From the following particulars, prepare a bank reconciliation statement as at March 31, 2017. (i) Balance as per cash book ₹ 3,200 (ii) Cheque issued but not presented for payment ₹ 1,800 (iii) Cheque deposited but not collected upto March 31, 2014 ₹ 2,000 (iv) Bank charges debited by bank ₹ 150
Bank Reconciliation Statement as at March 31, 2017
| Particulars | Amount (₹) | Amount (₹) |
|---|---|---|
| Balance as per Cash Book | 3,200 | |
| Add: Cheque issued but not presented for payment | 1,800 | |
| 5,000 | ||
| Less: Cheque deposited but not collected | 2,000 | |
| Less: Bank charges debited by bank | 150 | |
| Balance as per Pass Book | 2,850 |
(Note: The total of Plus items is ₹ 5,000 and total of Minus items is ₹ 2,150. The difference is ₹ 2,850, which is the credit balance as per the Pass Book.)
Explanation
To prepare the Bank Reconciliation Statement, we start with the balance as per the Cash Book (₹ 3,200).
- Cheques issued but not presented (₹ 1,800): These reduce the balance in the Cash Book when issued but have not yet been paid by the bank. Therefore, the Pass Book balance is higher than the Cash Book. This amount is added.
- Cheques deposited but not collected (₹ 2,000): These increase the balance in the Cash Book when deposited but have not yet been cleared by the bank. Therefore, the Pass Book balance is lower. This amount is subtracted.
- Bank charges (₹ 150): The bank debits the account directly, reducing the Pass Book balance, but this entry is not yet in the Cash Book. Therefore, the Cash Book balance is higher than the Pass Book. This amount is subtracted. The final calculated balance as per the Pass Book is ₹ 2,850.
Solution Steps
Step 1: Start with the Balance as per Cash Book (Dr.) of ₹ 3,200.
Step 2: Add the amount of Cheques issued but not presented (₹ 1,800) because the bank has not yet paid them, making the Pass Book balance higher. (Sub-total: 3,200 + 1,800 = 5,000).
Step 3: Subtract the amount of Cheques deposited but not collected (₹ 2,000) because the bank has not yet cleared them, making the Pass Book balance lower.
Step 4: Subtract the Bank charges (₹ 150) debited by the bank, as they reduce the Pass Book balance but are not yet recorded in the Cash Book.
Step 5: Calculate the final balance: 5,000 - 2,000 - 150 = ₹ 2,850.