Cash book Cash book with bank column only

Cash book

Cash book with bank column only Date Particulars Rs. Date Particulars s c e R pt i e e s t n Pa ym Rs.

Pass book

Pass book Date Particulars Dr. Withdrawal s Cr. Deposits Dr. or Balance Cr. Initials

Bank reconciliation statement is a statement that makes to reconcile the balances of cash book and pass book.

BANK Depositor’s records Bank’s books Beginning balance Rs. 10000 Beginning balance Cheque deposit balance Rs. 10000 Rs. 1000 Rs. 11000 The difference is Of Rs. 1000 Cheque deposited but not Cr. By bank 1000 Of Rs.

1. Cheques deposited but not yet collected e. g. : A cheque is deposited but not collected by bank of Rs. 1000 - + 0

Cheque recieved Entered in pass book 1 Deposit in bank process Bank

2. Cheques issued but not yet presented For payment - + 0 - + 1000

3. Bank charges debited by bank only - + 1000 - + 0

4. Interest credited by bank only - + 0 1000

5. Direct deposit by customers in bank of Rs. 1000 - + + 0 1000

6. Direct collections by bank 5. Direct collections by bank of Rs. 1000 - + 0 1000

7. Direct payments by bank 5. Direct payments by bank of Rs. 1000 - + 0

8. Dishonour of cheques A cheque is deposited has been dishonoured by bank of Rs. 1000 - + 0

9. Retiring a bill under rebate by the bank The bank retired the bills of Rs. 1000 under a rebate of 100 - + 1000 0 + 1000 100

10. Errors and omissions in cash book and pass book There is a +ve balance of Rs. 1000 in CB and PB on 1 st , Aug but on 3 rd , Aug we write 100 in CB by mistake - + + 1000 0 1000

- + + 1000 0 1000 There is a +ve balance of Rs. 1000 in CB and PB on 1 st , Aug but on 3 rd , Aug we omitted to write in CB by mistake

- + + - 0 1000 + s 1000 - + - 0 0 1000

1. When favourable balance of cash book is given Example 1: On December 31 1991 the balance of the cash at bank as shown by the cash book of a trader was Rs 1, 401 On checking the bank statement with the cash book it was found that a cheque for Rs 116 paid in on the 31 st December was not credited until the 1 st January, 1992 and the following cheques drawn prior to 31 December were not presented at the bank for payment until the 5 th January 1992. Rashid & Sons Rs 29, Bashir & Co Rs 801, MA Jalil Rs 6, Khalid Bros. , Rs 132. Prepare a statement recording the two balances: Solution: Bank Reconciliation Statement on 31 st December 1991

2. When favourable balance of pass book is given Example 2: On December 31 1991 the balance as shown by the bank statement was 2, 253. On checking the bank statement with the cash book it was found that a cheque for Rs 116 paid in on the 31 st December was not credited until the 1 st January, 1992 and the following cheques drawn prior to 31 December were not presented at the bank for payment until the 5 th January 1992. Rashid & Sons Rs 29, Bashir & Co Rs 801, MA Jalil Rs 6, Khalid Bros. , Rs 132. Prepare a statement recording the two balances: Solution: Bank Reconciliation Statement on 31 st December 1991 968

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