Bank Reconciliation Statement Problems and Solutions
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Problem 1:
From the following particulars prepare a Bank Reconciliation Statement to find out the causes of difference in two balances as on August 31st, 2016 for Four Star (Pvt.) Ltd.
(i) Bank Overdraft as per Bank Statement ……………………………………….………. 17,000
(ii) Check issued but not encashed during the August ………………………………….. 2,200
(iii) Dividends on shares collected by banker …………………………….…………….… 2,300
(iv) Interest charged by the bank recorded twice in the Cash Book ……………..……. 500
(v) Check deposited as per Bank Statement not entered in Cash Book ……….…..… 3,400
(vi) Credit side of the Bank column in Cash Book cast short ……………….…………… 1,000
(vii) Clubs dues paid by bank as per standing instruction not recorded in Cash Book … 1,200
(viii) Uncredited check due to outstation …………………………………………………. 3,900
Solution:
>> Practice by using Bank Reconciliation Statement Format.
Problem 2:
From the following particulars, you are required to find out the errors in cash book and bank statement by using missing method and prepare Bank Reconciliation Statement as on 31-12-2016, for Chand Bibi Ltd:
(i) Bank balance overdraft as per cash book …………………………………………………….. 80,000
(ii) Check recorded for collection but not sent to the bank ………………..………………… 10,000
(iii) Credit side of the cash book cast short ………………………………………………………… 1,000
(iv) Premium on proprietor’s Life Insurance Policy (LIP) paid on standing order ……………..…5,000
(v) Bank Charges recorded twice in the cash book …………………………………………………… 100
(vi) Customer’s check returned by the bank as dishonored ………………………………………. 4,000
(vii) Bill Receivable collected by the bank directly on the behalf of company ……………………. 20,000
(viii) Check received entered twice in the cash book ………………………………………………….. 6,000
(ix) Check issued but dishonored on technical grounds ………………………………………………. 3,000
(x) A checks deposited into the bank of worth Rs. 45,000 but Rs. 8,000 check was not collected by bank
Solution:
>> Study Bank Reconciliation Statement theory related questions and answers.
Problem 3:
From the following particulars, find out the errors in cash book and bank statement and prepare Bank Reconciliation Statement as on 31-05-2016 for Ammar Ahmed Sugar Mill Ltd:
i. Balance as per bank statement overdraft of Rs. 2,118.
ii. The debit side of the cash book had been undercast by Rs. 300.
iii. A check for Rs. 182 drawn for the payment of telephone bill had been entered in the cash book as Rs. 281 but was shown correctly in the bank statement.
iv. A check for Rs. 210 by the customer having been deposited into bank was dishonored by the bankA check was credited twice in Cash Book for worth Rs. 3,000.
v. A Dividend of worth Rs. 90 had been collected by the bank but not recorded in the cash book.
vi. Checks Rs. 3,000 drawn in December but only 1,200 presented for payment.
vii. Interest amounting 228 had been debited by the bank but not entered in the cash book.
viii. A check for Rs. 2,077 was issued by the company for purchase of merchandise and was paid by the bank but not recorded in company’s book.
ix. A check for Rs. 10,500 issued to Salman & Co. for purchase of Equipment was not encashed.
Solution:
>> You must have understanding of Cash Book in order to understand Bank Reconciliation Problems and Solution.
Problem 4:
Prepare Bank Reconciliation Statement for the month of December, 2007 by missing method using T accounts (for cash book and for bank statement) and Reconciliation Statement:
The cash book of M/S Universal Trading Company shows a cash book balance of Rs. 102,568 in Soneri bank Ltd. as of 31-12-2007. In January, 2008 the firm received a bank statement for the month of December, 2007 showing a credit balance of Rs. 118,068. Comparison of bank statement with the cash revealed the following anomalies
i. Check issued totaling Rs. 115,250 recorded in cash book but not appeared in the bank statement.
ii. Check received from customers amounting to Rs. 75,850 deposited and properly accounted for in the cash book was not credited by bank.
iii. Check received from the following customers were returned unpaid by the bank.
iv. Check from Ghazi Autos received on 5-12-2007 for Rs. 1,200.
v. Check from Rahil Bros. received on 20-12-2007 for Rs. 18,500.
vi. Check form Akmal Sons was received on 27-12-2007 for Rs. 2,000.
vii. Excise duty debited by bank Rs. 200.
viii. Bank charges debited by bank Rs. 1,200.
ix. Charged commission on collection of outstation check by bank of worth Rs. 800.
Solution:
Related Questions
Bank Reconciliation Examples
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Bank Reconciliation Exam Questions
Bank Reconciliation Exercises
References
Mukharji, A., & Hanif, M. (2003). Financial Accounting (Vol. 1). New Delhi: Tata McGraw-Hill Publishing Co.
Narayanswami, R. (2008). Financial Accounting: A Managerial Perspective. (3rd, Ed.) New Delhi: Prentice Hall of India.
Ramchandran, N., & Kakani, R. K. (2007). Financial Accounting for Management. (2nd, Ed.) New Delhi: Tata McGraw Hill.
0.2 On 31 July, 2005, a trader has an overdraft of Rs. 10000 as shown by the bank column of his as per bank statement is Rs 4920. It is, however, discovered that cheques for Rs. 1000 deposited into the bank remained uncredited in the Pass Book upto this date. So another cheque for Rs. 2700 is as yet unpaid. Further, the Pass book is debited with Rs. 20 for the bank charges Rs. 100 for interest on overdraft and Rs. 500 for insurance premium as per treader’s instructions, and credited with Rs. 4000 directly deposited by a customer of the trader but none of these items as yet appears in the Cash Book
Prepare a Bank Reconciliation Statement:
Balance as per Cash Book (Cr) 10,000
Add:
Bank Charges 20
Interest on O/D 100
Insurance P. 500
Uncredited 1,000
Less:
Direct Payment 4,000
Unpaid 2,700
Balance As per Bank Statement (Dr) 4,920
Good day , on the answers it seems you forgot to enter the overdraft opening balance as a negative hence u added it instead of subtracting it and the final answer becomes incorrect . Or it’s me who is wrong please assist .
I don,t understand about this topic what this logic of this topic
Hello,
How will you prove that your bank reconciliation is correct?
It is incredibly, very user-friendly and user friendly. Great job for the fabulous site.
Practice questions are very good in pdf files. Thank you Zaheer Swati
Excellent set of problems related to BRS. Thank you admin…
Thank you so much.
In Q.No 2 (iv) when we pay the LIP then according to pass book it should be less so why should you add it? Please reply
Thanks.thank you so much but I want some more problems
Hello, i have an issue in the reconciliation in this way. how do you determine the answers you get after preparing the statement are correct? are they to equal to the corrected cash book balance or?thanks
go through lrdgers and withdraws and deposits if it coorect the brs is coorect
Please anyone help me in a DISPOSAL OF AN ASSET DEEPLY.
Please anyone help me in a provision for depreciation .I can’t understand this
Question .Consider as an Addimera –co had been received the bank statement from CBE just at the end of January 30 2011 E.C and try to prepare bank reconcillation based on the following information below.
Balance per bank statement was $40,000
Balance per depositor recording in January 30 was $34,600
Check outstanding was $ 550.50
Check of $450 in voucher payment was erroneously recorded in the check register as $540
Deposit in-transit was $250.75
Debit memo of bank for service charge was $24.23
Credit memo of bank for receivable was$5034.48
Prepare bank reconciliation?
please show me
Balance as per bank statement=40000,
+cheque outstanding 550.50,
+wrongly enter in cheque register 90,
+ credit memo for bank receivable 5034.48,
-Deposit in transit -250.75.
-Debit memo of service charges -24.23
Balance as per Cash book Dr. (34600)
Instead of + sign it is – & vice-versa..u Get the answer
I have an accounting question please help me it’s homework for Tuesday reply as fast as you can please!!!! So could you me???
I have aiou first semester assainment for bba principle of accounting