Ch-3 Bank Reconciliation Statement Pass Book: -     Bank pass book (Bank Statement) is copy of customer’s A/c in the boo...
   Bank Reconciliation Statement    1. Need : -           In case of disagreement in the balance of the Cash Book and the...
C   Less:Transactions having the effect of lower balance in               Pass Book.         (a)    Cheques received and r...
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CA-CPT Accounts - Bank Reconcilation Statement - Revision Sheet

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CA-CPT Accounts - Bank Reconcilation Statement - Revision Sheet

  1. 1. Ch-3 Bank Reconciliation Statement Pass Book: -  Bank pass book (Bank Statement) is copy of customer’s A/c in the books of bank.  Bank usually supplies this statement periodically or on demand.  Now a day’s bank provides NET Banking & Mobile Banking.  Format of Pass book. Date Particular Debit Credit Dr or Cr. Balance Initials Withdrawals Deposits Methods of Recording Bank Transactions Journal Entries 1. Recording deposits Bank A/c Dr To Customer’s A/c 2. Recording Withdrawals Customer A/c Dr To Bank A/c Note: - Debit Side of Cash Bank = Credit side of Pass Book Credit Side of Pass Book = Debit side of Cash Book Debit Balance of Cash Book = Credit Balance of Pass Book Credit Balance of cash Book (Overdraft) = Debit Bank Balance of Pass Book (Overdraft) Timings of Recording Banking Transactions Timing of recording Banking transaction in cash book and pass book need not necessary be same. This may differ due to various reasons: The reasons for above are summarised as follows:- Transactions Timings of Recording Timing of Recording in In Cash Book Pass Book 1. Cash Deposits When Cash is deposited When Cash is deposited 2. Cash withdrawn When Cash is withdrawn When Cash is withdrawn 3. Cheque issued When Cheque is issued When Cheque is presented for payment 4 Cheque deposited When Cheque is deposited When Cheque is collected 5 Bank Charges When information for Bank When charges are levied is received 6 Interest charged by Bank When information from When interest is charged Bank is received by the Bank 7 Interest allowed by Bank When information from When interest is allowed by Bank is received Bank 8 Direct payment on Behalf When information from When payment is made by Bank is received of customers he the Bank 9 Direct Collection on behalf When information from When amount is collected of customer Bank is received by the Bank 10 Dishonour of Cheque/ Bills When information from When cheque/B/R/ is receivable Bank is received dishonouredVXplain to score more – post your doubts at vxplain@gmail.com /www.vxplain.com Page 1
  2. 2.  Bank Reconciliation Statement 1. Need : - In case of disagreement in the balance of the Cash Book and the Pass Book, the need to prepare Bank Reconciliation Statement arises. 2. Meaning :- Bank reconciliation statement reconciles bank Balance as per Cash Book with Balance as per Pass Book by showing all causes of different between the two. 3. Purpose:- After coming to know the causes & to take necessary follow – up action. Distinction between Bank statement and Bank Reconciliation Statement Basis of Distinction Bank Statement/ Pass Book Bank Reconciliation Statement 1 Who prepares It is prepared by the Bank It is prepared by the bank customeri.e. account holder 2 Object It is prepare to inform the It is prepared to reconcile the customer bout all transactions bank balance as per cash book which have taken place during with the bank balance shown by the period covered by the the bank statement. statement 3 Timing when It is prepared for a particular It is prepared at a particular prepared period date. 4 Necessity It is compulsory for the bank to It is not compulsory. prepare it. 5 Contents It shows – It shows – (a) Date of Transactions (a) Causes of disagreement & (b) Particulars of Transactions (b) Amount thereof (c) Withdrawals (d) Deposits (e) Balances 6 Starting Amount It starts with the balance as per It may start with bank balance as customer’s account in bank per Cash Book or Bank ledger Statement. 7 Final Result It shows the balance in It may show the bank balance as customer’s account as per bank per cash book or Bank Statement ledger at the end of the period at the end of period Causes for disagreement between Pass Book & Cash Book 1. Timing different of recording banking transaction 2. Errors in Cash Book committed by the account holder 3. Errors in Pass Book committed by the Bank Particulars Plus Items Minus Items Rs. Rs. A Bank balance as per Cash Book XXX B Add:Transaction having the effect of higher balance in Pass Book: XXX (a) Cheque deposited into the bank but not recorded in cash book XXX (b) Cheques issued but not yet presented for payment (c) Interest allowed in Pass Book only XXX (d) Bill Receivable directly collected by bank XXX (e) Direct payment by a customer into bank but not recorded in cash book XXX (f) ‘Cheques issued return on technical grounds XXX (g) A wrong credit given by bank in Pass Book. XXXVXplain to score more – post your doubts at vxplain@gmail.com /www.vxplain.com Page 2
  3. 3. C Less:Transactions having the effect of lower balance in Pass Book. (a) Cheques received and recorded in Bank Column but not yet sent to bank for collection XXX (b) Cheques deposited but not yet collected by bank (c) Bank charges interest on overdraft debited in Pass XXX Book only XXX (d) Insurance Premium paid directly by bank understanding advice XXX (e) Cheques deposited for collection, returned dishonoured and record in Pass Book only XXX (f) Discounted bill dishonoured but not recorded in Cash Book XXX (g) A wrong debit given by bank in Pass Book XXX XXX D Balance as per Pass Book XXX Particulars Plus Minus Items Items Rs. Rs. A Bank balance as per Pass Book XXX B LESS: Transaction having the effect of lower balance in Cash book: (a) Cheque deposited into the bank but not recorded in cash book XXX (b) Cheques issued but not yet presented for payment XXX (c) Interest allowed in Pass Book only XXX (d) Bill Receivable directly collected by bank XXX (e) Direct payment by a customer into bank but not recorded in cash book XXX (f) ‘Cheques issued return on technical grounds XXX (g) A wrong credit given by bank in Pass Book. XXX C ADD: Transactions having the effect of higher balance Cash Book. (a) Cheques received and recorded in Bank Column but not yet sent to bank for collection XXX (b) Cheques deposited but not yet collected by bank XXX (c) Bank charges interest on overdraft debited in Pass Book only XXX (d) Insurance Premium paid directly by bank understanding advice XXX (e) Cheques deposited for collection, returned dishonoured and record in Pass Book only XXX (f) Discounted bill dishonoured but not recorded in Cash Book XXX (g) A wrong debit given by bank in Pass Book XXX XXX D Balance as per Cash Book XXXVXplain to score more – post your doubts at vxplain@gmail.com /www.vxplain.com Page 3

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