# 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

 Particular Amount Amount Bank balance as per cash book 20000 Add: :- Cheque issued but not presented for payment 5000 :- Interest on deposit allowed by the bank but not recorded in Cashbook 500 5500 25500 Less: :- Bank charges charged by the bank but not recorded in the cashbook 200 :- Cheque deposited into a bank but has not been collected by the bank 7000 (7200) Balance as per Cashbook 18300

### 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

 Particular Amount Amount Bank balance as per cash book Add: A cheque was issued but not present for payment Interest collected and credited by the bank but not entered in a cashbook 7000 1500 15000      8500 Less: A cheque paid into the bank for collection but not collected by the bank Bank charges debited in passbook  but not entered in a cashbook 2000  1000 23500      (3000) Balance as per passbook 20500

Bank

Practice problem 3

Mr Arun Shrestha has found that on 31st 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

 Particulars Detail Amount Cash balance as per Passbook Add: :- Cheque issued but only a few were presented for payment :- Interest on investment collected by the bank but not recorded in the cashbook 10000  3200 21500      13200 Less: :- A cheque deposited but dishonoured by the bank :- Cheque was deposited into a bank but only were cleared by the bank 1000 5000 34700     (6000) Balance as per cash book 28700

### Practice problem 4

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

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

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

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

iv. Cheques worth 8000 issued prior to 31st 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

 Particular Amount Amount Bank balance as per cash book Add: :- Interest credited by the bank was not entered in a cashbook :- Cheque issued were not presented to the bank 14 8000 12000     8014 Less: :- Cheque deposited in the bank on 27th march credited in the passbook on 5th April 2004 :- Bank charges recorded in passbook only. 6000 18 20014      (6018) Balance as per passbook 139913996

[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 31st 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 26th 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 31st December, 2004 was 3000

Solution

Bank Reconciliation Statement

 Particular Amount Amount Bank balance as per cash book Add: :-  Cheque issued to Rajan in Dec., 2004 were encashed in Jan, 2005 :-  Cheque and interest on investment collected by the bank were entered in the passbook only. 255   600 3000       855 Less: :- The cheque was deposited in the bank in December, 2004 but were realized by the bank in Jan, 2005. :-  Cheque received from Prema on 26th December was entered in the cash book but not deposited into the bank. :- Payment side of the cash book was undercast 900   200 10 3855           (1110) Balance as per passbook 2745

### Practice problem 6

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

a.       The bank overdraft as per cash book on 31st 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

 Particulars Detail Amount The bank overdraft as per cash book Add: (d)   Cheques issued but only some cheques were presented for payment (e)   Interest on investment collected by the bank   but only a few amount recorded in the cashbook 3000   3600 (10000)         6600 Less: (b) Interest on overdraft is debited in the Passbook (c) Bank charges charged by the bank (e)   Cheques paid into the bank of but only some cheque was credited by the bank 400 100  5000 (3400)      (5500) Overdraft balance as per passbook 8900

### 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

 Particulars Detail Amount The bank overdraft as per cash book Add: :- Unpresented cheques :- The debit side of the cashbook has been undercast 1720  250 (1400)      1970 Less: :- Uncredited Cheques by bank :- A cheque paid to the creditor has been wrongly entered in the cash column :- Bank commission and other charges for the services, have not been recorded in the cashbook. 1130 200 40 570        (1370) Overdraft as per passbook 800

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

 Particulars Detail Amount Overdraft as per cash book Add: (c) Cheques recorded for collection but not sent to the back (e) Credit side of the bank column cast short in the cash book (f) Customer cheque returned dishonoured but not recorded in the cashbook (i) Cheques received entered twice in a cashbook 900 200  700 200 (8110)          2000 Less (b)   Cheques deposited but not entered in a cashbook (d) Bank Charges recorded twice in a cashbook (g) Cheque issued but dishonoured (h) Bills directly collected by bank 260 50 10001300 10110         (2610) Overdraft as per cash book 7500

## 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

 Particulars Detail Amount Balance as per passbook Add: (d) Bank Charges debited by the bank (e) Cheques paid into bank but has not been cleared by the bank 50 3500 12000       3550 Less: (b) Cheques were drawn but only a few cheques have been presented for payment (C) Interest credited by the bank 5000 250 15550      (5250) Balance as per cash book 10300

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

 Particulars Detail Amount Balance as per passbook Add (C) Cheques issued but omitted to record in a cashbook (e) The receipts side of cash book over cost (f) Bank gave the debit for sundry charges 500 1000 35 16000       1535 Less: (b) Cheques were drawn but not presented for payment (d) Cheques deposited into a bank but omitted to be recorded in the cash book (g) Bank received directly from a customer but not recorded in the cashbook 4000  600  500 17535         (5100) Balance as per passbook 12435

### Practice problem 3

The following information is given to you as of 31st 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

 Particulars Detail Amount Bank balance as per passbook Add: (c) A cheque has been debited in the bank column of the cashbook but it had not been sent to the bank (d) Interest on overdraft debited by the bank (e) Payment side of cash book has been under the cast 840 140 240 5000       1220 Less: (b) A cheque issued but not presented for payment (f) Interest on investment collected by the bank 700 340 6220     (1040) Balance as per cash book 5180

### 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

 Particulars Detail Amount Credit balance as per passbook Add: b. A cheque issued was entered in the cash column of the cashbook instead of the bank column and cashed by the bank. d. A bill receivable which was discounted with the bank dishonoured on the due date 40000  56000 50000      96000 Less: c. Cheque paid into bank but omitted to be recorded in the cash book e. Debit side of the cash book has been under the cast 16600  28000 146000     (44600) Balance as per cash book 101400

### 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

 Particulars Detail Amount Credit balance as per passbook Add: c. Cheques sent for deposit but not collected by the bank d. A cheque was issued to Sarita but omitted to be recorded in the cashbook f.  charges has not been entered in the cash book. 3120 2400960 72006480 Less: b. Cheques not presented for payment yet e. The debit card of the bank column cash book has been undercast 10000 6000 13680      (16000) Overdraft as per cash book 2320