forgotten in cheque drawn and hence the cheque of Rs. 2,000 is returned by bank.
(10) Bank has collected bill of Rs. 3,000 sent to bank for collection and charged Rs. 100 for the same, this transaction is not recorded in cashbook.
Answer:

Exam Tip: For bank reconciliation statements, clearly identify starting balances and correctly classify each transaction as an addition or subtraction based on whether it impacts the cashbook or passbook balance first.

 

Question 12. Cashbook of Balram shows debit balance of Rs. 40,000 on 30 – 4 – '16, which is different from balance as per passbook. From the following information prepare a Rectified Cashbook and a Bank Reconciliation Statement as on 30 – 4 – '16.
2016
April
1 Cheque deposited but not credited by bank Rs. 28,000.
4 Cheque issued but not presented by bank Rs. 32,000.
6 Cheque deposited by Bunty directly in bank account Rs. 12,000.
6 Company has credited dividend of Rs. 8,000 in Balram's bank account through National Electronic Fund Transfer, which is not recorded in cashbook.
10 Bank has credited Rs. 800 for bank interest, which is not recorded in cashbook.
13 Bills of Prabhashankar discounted with bank is dishonoured and bank has debited Rs. 15,300 including noting charges which is not known to Balram.
20 A cheque of Rs. 12,000 issued to Seema on 28-4-'16, which is paid by bank on 2 – 5 – '16.
22 A cheque of Rs. 6,000 received from Bhargav is deposited with bank but not recorded in cashbook.
25 Payment side of cashbook was overcast by Rs. 4,000 while carry forwarding the balance of cashbook on next page.
29 A cheque of Rs. 12,000 was issued to BSNL for telephone bill, which is paid by bank, on 30 – 4 – '16 but it is recorded in cashbook by Rs. 1,200.
Answer:

Exam Tip: When preparing a rectified cashbook, ensure all errors affecting the cashbook are corrected before reconciling the final balance with the passbook.

 

Question 13. Ambica Electronics is having two accounts with Bank of Baroda. Account no. 100 and account no. 101. Cashbook of account no. 100 shows balance of Rs. 9,000, while cashbook of account no. 101 shows bank overdraft of Rs. 6,000 on 31 – 3 – '16. Prepare bank reconciliation statement of Ambica Electricals for account no. 100 for the month of March, 2016.
(1) A cheque of Rs. 10,000 in account no. 100 and cheque of Rs. 8,000 in account no. 101 were deposited. Bank has credited amount of account no. 100 in account no. 101 and the amount of account no. 101 in the account of no. 100 by mistake.
(2) A cheque of Rs. 3,000 was issued on account no. 101 which is not yet presented for payment in bank.
(3) Cheques totalling Rs. 9,000 were deposited in account no. 100 out of a cheque of Rs. 2,500 was credited by bank in account no. 101 by mistake.
(4) A cheque of Rs. 2,600 was issued on account no. 101, payment of which is debited by bank in account no. 100.
(5) A customer has deposited directly Rs. 2,000 and Rs. 800 in account no. 101 and account no. 100 respectively, which is not recorded in cashbook.
(6) Bank has debited Rs. 300 for bank charges in account no. 100 and credited Rs. 170 for bank interest in account no. 101, which is not recorded in cashbook.
(7) Cheques of Rs. 7,000 were issued on account no. 100, out of which cheques of Rs. 1,200 are not yet presented for payment.
Answer:

Explanation:
(1) Transaction no. 2 will not be recorded because it is issued from A/c no. 101, whereas this is a B.R.S. for A/c no. 100.
(2) Similarly, in transaction no. 6, interest credited by bank in A/c no. 101 will not be taken into consideration for the preperation of a B.R.S. of A/c no. 100.

Exam Tip: Always make sure to consider transactions only for the relevant account number when preparing a bank reconciliation statement for multiple accounts.

 

Question 14. Cashbook of Paresh shows bank balance of Rs. 10,000 on 31 – 3 – '15. This balance does not tally with bank balance as per passbook. From the following information prepare bank reconciliation statement for March, 2015:
(1) Cheques of Rs. 30,000 were deposited in bank during the month of March out of which cheques of Rs. 16,000 were credited in bank on 2nd April.
(2) Cheques of Rs. 16,000 were drawn during the month of March out of which a cheque of Rs. 10,000 was presented for payment till 31st March.
(3) During the month of March, bank paid Rs. 5,000 for personal income tax out of bank account of business, which is not recorded in cashbook.
(4) On 31st March, bank has credited Rs. 120 for interest and debited Rs. 50 for bank charges, which are not recorded in cashbook.
(5) A cheque of Rs. 1,650 received on 30th March is not deposited with bank.
(6) A debtor has directly deposited Rs. 680 in bank, which is not recorded in cashbook.
(7) Cash sales of Rs. 2,000 is recorded in cashbook in bank column.
(8) A bills of Rs. 3,600 discounted in February 2015 was dishonoured on maturity date during the month of March and bank has recorded the same in passbook including noting charges of Rs. 100, which is not recorded in cashbook.
(9) Rs. 600 received for dividend on shares is recorded in passbook but not recorded in cashbook.
(10) Bank has paid 4,500 for insurance premium as per instruction of Paresh, which is not recorded in cashbook.
Answer:

Exam Tip: For problems involving many adjustments, systematically go through each item, identify which book (cashbook or passbook) needs correction, and apply the change before finalizing the reconciliation statement.

 

Question 15. From the following information, prepare bank reconciliation statement of Margi :
(1) Debited in passbook, which is not recorded in cashbook:
(Divyang Rs. 1,600 + Bank commission Rs. 20 + Aahna Rs. 500)
(2) Dividend, which is not recorded in cashbook
(3) Cheques deposited, but not credited in bank:
(Gaurang Rs. 1,900 + Bhupendra Rs. 2,400 + Chandni Rs. 3,200 + Meera Rs. 600)
(4) Cheques drawn but not presented for payment:
(Premal Rs. 700 + Sales India Rs. 2,000 + Kamal Rs. 400 + Bank of India Rs. 5,000)
Answer:

Exam Tip: When given multiple transaction details and initial cashbook/passbook balances, remember to meticulously cross-reference each entry to identify discrepancies for an accurate reconciliation.