Livestock Economics, Marketing and Business Management

ILLUSTRATION

• Using the following particulars, prepare the Bank Reconciliation Statement as on 31 December 2005.
  • Bank balance as per Cash Book on that date was Rs.45000.
  • Cheques paid into bank, but not collected before that date amounted to Rs.12250.
  • Cheques drawn but not presented before that date were of the value of Rs.7900.
  • There were the following entries in the Passbook for which there were no entries in the Cash Book: Bank Interest Rs.150 and Life Policy Premium Paid by the bank on standing order Rs.750.
  • Cheques for Rs.4500 were entered in the Cash Book as banked but had been omitted to be banked.

Solution

Bank Reconciliation Statement as on 31 December 2005

Particulars	Rs	Rs
Bank balance as per Cash Book		45000
Add Cheques drawn but not cleared to data	7900
Add Bank interest credited in Passbook	150	8050
		53050
Less Cheques banked but not collected date	12250
Less Life Policy Premium debited in Passbook	750
Less Cheques wrongly recorded as banked	4500	17500
		35550