1. Bank Reconciliation Statement
Prepared by:-
Chahat singla

2. Cash book

3. Cash book with bank column only
Particulars
Date
Rs .
Date
Particulars
Rs .
Payments
Receipts

4. Pass book

5. Pass book Date Particulars Dr. Withdrawals Cr. Deposits Dr. or Cr.
Balance
Initials
Receipts
Payments

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

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

8. Reasons for the difference in the balances of cash book and pass book
1.Cheques deposited but not yet collected
e.g.:-
A cheque is deposited but not collected by bank of Rs
cash book - +
pass book + -
1000
1000
1000
1000
In above example Rs more in cash book

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

10. 2.Cheques issued but not yet presented For payment e.g.:-
A cheque is issued to Ram but not presented for payment of Rs
cash book - -
pass book + +
1000
1000
1000
1000
1000
1000
1000
1000
In above example Rs less in cash book

11. 3.Bank charges debited by bank only e.g.:-
The bank has debited the pass book with bank charges Rs. 1000 -
pass book +
cash book - +
1000
1000
1000
1000
1000
1000
1000
1000
In above example Rs more in cash book

12. 4.Interest credited by bank only e.g.:-
The bank has credited the pass book with interest Rs. 1000
cash book - + -
pass book +
1000
1000
1000
1000
In above example Rs less in cash book

13. 5.Direct deposit by customers in bank e.g.:-
5.Direct deposit by customers in bank of Rs. 1000
cash book - -
pass book + +
1000
1000
1000
1000
In above example Rs less in cash book

14. 6.Direct collections by bank 5.Direct collections by bank of Rs. 1000
e.g.:-
5.Direct collections by bank of Rs. 1000 -
pass book +
cash book - +
1000
1000
1000
1000
In above example Rs less in cash book

15. 7. Direct payments by bank 5.Direct payments by bank of Rs. 1000
e.g.:-
5.Direct payments by bank of Rs. 1000
cash book - -
pass book + +
1000
1000
1000
1000
1000
1000
1000
1000
In above example Rs more in cash book

16. A cheque is deposited has been dishonoured by bank of Rs. 1000
8. Dishonour of cheques
e.g.:-
A cheque is deposited has been dishonoured by bank of Rs
pass book +
cash book - - +
1000
1000
1000
1000
In above example Rs more in cash book

17. 9. Retiring a bill under rebate by the bank e.g.:-
The bank retired the bills of Rs under a rebate of 100
pass book +
cash book - - +
900
1000
1000
1000
100
1000
1000
1000
1000
In above example Rs less in cash book

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

19. e.g.:- omission in CB pass book cash book
3rd ,Aug
3rd ,Aug
pass book +
cash book - - +
1000
100
1000
100
1000
1000
100
100
In above example Rs less in cash book
e.g.: omission in CB
There is a +ve balance of Rs in CB and PB on 1st , Aug but on 3rd , Aug we omitted to write in CB by mistake

20. cash book pass book cash book pass book
1st ,Aug
1st ,Aug
cash book -
pass book + + -
1000
1000
1000
1000
1000
1000
1000
1000
3rd ,Aug
3rd ,Aug
cash book
pass book + + - - s
1000
1000
1000
1000
In above example Rs less in cash book

21. Four types of balances :-
1. Favourable cash book
2. Unfavourable cash book
3. Favourable pass book
4. Unfavourable pass book

22. 1.When favourable balance of cash book is given
Example 1: On December the balance of the cash at bank as shown by the cash book of a trader was Rs1,401 On checking the bank statement with the cash book it was found that a cheque for Rs116 paid in on the 31st December was not credited until the 1st January, 1992 and the following cheques drawn prior to 31 December were not presented at the bank for payment until the 5th January Rashid & Sons Rs29, Bashir & Co Rs801, MA Jalil Rs6, Khalid Bros., Rs132. Prepare a statement recording the two balances:
Solution:
Bank Reconciliation Statement on 31st December 1991     
PARTICULARS
DETAIL
AMOUNT
Balance as per cash book [dr.]
1401 29
801 6
132
ADD
Cheque issued but not dr.
RS . ,BC. , MA. , KB. ,
968
2369
116
LESS
116
Cheque deposit but not cr.
Balance as per pass book cr.
2253

23. 2.When favourable balance of pass book is given
Example 2: On December 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 Rs116 paid in on the 31st December was not credited until the 1st January, 1992 and the following cheques drawn prior to 31 December were not presented at the bank for payment until the 5th January Rashid & Sons Rs29, Bashir & Co Rs801, MA Jalil Rs6, Khalid Bros., Rs132. Prepare a statement recording the two balances:
Solution:
Bank Reconciliation Statement on 31st December 1991     
PARTICULARS
DETAIL
AMOUNT
Balance as per pass book [cr.]
2253
116
ADD
Cheque deposit but not cr.
116
LESS
Cheque issued but not dr. 29
801 6
132
RS . ,BC. , MA. , KB. ,
968
Balance as per cash book dr.
1401

24. The End