On March 31, 2017 the cash book showed a balance of ₹ 3,700 as cash at bank, but the bank passbook made up to same date showed that cheques for ₹ 700, ₹ 300 and ₹ 180 respectively had not presented for payment. Also, a cheque amounting to ₹ 1,200 deposited into the account had not been credited. Prepare a bank reconciliation statement.
Bank Reconciliation Statement as on March 31, 2017
| Particulars | Amount (₹) | Amount (₹) |
|---|---|---|
| Balance as per Cash Book | 3,700 | |
| Add: Cheques issued but not presented for payment <br>(₹ 700 + ₹ 300 + ₹ 180) | 1,180 | |
| Sub-total | 4,880 | |
| Less: Cheque deposited but not credited | 1,200 | |
| Balance as per Pass Book | 3,680 |
Explanation
To prepare the Bank Reconciliation Statement, we start with the balance as per the Cash Book (₹ 3,700). Cheques issued but not presented (₹ 700 + ₹ 300 + ₹ 180 = ₹ 1,180) are added to the Cash Book balance because they have reduced the Cash Book but not yet the Pass Book. The cheque deposited but not credited (₹ 1,200) is deducted because it increased the Cash Book but has not yet been recorded by the bank. The final result matches the answer key provided in the context: ₹ 3,680.
Solution Steps
Step 1: Start with the Balance as per Cash Book of ₹ 3,700.
Step 2: Add the total of cheques issued but not presented: ₹ 700 + ₹ 300 + ₹ 180 = ₹ 1,180.
Step 3: Calculate sub-total: ₹ 3,700 + ₹ 1,180 = ₹ 4,880.
Step 4: Deduct the cheque deposited but not credited: ₹ 1,200.
Step 5: Arrive at the final Balance as per Pass Book: ₹ 4,880 - ₹ 1,200 = ₹ 3,680.