Bank Reconciliation Statement Questions And Answers Pdf Download Fix

[Gisberto Ries]

However, even today, the bank reconciliation process is highly manual in nature. The accountants are responsible for manually comparing the digital passbook and e-cash book to prepare bank reconciliation statements. Additionally, sometimes due to the delay in cash being processed in the bank, there is a difference between the passbook and the cash book. This might lead to multiple errors or inconsistencies in the bank reconciliation statement. Let us explore the various problems in bank reconciliation process and real-life examples of errors in bank reconciliation:

This is a predominant issue which leads to multiple errors in bank reconciliation statements. If there is a delay in checks getting deposited or being processed, the balance on the passbook would not match the cash book balance.

bank reconciliation statement questions and answers pdf download

Download ○○○ https://t.co/2gVaujqtYJ

As discussed earlier, bank reconciliation is a highly manual process. The accountants might enter incorrect transaction details or not add the bank fees or interest details mistakenly. These human errors might lead to problems in the bank reconciliation process and eventually the statement.

A cash reconciliation solution is a tool that helps businesses match their financial records with bank statements, ensuring accuracy and preventing errors. It saves time and reduces financial discrepancies. By automating the reconciliation process, it streamlines financial management.

Rim Zim Ltd. maintains a current account with the State Bank of India. On 31st March, 2017, the bank column of its cash book showed a debit balance of ₠1,54,300. However, the bank statement showed a different balance as on that date. The following were the reasons for the difference :

On 30th June, 2014, the bank column of Mohan Kapoor's Cash Book showed a debit balance of ₠12,000. On checking the Cash Book with bank statement you find that:-
1. Cheques paid into Bank ₠8,000, but out of these only cheques of ₠6,500 were cleared and credited by the Bankers upto 30th June.
2. Cheques of ₠9,200 were issued but out of these only cheques of ₠7,000 were presented for payment upto 30th June.
3. The receipt column of the Cash Book has been undercast by ₠200.
4. The Pass Book shows a credit of ₠330 as interest on investments collected by bankers and debit of ₠60 for bank charges.
5. On 29th June a Customer deposited ₠3,000 direct in the bank account but it was entered only in the Pass Book.
Prepare a Bank Reconciliation Statement.

On comparing the Cash Book with Pass Book of Naman it is found that on March 31, 2017, bank balance of ₠40,960 showed by the Cash Book differs from the bank balance with regard to the following:
(a) Bank charges ₠100 on March, 31 2017, are not entered in the Cash Book.
(b) On March 21, 2017, a debtor paid ₠2,000 into the company's bank in settlement of his account, but no entry was made in the Cash Book of the company in respect of this.
(c) Cheques totalling ₠12,980 were issued by the company and duly recorded in the Cash Book before March 31, 2017, but had not been presented at the bank for payment until after that date.
(d) A bill for ₠6,900 discounted with the bank is entered in the Cash Book without recording the discount charge of ₠800.
(e) ₠3,520 is entered in the Cash Book as paid into bank on March 31st 2017, but not credited by the bank until the following day.
(f) No entry has been made in the Cash Book to record the dishonour on March 15, 2017 of a cheque for ₠650 received from Bhanu.
Prepare a reconciliation Statement as on March 31, 2017.

On 31st January, 2017 the Pass Book of Shri M.L. Gupta shows a debit balance of ₠41,000. Prepare a bank reconciliation statement from the following particulars:-
1. Cheques amounting to ₠15,600 were drawn on 27th January, 2017. Out of which cheques for ₠11,000 were encashed up to 31-1-2017.
2. A wrong debit of ₠800 has been given by the bank in the Pass Book.
3. A cheque for ₠200 was credited in the Pass Book but was not recorded in the Cash Book.
4. Cheques amounting to ₠21,000 were deposited for collection. But out of these, cheques for ₠7,400 have been credited in the Pass Book on 5th February, 2017.
5. A cheque for ₠1,000 was returned dishonoured by the bank and was debited in the Pass Book only.
6. Interest on overdraft and bank charges amounting to ₠100 were not entered in the Cash Book.
7. A cheque of ₠500 debited in the Cash Book omitted to be banked.

On 31st March, 2019 the Cash Book of Gopal disclosed a balance of ₠12,580. On checking entries in the Cash Book with the bank statement, it was ascertained that:
(i) Cheques amounting to ₠18,000 were drawn on 25th March, of which cheques of ₠4,800 were cashed before 31st March.
(ii) Cheques for ₠18,000 were sent for collection out of which cheques for ₠8,200 were credit by bank after 31st March.
(iii) An amount of ₠5,000 paid directly into the merchant's account by a customer was not entered in the Cash Book.
(iv) On 31st March, cash was deposited into the bank ₠12,720 but the cashier debited the bank account with ₠12,270 by mistake.
(v) Dividend collected by bank on our behalf ₠570 does not appear in the Cash Book.
(vi) ₠300 is entered in the bank statement as bank charges. This was recorded as ₠200 in the cash book.
You are required:
(i) to prepare the Amended Cash Book, and
(ii) then prepare a Bank Reconciliation Statement.

The Cash Book of a merchant showed an overdraft balance of ₠15,700 on 31st December 2018. On comparing it with the Pass Book, the following differences were noted:
(i) Cheques amounting to ₠12,250 were deposited into the bank, out of which cheques for ₠8,200 have been credited in the Pass Book on 2nd January, 2019.
(ii) Cheques were issued amounting to ₠8,300 of which cheques for ₠2,000 have been cashed upto 31st Dec.
(iii) A cheque of ₠4,250 issued to a creditor, has been entered in the Cash Book as ₠4,520.
(iv) Bank charges of ₠180 on 30th November 2018 and ₠240 on 30th December 2018 have not been entered in the Cash Book.
(v) A B/R for ₠6,000 discounted with the bank is entered in the Cash Book without recording the discount charges of ₠300.
(vi) A cheque for ₠2,000 deposited into the bank appear in the Pass Book, but not recorded in the Cash Book.
(vii) A cheque for ₠3,700 deposited into the bank appear in the Pass Book, was recorded in the cash column of the Cash book.
You are required:
(i) to make appropriate adjustments in the cash book, bringing down the correct balance, and
(ii) to prepare a bank reconciliation statement with the adjusted balance.

On 31st March, 2019 the bank column of the Cash Book of Mr. Rajesh showed a debit balance of ₠5,200. On examining the Pass Book you find that:
(i) Cheques of ₠20,000 were sent to bank for collection; Out of these cheques of ₠4,000 and of ₠5,000 were credited respectively on 5th April and 6th April respectively and the remaining cheques were credited before 31st March.
(ii) A cheque for ₠7,500 received from a customer although entered in the bank column of the Cash Book, was omitted to be paid into the bank.
(iii) Cheques drawn for ₠25,000 were not presented for payment.
(iv) Credit side of the bank column of the Cash Book was overcast by ₠100.
(v) A B/P for ₠3,600 has been paid by the bank, but not yet recorded in the Cash Book.
(vi) No entry has been made in the Cash Book to record the dishonour on 28th March 2019, of a cheque for ₠5,400 received from a customer.
(vii) A cheque for ₠2,500 issued to a creditor was wrongly entered in the cash column of the Cash Book.
(viii) In the Cash Book, bank charges of ₠200 were entered twice while another bank charge of ₠500 was not recorded at all.
You are required to show the necessary corrections in the Cash Book and to prepare a statement reconciling the amended cash balance with that shown in bank Pass Book.

From the following particulars prepare a bank reconciliation statement of Govil as on 31st December, 2014.

Balance as per Pass Book on 31st December 2014 is ₠8,500. Cheques for ₠5,100 were issued during the month of December but of these cheques for ₠1,200 were presented in the month of January 2015 and one cheque for ₠200 was not presented for payment. Cheques and cash amounting to ₠4,800 were deposited in bank during December but credit was given for ₠3,800 only. A customer has deposited ₠800 into bank directly. The bank credited the merchant for ₠200 as interest and has debited him for ₠30 as bank charges for which there are no corresponding entries in Cash Book.

On Checking Ram's Cash Book with the bank statement of his overdraft current account for the month of November 2014, you find the following:
(a) Cash Book showed an overdraft of ₠16,200.
(b) The payment side of the Cash Book had been undercast by ₠500.
(c) A cheque for ₠13,600 drawn on his saving deposit account has been wrongly recorded as drawn on current account in the Cash Book.
(d) Cheques amounting to ₠18,800 drawn and entered in the Cash Book had not been presented.
(e) Cheques amounting to ₠7,500 sent to the bank for collection though entered in the Cash Book, had not been credited by the bank.
(f) Bank charge of ₠150 as per bank statement of account had not been taken in the Cash Book.
(g) Dividend of the amount of ₠420 had been paid direct to the bank and not entered in the Cash Book.
You are requested to arrive at the balance as it would appear in the bank statement as on 30th November 2014.

31c5a71286