Solution of Bank Reconciliation Statement (BRS)

Solution and Problem of Bank Reconciliation Statement (BRS)

Bank Balance as per Cashbook

Practice problem 1

The following information is given to you

a.       Bank Balance as per cash book 20000

b.      Cheque issued of 5000 but not presented for payment

c.       Interest on deposit allowed by the bank 5000 but not recorded in the cashbook

d.      bank charges charged by the bank 200 but not recorded in the cash book

Required: Bank Reconciliation Statement

Bank Reconciliation Statement

 

Practice problem 2

From the following particulars, prepare a Bank Reconciliation Statement

a.       Debit balance as per cash book 15000

b.      Three cheques of 1500, 2500 and 3000 were issued, but not presented for payment

c.       A cheque of 2000 paid into the bank for collection, but not collected by the bank

d.      Bank charges debited in passbook but not recorded in cashbook 1000

e.      Interest collected and credited by the bank but not entered in the cash book of 1500

Bank Reconciliation Statement 

Bank 

Practice problem 3

 Mr Arun Shrestha has found that on 31^st Dec. 2004 his cash book shows a Bank balance of 21500. On comparing it with the passbook he found that:

a.       Cheque of 1200 issued, out of which cheques for 2000 only were presented for payment.

b.      A cheque of 1000 deposit but dishonoured by the bank

c.       Cheques for 8000 were deposited into a bank but only for 3000 were cleared by the bank

d.      Interest on investment of 3200 collected by the bank but not recorded in the cashbook.

Required: Bank Reconciliation Statement

Solution

Bank Reconciliation Statement

 

Practice problem 4

From the following particulars, prepare a Bank Reconciliation Statement as of 31^st March 2004

        i. Balance as per cashbook on 31^st March 2004 was 12000

       ii. Cheques deposited in the bank on 27^th March 6000 credited in the passbook on 5^th April 2004

     iii. Interest 14 credited by the bank on 31^st March 2004 were not presented to the bank till 31^st March 2004

     iv. Cheques worth 8000 issued prior to 31^st March 2004 were not presented

       v. Bank charges 18 recorded in passbook only.

     vi. Cheques issued to a creditor for 500 by mistake entered in the cash column of the cashbook. The cheque had not been presented for payment.

Solution

Bank Reconciliation Statement

[For transaction (.vi) it has no adverse effect on agreement of balance as per cash book and passbook. It is not shown in the bank reconciliation statement]

 

Practice problem 5

From the following particulars supplied by Mr Ramesh Jaiswal, prepare a Bank Reconciliation Statement as of 31^st Dec 2004

a.       The cheque of 900 was deposited in the bank in December 2004 but were realized by the bank in Jan 2005.

b.      Cheque issued to Rajan for 225 in Dec. 2004 were encashed in Jan 2005.

c.       Cheque for 200 received from Prema on 26^th December was entered in the cash book but not deposited into the bank.

d.      Cheque for 500 and interest on investment 100 collected by the bank were entered in the passbook only.

e.      Payment side of the cash book was undercast by 10

f.        Balance as per cash book on 31^st December, 2004 was 3000

Solution

Bank Reconciliation Statement

 

Practice problem 6

From the following particulars, ascertain the bank balance in the passbook of Mohan as 31^st Dec. 2004

a.       The bank overdraft as per cash book on 31^st Dec, 2004 was 10000

b.      Interest on overdraft of 400 is debited in the Passbook

c.        Bank charges charged by the bank amounting to 100

d.      Cheque issued of 4000 but only cheque of 1000 were presented for payment

e.      Cheques paid into a bank of 7000 but only cheque of 2000 was credited by the bank

f.        Interest on investment collected by the bank 4000  but recorded in cashbook as 400

Solution

Bank Reconciliation Statement

 

Practice problem 7

Following facts were given to you

Balance as per cashbook (Cr)      1400

Unpresented cheque.                1720

Uncredited cheques by the bank.    1130

You have been given the following figures as additional information

1.      The debit side of the cash book (bank column) has been undercast by 250

2.      A cheque for 200 paid to the creditor has been wrongly entered in the cash column.

3.      Bank commission and other charges for the services 40 have not been recorded in the cashbook.

Required: Bank Reconciliation Statement

Bank Reconciliation Statement

Note

It is overdraft when Cass book is credited (cr)

It is overdraft when the passbook is debited

Practice Problem 8

Consider the following information:

a.       Bank overdraft as per cash book 8110

b.      Cheques deposited as per bank statement but not entered in cashbook 260

c.       Cheques recorded for collection but not sent to the bank 900

d.      Bank charges recorded twice in cash book 50

e.      Credit side of Bank column shirt 200

f.        Customer’s cheque returned being dishonoured but not recorded in cashbook 700

g.       Cheques issued but dishonoured on technical grounds 1000

h.      Bills collected by the bank directly 1300

i.        Cheques received entered twice in cashbook 200

Required: Bank Reconciliation Statement

Solution

Bank Reconciliation Statement

 

Balance as per passbook

Practice problem 1

From the following, prepare the bank reconciliation statement

a.       Balance as per pass book 12000

b.      Cheques were drawn for 10000 but cheques of 5000 has been presented for payment

c.       Interest credited by the bank 250

d.      Bank charges debited by the bank 50

e.      Cheque paid into bank but the same has NAT been cleared by the bank 3500

Solution

Bank Reconciliation Statement

 

Practice problem 2

Prepare a Bank Reconciliation Statement for the following transactions

a.      Balance as per pass book (credit) is 16000

b.      Cheques were drawn for 8000 but presented for payment amounting to 4000

c.       Cheques issued but omitted to be recorded in the cash book of 500

d.      Cheques deposited into a bank but omitted to be recorded in the cash book of 600

e.      The receipts side of cash book over cost by 1000

f.        Bank gave the debit of 35 for sundry charges

g.      Bank received directly from the customer 500 but not recorded in the cashbook

Solution

Bank Reconciliation Statement

 Practice problem 3

The following information is given to you as of 31^st December 2005

a.       Bank balance as per passbook 5000

b.      A cheque for 700 issued to a creditor was lost in transit and not presented for payment

c.       A cheque for 840 had been debited in the bank column of the cash book but it has not been sent to the bank

d.      Interest on overdraft debited by the bank 140

e.      Payment side of cashbook has been undercast by 240

f.        Interest on investment collected by the bank 340

Required:  Bank Reconciliation Statement, showing the balance as per Cashbook

Solution

Bank Reconciliation Statement

 

Practice problem 4

The following information is given to you

a.       Credit balance as per passbook 50000

b.      A cheque for 40000 issued was entered in the cash column of the cashbook instead of the bank column and cashed by the bank.

c.       Cheque paid into bank but omitted to be recorded in the cash book amounting to 16600

d.      A bill receivable for 56000 which was discounted with the bank Dishonoured on the due date

e.      Debit side of the cash book has been undercast by 28000

Required: Bank Reconciliation Statement

Solution

Bank Reconciliation Statement

 

Practice problem 5

The following information is given to you. You are required to prepare Bank Reconciliation Statement.

a.       Credit balance as per passbook 7200

b.      Cheques not presented for payment yet 10000

c.       Cheques sent for deposit but not collected by the bank 3120

d.      A cheque issued to Sarita but omitted to be recorded in cashbook 2400

e.      The debit card of the bank column cash book has been undercast by 6000

f.        Bank charges 960 has not been entered in the cash book.

 

Solution

Bank Reconciliation Statement