Maharashtra Board Class 11 Commerce BK Chapter 6 Bank Reconciliation Statement Solutions

Bank Reconciliation Statement 11th BK Commerce Chapter 6 Solutions Maharashtra Board

Balbharti Maharashtra State Board Bookkeeping and Accountancy 11th Solutions Chapter 6 Bank Reconciliation Statement Textbook Exercise Questions and Answers.

Class 11 Commerce BK Chapter 6 Exercise Solutions

1. Answer In One Sentence.

 

Question 1. Who prepares a bank Pass Book?
Answer: The Bank passbook is prepared by the bank.
In simple words: The bank itself prepares and maintains the passbook to record all transactions for a customer's account.

🎯 Exam Tip: Remember that the passbook is a bank document, reflecting the bank's record of your account, not your own. This is a fundamental concept in bank reconciliation.

 

Question 2. What is a pay-in-slip?
Answer: Pay-in-slip is the slip that is filled when the bank account holder deposits a cheque or cash into his bank account.
In simple words: A pay-in-slip is a form you fill out to tell the bank you're depositing money or a cheque into your account.

🎯 Exam Tip: Understanding the function of a pay-in-slip is crucial for recognizing how deposits are initiated and recorded in the cash book and passbook.

 

Question 3. What is a bank overdraft?
Answer: The amount withdrawn by the account holder from his current account in excess of the balance standing in that account up to, specified limit is known as bank overdraft.
In simple words: A bank overdraft is when you withdraw more money from your current account than you actually have, with the bank's permission, up to a certain limit.

🎯 Exam Tip: Bank overdraft represents a liability for the account holder and is a key concept when reconciling balances, as it indicates a negative bank balance from the customer's perspective.

 

Question 4. What is a withdrawal slip?
Answer: It is a document/form, which is used by the savings account holder for withdrawing cash from his bank account.
In simple words: A withdrawal slip is a form used by savings account holders to take out cash from their bank account.

🎯 Exam Tip: Distinguish between a withdrawal slip and a cheque; the former is typically used for self-withdrawals from savings accounts, often requiring a passbook presentation.

 

Question 5. Who sends the bank statement?
Answer: A bank statement is sent by the Bank manager to the account holder informing about debit or credit given by the bank. Generally, it is issued every i.e. month. It gives details information about bank deposits and withdrawals etc.
In simple words: The bank sends a bank statement to its customers, usually monthly, to detail all their account transactions, including deposits, withdrawals, and bank charges.

🎯 Exam Tip: The bank statement is the bank's record of the customer's account and is essential for comparison with the cash book to prepare a Bank Reconciliation Statement.

 

Question 6. What does a debit balance in Cash Book represent?
Answer: The debit balance of the cash Book indicates a positive Bank balance as per Cash Book.
In simple words: A debit balance in the cash book means you have a positive amount of money in your bank account, from your company's perspective.

🎯 Exam Tip: In the cash book, a debit balance in the bank column is favorable, representing assets. This is the opposite of a passbook, where a debit balance is unfavorable (overdraft).

 

Question 7. Who prepares the Bank Reconciliation Statement?
Answer: A Businessman, trader, or accountant prepares Bank Reconciliation Statement at the end of every month.
In simple words: A Bank Reconciliation Statement is prepared by the business owner or their accountant to match their cash book records with the bank's statement, typically at month-end.

🎯 Exam Tip: It is crucial to remember that the Bank Reconciliation Statement is prepared by the business, not the bank, to identify and explain discrepancies between their records.

 

Question 8. What does the debit balance in Pass Book represent?
Answer: The debit balance of Passbook represents Overdraft as per passbook.
In simple words: A debit balance in your passbook indicates that you have withdrawn more money than you deposited, resulting in a bank overdraft (a negative balance).

🎯 Exam Tip: A debit balance in the passbook is unfavorable (overdraft) because the bank considers the customer's account a liability, and a debit reduces a liability. This is the inverse of the cash book's debit balance.

 

Question 9. On which side is interest on bank deposit recorded in Pass Book?
Answer: Interest on bank deposits is recorded on the credit side of the passbook.
In simple words: When the bank pays you interest on your deposits, it increases your account balance, so it's shown on the credit side of your passbook.

🎯 Exam Tip: Any increase in the customer's bank balance, from the bank's perspective, is a credit entry in the passbook, as the customer's account is a liability for the bank.

 

Question 10. Why is Bank Reconciliation Statement prepared?
Answer: A bank reconciliation statement is prepared to disclose the causes of the difference between the balances shown by the cash book and passbook.
In simple words: The Bank Reconciliation Statement is made to find out and explain why the cash balance in a company's books doesn't match the balance shown on the bank statement.

🎯 Exam Tip: The primary purpose of BRS is to identify timing differences, errors, and omissions, ensuring both the business's cash book and the bank's records are accurate or at least understood.

2. Give One Word/Term/Phrase Which Can Substitute Each Of The Following Statements:

 

Question 1. The account on which overdraft facility is allowed by the bank.
Answer: Current Account
In simple words: The type of bank account that typically allows for an overdraft facility is a Current Account.

🎯 Exam Tip: Overdraft facilities are usually granted on current accounts to businesses for managing short-term liquidity needs, unlike savings accounts.

 

Question 2. Extract of ledger account of the account holder in the books of the bank.
Answer: Pass Book
In simple words: The passbook is a physical record provided by the bank, showing a summary of a customer's account transactions.

🎯 Exam Tip: The passbook is essentially the customer's copy of their bank ledger account, showing the bank's record of their transactions.

 

Question 3. Alphanumeric code that facilitates electronic funds transfer in India.
Answer: IFSC (Indian Financial System Code)
In simple words: IFSC is a unique code for banks and branches in India, used for online money transfers like NEFT and RTGS.

🎯 Exam Tip: IFSC is critical for secure and accurate digital banking transactions within India, ensuring funds reach the correct recipient branch.

 

Question 4. Statement showing the causes of disagreement between the balance of Cash Book and Pass Book.
Answer: Bank Reconciliation Statement
In simple words: This statement explains all the differences between what your business records say about cash and what the bank says.

🎯 Exam Tip: Always remember that the BRS is the tool used to bridge the gap and clarify disparities between the business's and the bank's records.

 

Question 5. Debit balance in Pass Book.
Answer: Overdraft as per Pass Book
In simple words: A debit balance in the passbook means the account holder owes money to the bank, which is an overdraft.

🎯 Exam Tip: It's vital to understand the "reverse" nature of debit/credit balances in a passbook compared to a cash book. Debit in Passbook is unfavorable.

 

Question 6. A form which is filled for depositing cash or cheque into bank.
Answer: Pay-in-slip
In simple words: You use a pay-in-slip when you want to put cash or a cheque into your bank account.

🎯 Exam Tip: Accurate completion of a pay-in-slip is essential to ensure deposits are correctly credited to the intended account and for reconciliation purposes.

 

Question 7. The left-hand side of Pay-in-slip.
Answer: Counterfoil
In simple words: The counterfoil is the part of the pay-in-slip that you keep as proof of your deposit.

🎯 Exam Tip: The counterfoil acts as the immediate evidence of a deposit for the customer until the transaction is reflected in their passbook or bank statement.

 

Question 8. Credit balance in Cash Book.
Answer: Overdraft as per Cash Book
In simple words: A credit balance in the cash book's bank column indicates that the business has an overdraft, meaning it owes money to the bank.

🎯 Exam Tip: A credit balance in the cash book is generally an unfavorable position (bank overdraft), contrasting with a debit balance which is favorable.

 

Question 9. A book maintained by traders to record banking transactions.
Answer: Cash Book
In simple words: The Cash Book is where businesses keep a daily record of all money going into and out of their bank account.

🎯 Exam Tip: The bank column of the cash book is the primary source of information for a business's bank transactions, which is then compared with the bank statement.

 

Question 10. Excess of bank deposits over withdrawals by a businessman in bank current account.
Answer: Bank Balance (favourable balance)
In simple words: When a business has deposited more money than it has withdrawn, it results in a positive or 'favourable' bank balance.

🎯 Exam Tip: A favourable bank balance is the desired state for a business, indicating sufficient liquidity, and is represented by a debit balance in the cash book and a credit balance in the passbook.

3. Do You Agree Or Disagree With The Following Statements:

 

Question 1. The bank column of Cash Book represents the bank account.
Answer: Agree
In simple words: The bank column in a cash book acts as the company's own record of its bank account, tracking deposits and withdrawals.

🎯 Exam Tip: Understanding that the cash book's bank column is a direct representation of the bank account from the firm's perspective is fundamental to BRS.

 

Question 2. A bank statement enables the account holder to prepare Bank Reconciliation Statement.
Answer: Agree
In simple words: Yes, a bank statement is essential because it provides the bank's records that the account holder compares with their own cash book to create the Bank Reconciliation Statement.

🎯 Exam Tip: The bank statement serves as one of the two key documents (along with the cash book) required to perform a bank reconciliation effectively.

 

Question 3. Cheques issued for payment but not presented to bank appear in Cash Book only.
Answer: Agree
In simple words: When a business issues a cheque, it immediately records it in its cash book, but the bank only records it once the cheque is presented and cleared.

🎯 Exam Tip: This is a common timing difference in BRS. Cheques issued reduce the cash book balance at the time of issue but only reduce the passbook balance upon presentation.

 

Question 4. Bank Reconciliation Statement is prepared only during the year-end.
Answer: Disagree
In simple words: A Bank Reconciliation Statement can be prepared at any time, not just at year-end, typically monthly, to keep financial records accurate.

🎯 Exam Tip: While year-end reconciliation is common, businesses often prepare BRS monthly to promptly identify and correct discrepancies, ensuring up-to-date cash balances.

 

Question 5. Bank Reconciliation Statement is similar to the bank statement.
Answer: Disagree
In simple words: A Bank Reconciliation Statement is a report that explains differences between the cash book and the bank statement, while the bank statement is the actual record from the bank. They are not the same.

🎯 Exam Tip: It is important to distinguish between the two: the bank statement is an input document from the bank, while the BRS is an analytical report prepared by the business.

 

Question 6. Bank balance as per Cash Book is always equal to bank balance as per Pass Book.
Answer: Disagree
In simple words: The bank balance in the Cash Book is rarely the same as in the Pass Book due to various reasons like timing differences in recording transactions.

🎯 Exam Tip: This statement highlights the very reason why a Bank Reconciliation Statement is necessary – to explain why these balances are usually different.

 

Question 7. Bank advice is sent by the businessman to the bank.
Answer: Disagree
In simple words: Bank advice is actually sent by the bank to the businessman, informing them about transactions like charges, interest, or direct deposits.

🎯 Exam Tip: Bank advice (or debit/credit advice) originates from the bank, providing the customer with information about changes in their account that the bank has initiated or recorded.

 

Question 8. Pay-in-slip is used for depositing cheques into banks.
Answer: Agree
In simple words: Yes, a pay-in-slip is the standard form used to deposit both cash and cheques into a bank account.

🎯 Exam Tip: The pay-in-slip acts as a formal record for the bank and a proof of deposit for the customer when submitting cheques or cash.

 

Question 9. The difference in Cash Book Balance and Pass Book balance may arise due to errors committed while recording.
Answer: Agree
In simple words: Discrepancies between the cash book and passbook can certainly happen because of mistakes made by either the business or the bank when recording transactions.

🎯 Exam Tip: Errors are a significant category of differences in BRS, requiring careful checking of both sets of records to pinpoint the mistake.

 

Question 10. Payment and receipt of cash through internet banking generate an automatic proof.
Answer: Agree
In simple words: Online banking transactions automatically generate digital records and confirmations, serving as immediate proof of payment or receipt.

🎯 Exam Tip: Digital proofs from internet banking streamline record-keeping but still need to be verified against bank statements for reconciliation purposes, especially for timing differences.

4. Select The Most Appropriate Alternative From Those Given And Rewrite The Following Statements:

 

Question 1. Overdraft means _____ balance of Cash Book.
(a) closing
(b) debit
(c) opening
(d) credit
Answer: (d) credit
In simple words: From the business's perspective, an overdraft is represented as a credit balance in the cash book's bank column, indicating money owed to the bank.

🎯 Exam Tip: A credit balance in the cash book signifies an unfavorable position or bank overdraft, which is opposite to the usual understanding of a credit balance increasing funds.

 

Question 2. When a cheque is deposited and collected by bank Pass Book is _____
(a) dishonoured
(b) debited
(c) credited
(d) written
Answer: (c) credited
In simple words: When a cheque you deposit is successfully processed and the money is added to your account by the bank, your passbook shows a credit entry.

🎯 Exam Tip: For the bank, a customer's account is a liability. When money is deposited, this liability increases, hence it is credited in the passbook.

 

Question 3. A _____ is a summary of financial transactions that take place over a period of time on a bank account.
(a) withdrawal slip
(b) bank advice
(c) bank statement
(d) Pay-in-slip
Answer: (c) bank statement
In simple words: A bank statement provides a comprehensive overview of all deposits, withdrawals, and other transactions in a bank account during a specific period.

🎯 Exam Tip: The bank statement is the official record from the bank, detailing all account activities for reconciliation purposes.

 

Question 4. Debiting an entry in Cash Book _____ cash balance.
(a) increases
(b) decreases
(c) nullifies
(d) none of the above
Answer: (a) increases
In simple words: In the cash book, debiting an entry means an increase in the cash (or bank) balance.

🎯 Exam Tip: For asset accounts like cash, a debit entry increases the balance, while a credit entry decreases it.

 

Question 5. Bank Reconciliation Statement is prepared by _____
(a) student
(b) businessman
(c) bank
(d) none of the above
Answer: (b) businessman
In simple words: The Bank Reconciliation Statement is prepared by the business itself to compare its cash records with the bank's records.

🎯 Exam Tip: It is essential to remember that the BRS is an internal document prepared by the business, not an official bank document.

 

Question 6. Bank balance as per Pass Book means _____ balance of Pass Book.
(a) credit
(b) opening
(c) debit
(d) closing
Answer: (a) credit
In simple words: A favorable bank balance, as shown in the passbook, is a credit balance because the bank views the customer's deposit as its liability.

🎯 Exam Tip: A credit balance in the passbook indicates a positive bank balance (money available), which is considered favorable from the customer's perspective.

 

Question 7. Bank gives overdraft facility to _____ account holder.
(a) savings
(b) recurring
(c) current
(d) fixed
Answer: (c) current
In simple words: Overdraft facilities are typically provided by banks to current account holders, usually businesses, to allow withdrawals beyond their available balance.

🎯 Exam Tip: Current accounts are designed for frequent transactions and business operations, making them suitable for overdraft facilities, unlike personal savings accounts.

 

Question 8. Debit balance as per Cash Book is also known as _____ balance.
(a) favourable
(b) overdraft
(c) abnormal
(d) unfavourable
Answer: (a) favourable
In simple words: A debit balance in the cash book's bank column means the business has money in its account, which is a positive or "favorable" balance.

🎯 Exam Tip: From the business's viewpoint, a debit balance in its cash account (an asset) represents a healthy, positive cash position.

 

Question 9. When extracts of Cash Book and Pass Book are given for uncommon periods, only _____ items are considered for preparation of Bank Reconciliation Statement.
(a) uncommon
(b) normal
(c) favourable
(d) common
Answer: (d) common
In simple words: If the cash book and passbook cover different timeframes, only transactions that fall within the overlapping (common) period should be considered for reconciliation.

🎯 Exam Tip: For effective reconciliation, the statement should ideally cover a consistent period; if not, only transactions common to both periods should be analyzed to identify discrepancies.

 

Question 10. When extract of Cash Book and Pass Book is given for common period, only _____ items are considered for preparation of Bank Reconciliation Statement.
(a) uncommon
(b) common
(c) favourable
(d) unfavourable
Answer: (a) uncommon
In simple words: When the cash book and passbook cover the same period, only the transactions that appear in one record but not the other (uncommon items) are relevant for reconciliation, as common items already match.

🎯 Exam Tip: In a BRS, the focus is on identifying and explaining items that cause discrepancies, meaning transactions recorded in one book but not yet in the other during the reconciliation period.

5. Complete The Following Statements:

 

Question 1. Payments credited in Cash Book are _____ in Pass Book.
Answer: Debited
In simple words: When a business makes a payment and records a credit in its cash book, the bank will record a debit in the passbook when that payment clears.

🎯 Exam Tip: Always remember the inverse relationship: a payment (credit in cash book) leads to a debit in the passbook; a receipt (debit in cash book) leads to a credit in the passbook.

 

Question 2. While preparing Bank Reconciliation Statement only _____ column of Cash Book is considered.
Answer: Bank
In simple words: Only the 'Bank' column of the Cash Book is used for reconciliation because it tracks the transactions related to the bank account.

🎯 Exam Tip: The cash column of the cash book deals with physical cash on hand, which is not part of the bank reconciliation process.

 

Question 3. Cheques issued to creditors appear first in _____ book.
Answer: Cash
In simple words: When a business writes a cheque to pay someone, it records that payment in its cash book immediately.

🎯 Exam Tip: Issuing a cheque affects the cash book instantly, but the bank's records are updated only when the cheque is presented and cleared by the payee's bank.

 

Question 4. A statement showing the reasons for the difference in Cash Book Balance and Pass Book balance is known as _____
Answer: Bank Reconciliation Statement
In simple words: This statement is specifically designed to explain why the balance in a company's cash book doesn't match the balance in its bank's passbook.

🎯 Exam Tip: The name itself (Bank Reconciliation Statement) indicates its purpose: to reconcile (make consistent) the bank balances between two records.

 

Question 5. Overcast on receipt side of Pass Book means _____ in Pass Book balance.
Answer: Increase
In simple words: If the receipt side of the passbook (which is the credit side) is overcast, it means that the total deposits were overstated, leading to an artificially higher passbook balance.

🎯 Exam Tip: An overcast (over-totaling) on the credit side of the passbook means an overstatement of the bank balance, which would need a deduction to correct.

 

Question 6. Online transfer made to our creditors appear on the _____ side of Cash Book.
Answer: Payment/Credit
In simple words: When you make an online payment to a creditor, it's a outflow of cash, so it will be recorded on the payment (credit) side of your cash book.

🎯 Exam Tip: Payments reduce the bank balance and are therefore recorded on the credit side of the cash book, as per the rules of double-entry accounting.

 

Question 7. Interest on overdraft charged by bank is _____ in Pass Book.
Answer: Debited
In simple words: When the bank charges interest on an overdraft, it reduces your available balance, so the bank debits your account, which appears as a debit entry in your passbook.

🎯 Exam Tip: Bank charges or interest on overdraft are expenses for the customer, which reduce the bank's liability to the customer, thus appearing as a debit in the passbook.

 

Question 8. Normally the Cash Book shows debit balance and Pass Book shows _____ balance.
Answer: Credit
In simple words: Typically, a healthy cash position means the Cash Book has a debit balance (money in the bank), and the Pass Book has a credit balance (the bank owes you money).

🎯 Exam Tip: This is the most common scenario for a favorable bank balance: debit in the cash book (asset increases with debit) and credit in the passbook (bank's liability to customer increases with credit).

 

Question 9. The form filled for withdrawing cash from bank is known as _____
Answer: Withdrawal Slip
In simple words: A withdrawal slip is the document you complete to take out cash from your bank account.

🎯 Exam Tip: Withdrawal slips are internal bank documents, distinct from cheques, and are used primarily for over-the-counter cash withdrawals.

 

Question 10. A businessman can update his records on receiving _____
Answer: Bank Advice
In simple words: A businessman uses bank advice (like debit or credit notes from the bank) to update their cash book for transactions they weren't aware of, such as charges or direct deposits.

🎯 Exam Tip: Bank advice alerts the business to transactions initiated or processed by the bank that may not yet be recorded in the company's cash book, helping to keep records aligned.

6. State Whether The Following Statements Are True Or False With Reasons:

 

Question 1. Cheques deposited into the bank but not yet cleared appears in the Pass Book only.
Answer: This statement is False. Cheques deposited into the bank but not yet cleared appears in the cash book only. Bank records entry in the passbook only after the cheque is cleared. So there is no entry for this transaction in the Pass Book.
In simple words: False, when you deposit a cheque, you record it in your cash book immediately, but the bank only shows it in your passbook after the cheque has successfully cleared, creating a temporary difference.

🎯 Exam Tip: This is a classic timing difference. The cash book reflects the deposit on the date it's made, while the passbook shows it on the date of clearing, which is often later.

 

Question 2. Direct deposit made by debtors into a businessman's bank account is recorded on the credit side of Pass Book.
Answer: This statement is True. The credit side of the passbook means deposits made in the bank account. When direct deposits are made by debtors into a businessman's bank account. It increases the bank balance and it is recorded on the credit side of Pass Book.
In simple words: True, when a customer directly deposits money into your bank account, the bank will credit your account in the passbook because it increases their liability to you.

🎯 Exam Tip: Direct deposits are a common reconciling item. The business only knows about them when they receive the bank statement or bank advice, leading to a difference with the cash book.

 

Question 3. A businessman can prepare a Bank Reconciliation statement only with Cash Book Balance.
Answer: This statement is False. The businessman can prepare a Bank Reconciliation statement with the help of a cash book, bank column, and passbook. It is a comparison between the two to correct the differences. Both i.e. cash book and pass book/Bank statement are required to prepare a Bank Reconciliation statement.
In simple words: False, you need both your business's cash book records and the bank's passbook or bank statement to prepare a Bank Reconciliation Statement, as it's a comparison between the two.

🎯 Exam Tip: A BRS requires information from two distinct sources: the company's internal cash book records and the external bank statement/passbook.

 

Question 4. When overdraft as per Cash Book is given, bank charges debited in Pass Book only are to be added.
Answer: This statement is True. Bank overdraft as per cash book means negative bank balance. The businessman has to pay the Bank. Bank charges are expenses for the business and this increases the amount payable to the bank so bank charges debited in the passbook only are to be added in the cash book.
In simple words: True, if you start with an overdraft as per the cash book, bank charges that the bank debited but you haven't recorded will increase your overdraft, so they are added to reconcile.

🎯 Exam Tip: When starting from an overdraft balance (as per cash book), items that *reduce* the normal bank balance (like bank charges) will *increase* the overdraft, and thus are added.

 

Question 5. Bank Statement is sent by Bank to the businessman.
Answer: This statement is True. A bank statement is a statement issued by the bank to the current account holder informing about the bank transactions during a particular period of time.
In simple words: True, the bank is responsible for sending the bank statement to its customers, summarizing all transactions in their account for a given period.

🎯 Exam Tip: The bank statement serves as an external, independent record of the company's bank activity, making it invaluable for internal control and reconciliation.

7. Draft The Following Specimen With Imaginary Name, Account Number, Amount.

 

Question 1. Bank Statement
Answer: Specimen of Bank Statement is given below:
ℹ️ चित्र व्याख्या (Diagram Explanation): यह एक बैंक स्टेटमेंट का नमूना है, जिसमें बैंक, शाखा का पता, खाताधारक का नाम, खाता संख्या और स्टेटमेंट की अवधि जैसी जानकारी शामिल है। इसमें निकासी और जमा की तारीखें, विवरण और राशि के साथ लेनदेन का विस्तृत रिकॉर्ड दिखाया गया है, और अंत में शेष राशि भी दी गई है। यह छात्रों को बैंक स्टेटमेंट की संरचना और सामग्री को समझने में मदद करता है।

The Bank of Maharashtra (Name of the bank)				MaharashtraBoardSolutions.in
Bank Branch Address: Lower Parel Branch, Mumbai -13			Date		Page
Current A/c No. 428242
Name of Current A/c holder: Dr. Ashok Madhav Narkar 504/c, Siddhivinayak Annex, S.J. Road, Lower Parel (Address of Current A/c holder)
Instrumentwise Statement of Account From _______________ to _______________
Date	Description	Instrument No. Ch. No.	Withdrawal Amount (Rs.)	Deposit Amount (Rs.)	Closing Balance (Rs.)
2019 July 1	Balance b/f				42,400
4	NEFT LIC of INDIA			5,275	47,625
7	INWD. CLG 360239 BEST	100032	1,250		46,425
10	Cash self	100033	5,000		41,425
11	Interest			220	41,654
14	Archana Tawde	100034	6,000		35,645
	Page Total c/f.		12,250	5,495

In simple words: This specimen shows a bank statement listing opening balance, NEFT deposits, cash withdrawals, interest earned, and cheque payments, providing a clear record of account activity and the closing balance.

🎯 Exam Tip: Students should understand how to read a bank statement, identifying opening and closing balances, and distinguishing between withdrawals/debits and deposits/credits for reconciliation.

 

Question 2. Pay-in-slip
Answer: (a) Specimen of pay-in-slip is given below: Front side
ℹ️ चित्र व्याख्या (Diagram Explanation): यह एक पे-इन-स्लिप का नमूना है, जिसके सामने की तरफ बैंक का नाम, शाखा, खाता संख्या, जमाकर्ता का नाम और जमा की गई नकद/चेक की राशि (शब्दों और अंकों में) दर्ज की जाती है। यह फॉर्म बैंक में नकद या चेक जमा करते समय उपयोग किया जाता है, जिससे जमाकर्ता और बैंक दोनों के पास लेनदेन का रिकॉर्ड रहता है।

Union Bank of India (Name of the bank) Prabhadevi (Address)			Ledger Folio _______________	Account No. 2885 Union Bank of India (Name of the bank) 24/c, Amol Height, Parbhadevi (Address)
Date 7/07/18				Date: 7/07/18
Paid into the credit of Saving Bank Account No. 2885 Name in full Kishor A. Rane (in words) Fifteen thousand Only by Cash/ Cheque Rs.15,000/- Cashier				Branch Prabhadevi Paid in the credit of Saving Bank Account of Name in full Kishor Anant Rane (in words) Fifteen Thousand on only by Cash/Cheque Rs.15,000/-
MaharashtraBoardSolutions.in				K.A.Rane
Accountant				Cashier	Checked	Accountant/Manager Deposited by

(b) Reverse (Back-side) of Pay-in-slip:
ℹ️ चित्र व्याख्या (Diagram Explanation): यह पे-इन-स्लिप का पिछला भाग है, जिसमें जमा की गई नकदी के नोटों और सिक्कों का विवरण, जैसे कि 2000, 500, 100 आदि के नोटों की संख्या और उनकी कुल राशि दर्ज की जाती है। इसमें चेक का विवरण, जैसे ड्रावी बैंक और चेक नंबर के साथ चेक की राशि के लिए भी कॉलम होते हैं, जिससे नकद और चेक जमा का विस्तृत रिकॉर्ड सुनिश्चित होता है।

No. of Notes (Rs.)	Cash	Drawee Bank	Cheque No.	Amt. (Rs.)		Drawee Bank	Cheque No.	Amt. (Rs.)
× 2000					Cash			15,000
30 × 500	15,000				30 × 500
× 100
× 50
× 20
× 10
x5
× 2
× 1
Coins
Total	15,000

In simple words: A pay-in-slip specimen shows both the front (account details, amount, cash/cheque type) and back (denomination of cash, cheque details) sides, enabling clear tracking of deposits.

🎯 Exam Tip: Familiarize yourself with both sides of a pay-in-slip, as it's a common document for cash management, and errors in filling it can lead to reconciliation issues.

 

Question 3. Withdrawal slip
Answer: Specimen form of a withdrawal slip is given below:
ℹ️ चित्र व्याख्या (Diagram Explanation): यह एक निकासी पर्ची (withdrawal slip) का नमूना है, जिसका उपयोग बचत खाताधारक बैंक से नकद निकालने के लिए करते हैं। इसमें शाखा का नाम, तिथि, खाताधारक का नाम, खाता संख्या और निकाली जाने वाली राशि (शब्दों और अंकों में) दर्ज होती है। इसमें लेजर कीपर, अधिकारी और खाताधारक के हस्ताक्षर के लिए भी स्थान होता है, जो निकासी प्रक्रिया को अधिकृत करता है।

SANGHMITRA BANK WITHDRAWAL SLIP			Date: 17/07/2019
Branch: Girgaon	MaharashtraBoardSolutions.in
Pay Self sum of Rupees Nine Thousand only. and debit to saving account no. 3245 of Mr. Rajesh Amit Naik
Rs. 9,000/-	MaharashtraBoardSolutions.in
Ledger Keeper	Officer	Folio	R.A. Naik Signature of Account Holder
This form is not a CHEQUE. The account holder must present this withdrawal slip with the pass book to the bank for transaction.

In simple words: This withdrawal slip specimen illustrates a form used to take cash from a bank account, detailing the amount, account holder, and requiring signatures for authorization.

🎯 Exam Tip: Note that a withdrawal slip is not a cheque and often requires the passbook for authentication, primarily used for self-withdrawals from savings accounts.

 

Question 4. Bank Advice
Answer: Specimen of bank advice is given below:
ℹ️ चित्र व्याख्या (Diagram Explanation): यह एक बैंक एडवाइस का नमूना है, जो बैंक द्वारा खाताधारक को भेजे गए डेबिट या क्रेडिट लेनदेन की सूचना देता है। इसमें तिथि, खाताधारक का नाम और खाते से डेबिट की गई विशेष लेनदेन (जैसे बिजली बिल, किराया, एलआईसी प्रीमियम का भुगतान) का विवरण और राशि शामिल होती है। यह खाताधारक को उनके खाते में हुए स्वचालित लेन-देन के बारे में सूचित करता है।

Folio 17/20 _______________		BANK ADVICE Central Bank of India (Name of the bank) Dadar BRANCH		MaharashtraBoardSolutions.in
DEBIT ADVICE / CREDIT ADVICE To Mr./M/s Sachin M. Tendulkar Particulars of transactions				Date: 7/07/2019
PLEASE NOTE THAT TODAY WE HAVE DEBITED YOUR ACCOUNT AS FOLLOWS
(1) Payment of Electricity bill for June 19		Debit (Rs.) 1,250		Credit (Rs.)
(2) Payment of Rent to Landlord for June 19		950
(3) Payment of LIC Premium for June 19		1,520
Total		3,720
(In Words) RUPEES Three Thousand Seven Hundred Twenty only			For The Payment of expenses.
Contra Ac.	Prepared by:	Officer / Accountant		Branch Manager

In simple words: This bank advice specimen demonstrates how banks inform customers about automatic debits for services like bill payments (electricity, rent, LIC premium), detailing the transaction and the amount debited from their account.

🎯 Exam Tip: Bank advice is crucial for updating the cash book, as it informs the business about transactions (like bank charges or direct payments) that they might not have recorded yet.

 

Question 5. Pass Book
Answer: Specimen form of the Bank passbook is given below:
Bank Pass Book
ℹ️ चित्र व्याख्या (Diagram Explanation): यह एक बैंक पासबुक का नमूना है, जिसमें बैंक द्वारा खाताधारक के सभी लेनदेन का विस्तृत रिकॉर्ड होता है। इसमें तिथि, विवरण, चेक या निकासी पर्ची संख्या, निकाली गई/डेबिट की गई राशि, जमा की गई/क्रेडिट की गई राशि और प्रत्येक लेनदेन के बाद शेष राशि दिखाई जाती है। यह खाताधारक को अपने बैंक खाते की गतिविधियों का अवलोकन प्रदान करता है।

Sr. No.	Date	Particulars	Cheque or Withdrawal Slip No.	Amount Withdrawn/Debited (Rs.)	Amount Deposited/Credited (Rs.)	Balance Amount (Rs.)	Initial
1	1/07/2019	By Balance b/d				8,784
MaharashtraBoardSolutions.in
2	4/07/2019	By Cash			30,000	38,784
3	7/07/2019	To M.K. Ghare Jeweller's	74867	12,000		26,784
4	10/07/2019	To ICICI Prudential life in	74868	10,000		16,784
5	24/07/2019	To Cash Self	74869	5,000		11,784

In simple words: This passbook specimen shows a record of transactions, including an opening balance, cash deposits, and withdrawals via cheques, demonstrating how the bank tracks the account balance over time.

🎯 Exam Tip: The passbook is a physical book that serves as an official record of all bank transactions from the bank's viewpoint, which is critical for comparison during reconciliation.

8. Correct And Rewrite The Following Statements.

 

Question 1. The form filled for depositing cash or cheque into the bank is known as Pass Book.
Answer: The form filled for depositing cash or cheque into the bank is known as Pay in slip.
In simple words: The correct term for the form used to deposit cash or cheques into a bank is a 'Pay-in-slip', not a 'Pass Book'.

🎯 Exam Tip: Differentiate clearly between a 'Pay-in-slip' (for deposits) and a 'Pass Book' (the record of transactions); confusing these terms can lead to errors in accounting.

 

Question 2. Bank Reconciliation Statement is prepared by Bank.
Answer: Bank Reconciliation Statement is prepared by Businessman.
In simple words: A Bank Reconciliation Statement is prepared by the business, not the bank, to ensure that its internal cash records match the bank's records.

🎯 Exam Tip: This is a key conceptual point: the BRS is an internal financial control document generated by the company's accounting department.

 

9. Complete The Following Table.

Question 1.Reasons

Reasons	When Normal balance as per Cash Book is given Add/Less	When Normal balance as per Pass Book is given Add/Less
1) Interest debited in Pass Book only.
2) Direct deposit made by customer in bank recorded in Pass Book
3) Cheque deposited into bank but not yet collected by bank
4) Cheque deposited into bank is dishonoured
5) Cheque issued but not presented for payment.

Answer:

Reasons	When Normal balance as per Cash Book is given Add / Less	When Normal balance as per Pass Book is given Add / Less
(1) Interest debited in Pass Book only.	(-)	(+)
(2) Direct deposit made by customer in bank recorded in Pass Book.	(+)	(-)
(3) Cheque deposited into bank but not yet collected by bank	(-)	(+)
(4) Cheque deposited into bank is dishonoured	(-)	(+)
(5) Cheque issued but not presented for payment.	(+)	(-)

In simple words: This table illustrates how various banking transactions affect the Cash Book and Pass Book balances differently, requiring adjustments to reconcile them based on whether a normal balance as per Cash Book or Pass Book is given.

🎯 Exam Tip: Understanding the impact of each transaction on both Cash Book and Pass Book is crucial for accurately filling out the Add/Less columns in bank reconciliation statements.

 

Practical Problems

Question 1.Following is the extract of the Cash Book (Bank Column only) and passbook. Prepare Bank Reconciliation Statement as of 31st Oct. 2018. In the books of ________________________ Dr. Cash Book (Bank column only) Cr.

Date	Receipts	Amount (Rs.)	Date	Payments	Amount (Rs.)
2018 Oct
01	To Balance b/d	10,000	07	By Tejas	12,000
05	To Aparna	5,000	10	By Anil	3,000
08	To Apoorva	6,000	15	By Bank charges	200
12	To Omkar	3,000	17	By Advertisement	2,000
20	To Sunil	4,000	20	By Drawings	1,000
			31	By Balance c/d	9,800
		28,000			28,000

In the books of Bank Dr. Pass Book Cr.

Date	Payments	Amount (Rs.)	Date	Receipts	Amount (Rs.)
2018 Oct.
07	To Interest	500	01	By Balance b/d	10,000
10	To Insurance premium	2,000	10	By Apoorva	6,000
13	To Anil	3,000	22	By Sunil	4,000
20	To Telephone bill	2,000	24	By Raju	2,000
20	To Drawings	1,000	27	By Swanand	3,000
31	To Balance c/d	16,500
	25,000				25,000

Solution:Bank Reconciliation Statement as of 31st October 2018.

Particulars		Amount (Rs.)	Amount (Rs.)
Bank balance as per Cash Book			9,800
Add:	(1) Cheque issued but not presented for payment	12,000
	(2) Bank charges credited in the cash book but not debited in pass book	200
	(3) Cheque issued for payment of advertisement bill not yet cleared	2,000
	(4) Cheque of Raju deposited and cleared but not recorded in the cash book	2,000
	(5) Cheque of Swanand deposited and cleared but omitted to be recorded in cash book	3,000	19,200
			29,000
Less:	(1) Cheque of Aparna deposited but not collected by the bank	5,000
	(2) Cheque of Omkar deposited but not collected by the bank	3,000
	(3) Insurance premium paid by the bank but not yet credited in the cash book	2,000
	(4) Telephone bill paid and debited only in the pass book	2,000
	(5) Interest debited only in the pass book	500	12,500
Bank balance as per pass book			16,500

Working Notes: When extract of Cashbook and passbook are given for the same period i.e. for the month of April 2018, we have to consider only uncommon entries for adding and deducting from Bank Reconciliation Statement. This is shown in the following working notes. In order to find out items to be added and items to be deducted in the Bank Reconciliation Statement, we have to prepare Cash Book and passbook on the basis of accounting information given in the problem: Cash Book

2018 Oct. 1	To Balance b/d	9,800	2018 Oct. 7	Interest	500
24	Raju	2,000	10	Insurance Premium	2,000
27	Swanand	3,000	20	Telephone bill	2,000
(+)			(-)

Bank Pass Book

2018 Oct. 07	Tejas	12,000	2018 Oct. 05	Aparna	5,000
15	Bank Charges	200	12	Omkar	3,000
17	Advertisement	2,000
(+)			(-)

Explanation: 1. First record the opening balance in the appropriate book i.e. either in Cashbook or passbook. 2. Bank balance of Rs.9,800 as per Cashbook is recorded on the debit side of Cashbook in a box. 3. In this problem, the entries which are passed on the debit side of the Cashbook and passbook are to be added in the Bank Reconciliation Statement and the entries passed on the credit side of the Cashbook and passbook are to be deducted in the Bank Reconciliation Statement. This is because the opening balance appears on the debit side of the Cash Book.
In simple words: This problem requires preparing a Bank Reconciliation Statement by comparing the Cash Book and Pass Book extracts, identifying unmatched entries, and adjusting them to arrive at the reconciled balance. Working notes and explanations clarify the process of adding or deducting items.

🎯 Exam Tip: When given both Cash Book and Pass Book extracts for the same period, only "uncommon" entries (those appearing in one but not the other) should be considered for adjustment in the Bank Reconciliation Statement.

 

Question 2.From the following extract of Cash Book and Pass Book prepare Bank Reconciliation Statement as of 31st March 2019. In the books of _______________________ Dr. Cash Book (Bank column only) Cr.

Date	Receipts	Amount (Rs.)	Date	Payments	Amount (Rs.)
2019 Mar.
01	To Balance b/d	79,500	04	By Rent	36,000
04	To Avinash	18,000	06	By Mansi	20,100
09	To Dhananjay	25,500	12	By Nikhil	9,600
15	To Meenal	10,800	17	By Drawings	15,000
20	To cash	24,000	24	By Nishant	27,600
27	To Prasad	14,700	31	By Balance c/d	64,200
		1,72,500			1,72,500

In the books of Bank Bank Pass Book

Date	Particulars	Withdrawals		Deposits		Balance
		Dr. Rs.		Cr. Rs.		Rs.
2019 Apr.
01	By Balance b/d					86,400
04	By Meenal			10,800		97,200
06	By Prasad			14,700		1,11,900
10	To Salary	24,000				87,900
13	To Nishant	27,600				60,300
18	By Bharat			11,400		71,700
23	To Keshav	6,600				65,100
27	To Mansi	20,100				45,000
30	By Sharvari			18,000		63,000

Solution:Bank Reconciliation Statement as of 31st March 2019

Particulars		Amount (Rs.)	Amount (Rs.)
Bank balance as per Cash Book			64,200
Add:	(1) Cheque issued to Mansi not presented for payment	20,100
	(2) Cheque issued to Nishant not presented for payment	27,600	47,700
			1,11,900
Less:	(1) Cheque received from Meenal deposited into the bank but not collected by the bank	10,800
	(2) Cheque received from Prasad deposited into the bank but not collected by the bank	14,700	25,500
Bank balance as per pass book			86,400

Working Notes: When extract of Cashbook and passbook are given for the same period i.e. for the month of April 2011, we have to consider only uncommon entries for adding and deducting from Bank Reconciliation Statement. This is shown in the following working notes. In order to find out items to be added and items to be deducted in the Bank Reconciliation Statement, we have to prepare Cash Book and passbook on the basis of accounting information given in the problem: Cash Book

To Balance b/d	64,200
(+)		(-)

Bank Pass Book

To Mansi's A/c	20,100	By Minal's A/c	10,800
To Nishant A/c	27,600	By Prasad's A/c	14,700
(+)		(-)

In simple words: This solution demonstrates how to prepare a Bank Reconciliation Statement by comparing the Cash Book and Pass Book, identifying discrepancies like unpresented cheques or uncollected deposits, and then adjusting the Cash Book balance to match the Pass Book balance.

🎯 Exam Tip: Remember to carefully cross-reference each entry in both the Cash Book and Pass Book to accurately identify discrepancies. Unmatched entries typically form the basis of the adjustments in the Bank Reconciliation Statement.

 

Question 3.On 31st August 2018 bank passbook of Mr. Ravi showed a credit balance of Rs.33,600, but Cash Book showed a different balance. On comparing the two books following differences were noticed: 1. Cheques paid into the bank but not credited before 31st Aug 2018 amounted to Rs. 24,500. 2. Direct deposit by the customer through NEFT Rs. 33,000 recorded in the passbook only. 3. Cheques issued on 28th Aug 2018 were presented for payment on 5th Sep. 2018 amounted to Rs. 38,800. 4. A bill receivable for Rs. 15,000 discounted with the bank was dishonored on 30th Aug 2018. Intimation of the same was received only on 3rd Sep 2018. 5. Passbook credit side was overcast Rs. 2,000. 6. Bank debited Rs.400 for bank charges in the passbook, which was not recorded in Cash Book. Prepare Bank Reconciliation Statement as of 31st August 2018.
Solution:Bank Reconciliation Statement as of 31st August 2018.

Particulars		Amount (Rs.)	Amount (Rs.)
Bank balance as per pass book			33,600
Add:	(1) Cheque deposited into the bank but not credited into the pass book	24,500
	(2) Dishonor of discounted bill not recorded in the cash book	15,000
	(3) Bank charges debited in the pass book but not recorded in the cash book	400	39,900
			73,500
Less:	(1) Direct deposit by customer through NEFT recorded only in the pass book	33,000
	(2) Cheque issued but not presented for payment	38,800
	(3) Pass Book credit side overcast now corrected	2,000	73,800
Overdraft as per Cash Book			300

Working Notes: In order to find out items to be added and items to be deducted in the Bank Reconciliation Statement, we have to prepare Cash Book and passbook on the basic information given in the problem: Cash Book (With Bank Column)

2. NEFT deposit	33,000	4	Bill dishonored	15,000
		6	Bank Charges	400
(-)		(+)

Bank Pass Book

3. Cheque issued	38,800	By Balance b/d	33,600
5. Overcast corrected	2,000	1 Cheque deposited	24,500
(+)		(+)

Explanation: 1. First record the opening balance in the appropriate book and at the appropriate side i.e. either in Cashbook or passbook. 2. In the above problem Bank balance of Rs. 33,600 as per the passbook is recorded on the credit side of the passbook in a box. 3. In this problem, the entries which are passed on the credit side of the Cashbook and passbook are to be added in the Bank Reconciliation Statement and the entries passed on the debit side of the Cash Book and passbook are to be deducted in the Bank Reconciliation Statement. This is because the opening balance appears on the credit side of the passbook.
In simple words: This problem involves reconciling the bank passbook balance with the cash book balance by systematically identifying and adjusting various discrepancies like uncredited cheques, direct deposits, unpresented cheques, dishonored bills, and bank errors.

🎯 Exam Tip: When starting with a Pass Book credit balance, items that increase the Cash Book balance are added, and items that decrease it are subtracted. Pay close attention to errors like "overcast" and their corrective impact.

 

4. Pass the entry of the given transactions in the book in which entry is not passed due to one or another reason, e.g. cheque of Rs. 24,300 is deposited but not collected. In this case, entry is not passed in the passbook, as the cheque is not collected by the bank. Now draft the entry for the given transaction on the credit side of the passbook. This is because, after the collection of cheques, the bank balance is increased. In the same way for remaining transactions pass the entry in that book where entry is not passed corresponding.

Question 4.From the following details prepare Bank Reconciliation Statement as of 31st Dec. 2018. 1. Bank overdraft as per Cash Book on 31st Dec. 2018 was Rs. 48,450. 2. Bank charges for SMS alerts Rs. 370 were debited in passbook but not recorded in Cash Book. 3. Interest in overdraft Rs. 2,870 did not appear in Cash Book. 4. A bill for Rs. 12,000 discounted with bank appears in Cash Book at the full amount but the bank has deducted Rs. 200 discounting charges. 5. Cheques issued but not presented for payment before 31st Dec. 2018 amounted to Rs. 32,300. 6. Cheques amounting to Rs. 24,000 were deposited into the bank but only a cheque of Rs. 8,000 was collected by the bank before 31st Dec. 2018. 7. Paid stationary bill Rs. 11,300 by debit card. It was not recorded in Cash Book.
Solution:Bank Reconciliation Statement as of 31st December 2018.

Particulars		Amount (Rs.)	Amount (Rs.)
Bank overdraft as per cash book			48,450
Add:	(1) Bank charges for SMS alerts were debited in pass book but not credited in the Cash Book	370
	(2) Interest on overdraft only debited in pass book	2,870
	(3) Bill discounted charges debited in the pass book but not credited in the Cash Book	200
	(4) Stationery bill paid by deducted but not recorded in the Cash Book	11,300
	(5) Cheque deposited but not collected (24,000 - 8,000)	16,000	30,740
			79,190
Less:	(1) Cheque issued but not presented for payment	32,300	32,300
Bank Overdraft as per pass book			46,890

Working Notes: Cash Book (With Bank Column)

1	By Balance b/d	48,540
3	Bank Changes	370
4	Interest on overdraft	2,870
7	Discounting Charges	200
	Stationery Bill	11,300
(+)

Bank Pass Book

5. Cheque issued not presented for payment	32,300	6. Cheque deposited not collected	16,000
(-)		(+)

In simple words: This solution calculates the Bank Reconciliation Statement starting with an overdraft as per Cash Book, adding items that have increased the bank balance or reduced the overdraft, and subtracting items that have decreased the bank balance or increased the overdraft, to arrive at the overdraft as per Pass Book.

🎯 Exam Tip: When starting with an overdraft as per Cash Book, remember to reverse the usual treatment of items: entries that increase your Cash Book balance (like unpresented cheques) are subtracted, while those that decrease it (like bank charges not in Cash Book) are added.

 

Question 5.From the following particulars prepare Rank Reconciliation Statement as of 30th June 2019. 1. Credit balance as per pass book Rs. 20,000. 2. A cheque for Rs. 3,500 was issued and paid by the bank, recorded in Pass Book as Rs. 5,300. 3. Cheque deposited Rs. 9,700 collected by the bank was not recorded in Cash Book. 4. Payment side of the Cash Book was undercast by Rs. 100. 5. Electricity bill paid by bank Rs. 6,200 was recorded twice in Pass Book.
Solution:Bank Reconciliation Statement as of 30th June 2019.

Particulars		Amount (Rs.)	Amount (Rs.)
Bank overdraft as per pass book			20,000
Add:	(1) Cheque issued and paid by the bank but recorded wrongly in the pass book (5,300 - 3,500)	1,800
	(2) Payment side of Cash Book undercast now rectified	100
	(3) Electricity bill paid by the bank recorded twice in the pass book	6,200	8,100
			28,100
Less:	(1) Cheque deposited and collected but not recorded in Cash Book	9,700	9,700
Bank Balance as per Cash Book			18,400

Working Notes: Cash Book (With Rank Column)

3. Cheque deposited not recorded	9,700	4. Credit side undercast	100
(-)		(+)

Bank Pass Book

		By Balance b/d	20,000
5.	Electricity bill paid but recorded twice	6,200
2.	Cheque amount wrongly recorded	1,800
(+)

In simple words: This problem involves preparing a Bank Reconciliation Statement by starting with the Pass Book credit balance, identifying errors like wrong cheque recordings, undercast payment sides, and double entries for electricity bills, and adjusting them to reconcile with the Cash Book balance.

🎯 Exam Tip: Pay close attention to errors in recording amounts (like "recorded as Rs. 5,300" instead of Rs. 3,500) and double entries, as these require specific calculations for correction in the Bank Reconciliation Statement.

 

Question 6.Prepare Bank Reconciliation Statement from the following information as of 31st March 2019. 1. Balance as per Cash Book Rs. 10,000. 2. Cheque of Rs. 2,000 issued but not presented to Bank for payment. 3. Our debtor directly deposited Rs. 3,500 to our Bank account by NEFT, not recorded in the Cash Book. 4. Bank paid electricity bill on our behalf Rs. 450 and charged Bank charges Rs. 100. 5. Paid Rs. 1,500 to ABC & company, our supplier by business debit card but recorded in Cash Book as Rs. 150. 6. Bank credited interest on Investment Rs. 500. 7. Cheque of Rs. 885 issued and presented to Bank but wrongly entered in the Pass Book as Rs. 865.
Solution:Bank Reconciliation Statement as on 31st March 2019

Particulars		Amount (Rs.)	Amount (Rs.)
Bank Balance as per Cash Book			10,000
Add:	(1) Amount directly deposited by our debtor into the Bank A/c by NEFT but Not recorded in the Cash Book	3,500
	(2) Interest on Investment credited in the pass book only	500
	(3) Cheque issued but not presented for payment	2,000
	(4) Cheque issued and presented for payment but wrongly entered in the pass book (885 - 865)	20	6,020
			16,020
Less:	(1) Electricity bill and Bank Charges debited in the pass book only (450 + 100)	550
	(2) Amount paid to supplier by business debit card but recorded wrong amount in Cash Book (1,500 - 150)	1,350	1,900
Bank Balance as per pass book			14,120

Working Notes: Cash Book (With Bank Column)

1. To Balance (b/d)	10,000	4. Electricity charges	450
3. Amount directly deposited	3,500		Bank charges	100
6. Interest on investment	500	5. Wrong amount recorded in Cash Book	1,350
(+)		(-)

Bank Pass Book

2. Cheque issued	2,000
7. Wrong amount entered	20
(+)		(-)

In simple words: This solution creates a Bank Reconciliation Statement by starting with the Cash Book balance, then adding transactions that increase the bank balance (like direct deposits and unpresented cheques) and subtracting those that decrease it (like bank charges and over-recorded payments) to arrive at the Pass Book balance.

🎯 Exam Tip: When correcting errors, always determine the net effect of the error. For instance, an incorrect entry (Rs. 150 instead of Rs. 1,500) requires an adjustment for the difference (Rs. 1,350), not the full amount.

 

Question 7.On 31st January 2018 Bank balance as per Cash Book was Rs. 40,000 but Pass Book was showing some other balances following were the causes of the difference. 1. Cheques were issued for Rs. 1,00,000 in January 2018 but cheques of Rs. 50,000 were only presented to the Bank for payment before January 31st, 2018 2. Cheques were sent to the Bank for collection of Rs. 2,00,000 out of which cheques of Rs. 80,000 were only credited by the Bank in January 2018. 3. Following entries were shown in the passbook in January 2018, but no corresponding entries were made in the Cash Book. (i) Payment of Rs. 6,400 by Bank for Electricity Bill by ECS. (ii) Interest credited by Bank Rs. 12,000 (iii) Bank debited commission Rs. 1,000 and Bank charges for Rs. 600. (iv) Direct deposit made by customer Rs. 1,000 by NEFT to our account. Prepare Bank Reconciliation Statement as of 31st January 2018.
Solution:Bank Reconciliation Statement as of 31st January 2018

Particulars		Amount (Rs.)	Amount (Rs.)
Bank Balance as per Cash Book			40,000
Add:	(1) Interest credited in the pass book but not debited in the Cash Book	12,000
	(2) Amount directly deposited by customer by NEFT but not recorded in the Cash Book	1,000
	(3) Cheque issued but not presented for payment (1,00,000 - 50,000)	50,000	63,000
			1,03,000
Less:	(1) Electricity charges paid through ECS but not recorded in the Cash Book	6,400
	(2) Commission and Bank charges debited only in the pass book (1,000 + 600)	1,600
	(3) Cheque deposited but not yet collected (2,00,000 - 80,000)	1,20,000	1,28,000
Bank Overdraft as per pass book			25,000

Working Notes: Cash Book (With Bank Column)

1. Bank balance	40,000	3. (i) Electricity bill	6,400
3. (ii) Interest credited	12,000	3. (iii) Commission	1,000
3. (iv) Direct deposit	1,000		Bank Charges	600
(+)		(-)

Bank Pass Book

1. Cheques issued	50,000	2. Cheque deposited	1,20,000
(+)		(-)

In simple words: This solution prepares a Bank Reconciliation Statement starting with the Cash Book balance, adding unrecorded bank credits and unpresented cheques, and subtracting unrecorded bank debits and uncollected cheques to arrive at the Pass Book overdraft.

🎯 Exam Tip: When reconciling, carefully distinguish between cheques issued but not presented and cheques deposited but not credited. Also, treat bank charges and interest that appear only in the passbook as adjustments to the Cash Book balance.

 

Question 8.In January 2018, the Pass Book of Mr. Girish Kumbhar showed a bank balance of Rs. 14,000. A comparison of the Cash Book with the Pass Book revealed the following. 1. Cheque deposited but not credited by Bank Rs. 10,000 2. Dividend on shares collected by Bank but not recorded in the Cash Book Rs. 1,000 3. Bank paid Insurance premium as per standing instruction by ECS Rs. 500, no corresponding entry was passed in the Cash Book. 4. Bank debited Commission Rs. 75. 5. A debit of Rs. 900 in respect of cheque dishonored appears in Pass Book only. 6. Cheque of Rs. 1,500 deposited into Bank wrongly recorded twice in the Cash Book. 7. Total cheques of Rs. 20,000 were issued during the month of January 2018, but cheques of Rs. 8,000 only were presented for payment in January 2018. Prepare Bank Reconciliation Statement as of 31st January 2018.
Solution:Bank Reconciliation Statement as of 31st March 2019

Particulars		Amount (Rs.)	Amount (Rs.)
Bank Balance as per pass book			14,000
Add:	(1) Insurance Premium paid and debited only in the pass book	500
	(2) Commission debited in the pass book but not credited in the Cash Book	75
	(3) Cheque dishonored and recorded only in the pass book	900
	(4) Cheque deposited into the bank wrongly recorded twice in the Cash Book (1,500 x 1)	1,500
	(5) Cheque deposited but not credited in the pass book	10,000	12,975
			26,975
Less:	(1) Dividend collected by the bank but not recorded in the Cash Book	1,000
	(2) Cheques issued but not presented for payment (20,000 - 8,000)	12,000	13,000
Bank Balance as per Cash Book			13,975

Working Notes: Cash Book (With Bank Column)

2. Dividend collected	1,000	3. Insurance Premium	500
(-)		4. Commission debited	75
		5. Cheque dishonoured	900
		6. Cheque recorded twice	1,500
		(+)

Pass Book

7. Cheques issued	12,000	1. By Balance b/d	14,000
(+)			Cheque deposited	10,000
		(+)

In simple words: This solution prepares a Bank Reconciliation Statement starting with the Pass Book balance, adjusting for unrecorded bank payments, charges, dishonored cheques, and errors in recording, then subtracting unrecorded bank collections and unpresented cheques to arrive at the Cash Book balance.

🎯 Exam Tip: Be careful with "wrongly recorded twice" entries. If an amount was recorded twice when it should have been once, the adjustment should be for the amount of the extra entry to correct the book.

 

Question 9.Form the following details provided by Prasharit enterprises, prepare a Bank Reconciliation Statement as of 31st March 2018. 1. Overdraft as per Cash Book Rs. 28,000 2. Cheque issued of Rs. 2,000 and presented to Bank returned dishonored but the effect of dishonored is not recorded in the Cash Book. 3. Bank debited Bank charges Rs. 150. 4. Bank transferred Rs. 2,500 to the savings account of the proprietor but not recorded in the Cash Book. 5. Cheque issued to the supplier but not presented to Bank before 21st March 2018, Rs. 1,600 6. Cheques of Rs. 3,000 and Rs. 2,000 were deposited into Bank but cheques of Rs. 3,000 were only credited by Bank before 31st March 2018. 7. Out customer directly deposited Rs. 1,500 in our Bank account but wrongly recorded it in the cash column of the Cash Book. 8. Bank debited interest on overdraft Rs. 750.
Solution:Bank Reconciliation Statement as of 31st March 2018.

Particulars		Amount (Rs.)	Amount (Rs.)
Overdraft as per Cash Book			28,000
Add:	(1) Bank charges debited by the Bank and recorded in the pass book only.	150
	(2) Amount transferred to savings A/c of proprietor not recorded in Cash Book.	2,500
	(3) Interest on overdraft debited only in the pass book.	750
	(4) Cheque deposited but not collected (3,000 + 2,000 - 3,000)	2,000	5,400
			33,400
Less:	(1) Issued Cheque dishonoured recorded only in the pass book.	2,000
	(2) Direct deposit in our bank A/c wrongly recorded in the Cash Book in cash column	1,500
	(3) Cheque issued but not presented for payment.	1,600	5,100
Overdraft as per pass book			28,300

Working Notes: Cash Book (Bank column)

2. Dishonoured cheque	2,000		By Balance b/d	28,000
7. Direct deposit	1,500	3.	Bank charges	150
(-)		4.	Transfer of fund	2,500
		8.	Interest on overdraft	750
(+)

Pass Book

2. Cheque issued	1,600	6. Cheque deposited	2,000
(-)		(+)

In simple words: This problem involves preparing a Bank Reconciliation Statement starting with an overdraft as per Cash Book, adding items like bank charges, transfers, and uncollected deposits not in the Cash Book, and subtracting dishonored cheques, wrongly recorded direct deposits, and unpresented cheques to reach the overdraft as per Pass Book.

🎯 Exam Tip: When starting with an overdraft, remember that items that increase the bank balance in the Pass Book (e.g., unpresented cheques) will decrease the overdraft, and vice-versa. Always consider the ultimate impact on the overdraft figure.

 

Question 10.Prepare Bank Reconciliation Statement as of 31st Dec. 2018 1. Debit balance as per pass book Rs. 16,000 2. Customer directly deposited in our Bank account by NEFT Rs. 8,000. 3. Cheques deposited into Bank but not credited by Bank Rs. 10,500. 4. Pass Book shows a debit entry for Bank commission Rs. 300, not recorded in Cash Book. 5. A Bill of Exchange of Rs. 3,500 was discounted with the Bank in December 2018, returned dishonored in January 2019. 6. As per standing instructions Bank paid the Telephone bill of Rs. 650, not recorded in the Cash Book. 7. Cheque of Rs. 975 deposited into the Bank but wrongly recorded on Rs. 795 in Cash Book.
Solution:Bank Reconciliation Statement as of 31st December 2018.

Particulars		Amount (Rs.)	Amount (Rs.)
Overdraft as per pass book			16,000
Add:	(1) Direct deposit by customer through NEFT not recorded in the Cash Book.	8,000
	(2) Cheque deposited and cleared but wrongly recorded in Cash Book (975 - 795)	180	8,180
			24,180
Less:	(1) Bank commission debited in the pass book but recorded in Cash Book.	300
	(2) A bill of exchange discounted but not recorded in Cash Book.	3,500
	(3) Telephone bill paid by the bank and recorded in pass book only.	650
	(4) Cheque deposited into the bank but not credited in the pass book.	10,500	14,950
Overdraft as per Cash Book			9,230

Working Notes: Cash Book (with Bank column)

2. Direct deposit	8,000	4. Bank commission	300
7. Cheque deposited	180	6. Telephone bill	650
5. Bill of exchange discounted	3,500
(+)		(-)

Bank Pass Book

1. To Balance c/d	16,000	3. Cheque deposited	10,500
(+)		(+)

In simple words: This solution starts with the debit balance as per the Pass Book and adjusts for transactions like direct deposits and cheque recording errors (additions) and bank commissions, dishonored bills, automatic payments, and uncredited cheques (subtractions) to arrive at the overdraft as per Cash Book.

🎯 Exam Tip: When reconciling a debit balance as per passbook (which is an overdraft), items that increase the bank balance in the Cash Book are added, and items that decrease it are subtracted, to arrive at the Cash Book overdraft.

 

Class 11 Commerce Bk Textbook Solutions Digest

• 11th Bk Chapter 1 Practical Problems
• 11th Bk Chapter 2 Practical Problems
• 11th Bk Chapter 3 Practical Problems
• 11th Bk Chapter 4 Practical Problems
• 11th Bk Chapter 5 Practical Problems
• 11th Bk Chapter 6 Practical Problems
• 11th Bk Chapter 7 Practical Problems
• 11th Bk Chapter 8 Practical Problems
• 11th Bk Chapter 9 Practical Problems
• 11th Bk Chapter 10 Practical Problems

 

Class 11

• 12th Commerce BK Chapter 3 Exercise Reconstitution of Partnership (Admission of Partner) Practical Problems Solutions Maharashtra Board
• 11th Commerce BK Chapter 3 Exercise Journal Practical Problems Solutions Maharashtra Board

 

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