Bank Reconciliation Statement Treatment for Rs 480 and Rs 840 Entries

Bank reconciliation statement is a statement that reconciles the balance as per the company's cash book with the balance as per the bank statement. It helps in identifying any discrepancies or differences between the two and ensures the accuracy of the financial records.

In this scenario, there are two debit entries in the company's pass book, one for Rs 480 and the other for Rs 840. However, it is mentioned that the Rs 480 entry has been reversed by the bank before 31.12.2023, and the Rs 840 entry relates to the subsidiary of the company.

1. Reversed Debit Entry of Rs 480:
The bank has reversed the debit entry of Rs 480, which means that the amount is no longer debited from the company's account. This reversal could be due to various reasons such as an error in recording the transaction, a duplicate entry, or any other bank-related issue. To treat this in the bank reconciliation statement, we need to make the necessary adjustments.

- Add the reversed amount of Rs 480 to the balance as per the company's cash book. This is because the company's cash book would still reflect the original debit entry, and the amount needs to be included to reconcile the balances.

2. Subsidiary Entry of Rs 840:
The debit entry of Rs 840 relates to the subsidiary of the company. This means that the amount has been debited by the bank on behalf of the subsidiary, and it does not directly affect the company's cash book. However, it is important to consider this entry while preparing the bank reconciliation statement.

- Deduct the subsidiary entry of Rs 840 from the balance as per the bank statement. As this entry is not reflected in the company's cash book, it should be removed from the bank statement balance to reconcile the balances accurately.

By considering the above adjustments, the bank reconciliation statement can be prepared effectively. The adjustments for the reversed debit entry of Rs 480 and the subsidiary entry of Rs 840 will ensure that the balances as per the company's cash book and the bank statement are reconciled accurately.