On 31st March, 2004 the Pass Book of Mr. Patel showed a credit balance ₹ 9,500. A comparison of Pass Book and Cash Book revealed the following. 1. Cheques deposited but not yet cleared by 31st March, 2004 ₹ 2,500. 2. Insurance premium paid by the bank on behalf of Patel but not recorded in the Cash Book ₹ 300. 3. Cheques issued by Patel but not presented for payment before 31st March, 2014, ₹ 4,000. 4. Bank commission not yet recorded in the Cash Book ₹ 50. 5. Interest on bonds collected by the bank of Patel not yet recorded in the Cash Book ₹ 800. From the above particulars prepare a Bank Reconciliation Statement as on 31st Mar., 04.
Dear Student,
Hope the explanation below helps you understand the statement; Do let us know in case of any further query;
Regards,
Hope the explanation below helps you understand the statement; Do let us know in case of any further query;
| Bank Reconciliation Statement as on 31 Mar 2004 | ||
| Particulars | Plus Amount | Minus Amount |
| Balance as per pass book (Credit balance in Pass book is a positive balance) | 9,500 | |
| Add: Cheques deposited but not yet cleared (This mean that Cash book was already increase but in Pass book nothing was added up) | 2,500 | |
| Add: Insurance Premium paid directly by Bank (Bank has deducted it earlier and not deducted from Cash book so added back to bring it in line with Cash Book) | 300 | |
| Less: Cheque issued not presented fro payment | 4,000 | |
| Add: bank Commission not yet recorded in Cash Book | 50 | |
| Less: interest on Bonds collected by bank not yet recorded in Cash book | 800 | |
| Total | 12,350 | -4,800 |
| Balance as per Cash Book | 7,550 |
Regards,