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Prepare a bank reconciliation statement. 1Bank overdraft as per passbook 22000 2 Chaques deposited into bank but no entry was made in cash 3700 3 Cheque received neither recorded in cash book nor send to bank 7500 4 Insurance premium paid directly by bank as per instructions 700 5 Bank charges entered twice in cash book 200 6 Cheque received from customer debited in the bank column of cash book but omitted to bank 5000 Please answer this!?
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Prepare a bank reconciliation statement. 1Bank overdraft as per passbo...
Bank Reconciliation Statement


Step 1: Compare Bank Statement with Cash Book


  • Bank overdraft as per passbook: 22,000

  • Cheques deposited into bank but no entry was made in cash: 3,700

  • Cheque received neither recorded in cash book nor sent to bank: 7,500

  • Insurance premium paid directly by bank as per instructions: 700

  • Bank charges entered twice in cash book: 200

  • Cheque received from customer debited in the bank column of cash book but omitted to bank: 5,000



Step 2: Adjust the Cash Book


  • Add the cheques deposited but not recorded in cash: 3,700

  • Deduct the cheque received but not recorded in cash or sent to bank: 7,500

  • Deduct the insurance premium paid directly by bank: 700

  • Deduct the bank charges entered twice in cash book: 200

  • Add the cheque received from customer debited in the bank column of cash book but omitted to bank: 5,000

  • Total adjustments: - 200



Step 3: Prepare the Bank Reconciliation Statement


  • Bank overdraft as per passbook: 22,000

  • Add: Unrecorded deposits: 3,700

  • Deduct: Unpresented cheques: 7,500

  • Deduct: Insurance premium paid directly by bank: 700

  • Deduct: Bank charges entered twice in cash book: 200

  • Add: Omitted cheque received from customer: 5,000

  • Adjusted bank balance: 22,300



Step 4: Explain the Bank Reconciliation Statement

The bank reconciliation statement is a document that compares the bank statement with the cash book to identify any differences. In this case, the bank statement shows an overdraft of 22,000 while the cash book shows a different balance due to various adjustments.


The adjustments made to the cash book include adding the cheques deposited but not recorded in cash, deducting the cheque received but not recorded in cash or sent to the bank, deducting the insurance premium paid directly by the bank, deducting the bank charges entered twice in the cash book, and adding the omitted cheque received from the customer.


After making these adjustments, the adjusted bank balance is 22,300 which is higher than the bank overdraft as per the passbook. This difference can be explained by the timing of certain transactions or errors made in recording them. The bank reconciliation statement helps to ensure that the cash book and bank statement are accurate and up to date.
Community Answer
Prepare a bank reconciliation statement. 1Bank overdraft as per passbo...
+side=7500+700+5000=13200
-side=22000+3700+200=25900
credit balance as per Cash book =25900-13200=12700
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Study the following hypothetical transactional detail of Mr. Keshav and answer the given questions:On 31st March, 2019 the bank column of the Cash Book of Mr. Keshav disclosed an overdraft balance of ₹8,300. On examining the cash book and bank statement you find that:• Cheques were deposited into the bank for ₹16,000 but of these cheques for ₹4,600 were cleared and credited in April 2015.• Cheques were issued for ₹7,500 out of which cheques for ₹6,000 had been presented for payment in March 2019.• In March Mr. Keshav had discounted with a bank a bill of exchange for ₹10,000 and had entered this amount in the Cash Book, but the proceeds credited as shown by the Passbook, amounted to ₹9,600.• No entry is made in the Cash Book of an amount of ₹6,100 directly deposited by a customer in the bank accounts.• Bank Column of the payment side of the Cash Book was undercast by ₹1,000.• Payment of Insurance premium of ₹2,000 and receipt of insurance claim of ₹8,000 appear in the Passbook but not entered in the Cash Book.• A cheque for ₹3,500 issued to Mr. Kapil was omitted to be recorded in the Cash Book.• A cheque for ₹2,800 issued to Mr. Darshan was entered in the cash column of the Cash Book.The amount not entered in the cash book as it was directly deposited in the bank by a customer will be recorded as a ________ item in the bank reconciliation statement.

Study the following hypothetical transactional detail of Mr. Keshav and answer the given questions:On 31st March, 2019 the bank column of the Cash Book of Mr. Keshav disclosed an overdraft balance of ₹8,300. On examining the cash book and bank statement you find that:• Cheques were deposited into the bank for ₹16,000 but of these cheques for ₹4,600 were cleared and credited in April 2015.• Cheques were issued for ₹7,500 out of which cheques for ₹6,000 had been presented for payment in March 2019.• In March Mr. Keshav had discounted with a bank a bill of exchange for ₹10,000 and had entered this amount in the Cash Book, but the proceeds credited as shown by the Passbook, amounted to ₹9,600.• No entry is made in the Cash Book of an amount of ₹6,100 directly deposited by a customer in the bank accounts.• Bank Column of the payment side of the Cash Book was undercast by ₹1,000.• Payment of Insurance premium of ₹2,000 and receipt of insurance claim of ₹8,000 appear in the Passbook but not entered in the Cash Book.• A cheque for ₹3,500 issued to Mr. Kapil was omitted to be recorded in the Cash Book.• A cheque for ₹2,800 issued to Mr. Darshan was entered in the cash column of the Cash Book.Which of the following amount will be shown in the plus item column of the bank reconciliation statement with regard to the cheques that were issued but not presented to the bank?

Study the following hypothetical transactional detail of Mr. Keshav and answer the given questions:On 31st March, 2019 the bank column of the Cash Book of Mr. Keshav disclosed an overdraft balance of ₹8,300. On examining the cash book and bank statement you find that:• Cheques were deposited into the bank for ₹16,000 but of these cheques for ₹4,600 were cleared and credited in April 2015.• Cheques were issued for ₹7,500 out of which cheques for ₹6,000 had been presented for payment in March 2019.• In March Mr. Keshav had discounted with a bank a bill of exchange for ₹10,000 and had entered this amount in the Cash Book, but the proceeds credited as shown by the Passbook, amounted to ₹9,600.• No entry is made in the Cash Book of an amount of ₹6,100 directly deposited by a customer in the bank accounts.• Bank Column of the payment side of the Cash Book was undercast by ₹1,000.• Payment of Insurance premium of ₹2,000 and receipt of insurance claim of ₹8,000 appear in the Passbook but not entered in the Cash Book.• A cheque for ₹3,500 issued to Mr. Kapil was omitted to be recorded in the Cash Book.• A cheque for ₹2,800 issued to Mr. Darshan was entered in the cash column of the Cash Book.The amount of cheque not credited until April 2015 will be recorded as a _______ item in the bank reconciliation statement.

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Prepare a bank reconciliation statement. 1Bank overdraft as per passbook 22000 2 Chaques deposited into bank but no entry was made in cash 3700 3 Cheque received neither recorded in cash book nor send to bank 7500 4 Insurance premium paid directly by bank as per instructions 700 5 Bank charges entered twice in cash book 200 6 Cheque received from customer debited in the bank column of cash book but omitted to bank 5000 Please answer this!?
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Prepare a bank reconciliation statement. 1Bank overdraft as per passbook 22000 2 Chaques deposited into bank but no entry was made in cash 3700 3 Cheque received neither recorded in cash book nor send to bank 7500 4 Insurance premium paid directly by bank as per instructions 700 5 Bank charges entered twice in cash book 200 6 Cheque received from customer debited in the bank column of cash book but omitted to bank 5000 Please answer this!? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Prepare a bank reconciliation statement. 1Bank overdraft as per passbook 22000 2 Chaques deposited into bank but no entry was made in cash 3700 3 Cheque received neither recorded in cash book nor send to bank 7500 4 Insurance premium paid directly by bank as per instructions 700 5 Bank charges entered twice in cash book 200 6 Cheque received from customer debited in the bank column of cash book but omitted to bank 5000 Please answer this!? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Prepare a bank reconciliation statement. 1Bank overdraft as per passbook 22000 2 Chaques deposited into bank but no entry was made in cash 3700 3 Cheque received neither recorded in cash book nor send to bank 7500 4 Insurance premium paid directly by bank as per instructions 700 5 Bank charges entered twice in cash book 200 6 Cheque received from customer debited in the bank column of cash book but omitted to bank 5000 Please answer this!?.
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