Bank Reconciliation Statement
Problems & Solutions
Problem 1: Favorable Balance (Starting from Cash Book)
Problem Statement:
On December 31, 2024, the cash book of ABC Trading Company showed a favorable (debit) balance of ₹15,000. Upon comparing with the bank statement, the following discrepancies were noted:
- Checks issued but not yet presented for payment: ₹2,500
- Checks deposited but not yet credited by bank: ₹1,800
- Bank charges debited by bank not recorded in cash book: ₹120
- Interest credited by bank not recorded in cash book: ₹250
- Direct deposit by customer not recorded in cash book: ₹3,000
- Check dishonored by bank not recorded in cash book: ₹500
Required: Prepare a Bank Reconciliation Statement to find the balance as per bank statement.
Problem 2: Favorable Balance (Starting from Bank Statement)
Problem Statement:
On June 30, 2024, the bank statement of XYZ Corporation showed a favorable (credit) balance of ₹22,000. The following differences were identified when comparing with the cash book:
- Checks issued to suppliers but not yet presented: ₹4,200
- Checks received from customers deposited but not yet cleared: ₹2,100
- Bank collected dividend on behalf of company: ₹1,500 (not in cash book)
- Standing order for insurance premium paid by bank: ₹800 (not in cash book)
- Bank service charges: ₹150 (not in cash book)
- Wrong credit by bank (error): ₹300 (needs reversal)
Required: Prepare a Bank Reconciliation Statement to find the balance as per cash book.
Problem 3: Bank Overdraft (Starting from Cash Book)
Problem Statement:
On March 31, 2024, the cash book of DEF Enterprises showed an overdraft balance of ₹8,500. When compared with the bank statement, the following discrepancies were found:
- Checks issued but not yet presented for payment: ₹3,200
- Checks deposited but not yet credited by bank: ₹2,500
- Bank charges for overdraft interest: ₹180 (not in cash book)
- Direct payment by customer: ₹4,000 (not in cash book)
- Standing order for rent payment: ₹1,200 (not in cash book)
- Check returned due to insufficient funds: ₹750 (not in cash book)
Required: Prepare a Bank Reconciliation Statement to find the balance as per bank statement.
Problem 4: Bank Overdraft (Starting from Bank Statement)
Problem Statement:
On September 30, 2024, the bank statement of GHI Limited showed an overdraft of ₹12,800. Comparison with the cash book revealed the following differences:
- Checks drawn but not yet presented for payment: ₹5,600
- Checks paid into bank but not yet cleared: ₹3,400
- Interest on overdraft charged by bank: ₹320 (not in cash book)
- Payment made by bank as per standing instruction: ₹900 (not in cash book)
- Direct deposit by debtor into bank account: ₹2,800 (not in cash book)
- Bank charges for processing: ₹95 (not in cash book)
- Check deposited but dishonored: ₹1,100 (not in cash book)
Required: Prepare a Bank Reconciliation Statement to find the balance as per cash book.