Financial accounting I – Bank reconciliation statement
BBA | BBA-BI | BBA-TT | BCIS 1st
PU 2011 Fall Q. No. 6
The following information has been assembled for the purpose of preparing the Apr.30, 2010, bank reconciliation statement of XYZ Company.
a. The balance on the April 30 bank statement was Rs. 18,862; the cash account showed a Rs. 17,250 balance on the same date.
b. A bank services charge of Rs. 25 appears on the bank statement; this charge has not been recorded in the books.
c. Cheques written by XYZ Company which have not yet cleared the bank total Rs. 1,220.
d. A deposit of Rs. 887 appears on the bank statement. The company did not make in book such a deposit.
e. A deposit for Rs. 645 made late on April 30 does not appear on the Bank Statement.
f. A customer’s cheque for Rs. 140 was returned with the bank statement marked “NSF”.
g. The bank collected Rs. 315 of a customer’s note which includes, Rs. 15 as interest and face value of Rs. 300.
i. The April 30 bank reconciliation statement for XYZ Company. [ 7 ]
ii. How much cash balance to be reported on XYZ Company’s April 30, balance sheet? 
iii. Pass the journal entries to adjust the accounts of April 30. [ 6 ]
Bank Reconciliation Statement
As on April 30, 2010
|Balance as per bank statement|
Add: Deposit in transit
Less: Outstanding check
|Adjusted balance as per bank statement||Rs. 18,287|
|Balance as per company’s book|
Add: Note receivable
Add: Interest on the note receivable
Add: Directly deposited by bank
Less: Bank service charge
Less: NSF check
|Adjusted balance as per company’s book||Rs. 18,287|
ii. Since the adjusted balance provided by the bank reconciliation statement is Rs. 18,287. Hence, Rs. 18,827 should be reported on XYZ Company’s April 30, on balance sheet.
In the book of XYZ Company
Cash a/c Dr. Rs. 1,202
Note receivable a/c Rs. 300
Interest on note receivable a/c Rs. 15
Deposited by bank a/c Rs. 887
(To record the note receivable, interest on the note receivable, and directly deposited by the bank)
Bank service charges a/c Dr. Rs. 25
NSF check a/c, Dr. Rs. 140
Cash a/c Rs. 165
(To record the bank service charge and NSF check expenses made by the bank)