Bank Reconciliation Statement Solved example 1
Sunil’s Cash Book (Bank Column only) for the month of January 2008 was as follows:
|
| Dr. |
|
| Cheque No. | Cr. |
Jan 1 | Balance b/d | 600 | Jan 5 | Ramesh | 10110 | 410 |
Jan 9 | Cash | 420 | Jan 24 | Sudhir | 10111 | 290 |
Jan 31 | Cash | 720 | Jan 30 | Drawings | 10112 | 250 |
|
|
| Jan 31 | Balance c/d |
| 790 |
|
| 1740 |
|
|
| 1740 |
He received the following Statement from his Bank at the beginning of February 2008
Date | Details | Payments ($) | Receipts ($) | Balance |
Jan 1 2008 | Balance brought forward |
|
| 700 |
Jan 7 | Cheque 10110 | 410 |
| 290 |
Jan 9 | Cheque 10109 hint-1 | 100 |
| 190 |
Jan 9 | Cash |
| 420 | 610 |
Jan 15 | Banker’s Order-Insurance hint-2 | 140 |
| 470 |
Jan 30 | Cheque 10112 | 250 |
| 220 |
Jan 31 | Deposit Interest |
| 80 | 300 |
You are required to :
- Bring the Cash Book up to date, starting with the balance carried down of $790 on 31 January 2008.
- Prepare a Statement, under its proper titles, to reconcile the difference between your amended Cash Book balance and the balance in the Bank Statement on 31 January 2008.
Hint 1
Compare all cheques in Bank Statement with the Cash Book. 10109 does not appear in Cash Book. Looking at the Cheque no. we can know that it is cheque drawn out from the previous month but presented by payee in January. No adjustment required in the books.
Hint 2
This is insurance payment made by bank on behalf of Sunil.
Solution Question 1
Cash Book
($) | ($) | ||||
2008 | Balance b/d | 790 | 2008 Jan 31 | Insurance Premium | 140 |
| Deposit Interest | 80 |
| Balance c/d | 730 |
|
| 870 |
|
| 870 |
Feb 1 | Balance b/d | 730 |
|
|
|
Bank Reconciliation Statement
($) | |
Balance as per Cash Book | 730 |
Less Uncredited Cash deposit at 31 January | 720 |
| 10 |
Add Unpresented Cheque | 290 |
Balance as per Bank Statement | 300 |
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