Financial accounting I – Bank reconciliation statement
BBA | BBA-BI | BBA-TT | BCIS 1st
PU 2010 Spring Q. No. 2
Following information extracted from
- Balance shown on June 30,
bank statement is Rs. 12,623.80 and cash balance in the company’s bookis Rs. 7,928.00 as of June 30, 2010. Accountant has recorded a customer cheque of Rs. 3,821.60 into company’s book and sent to deposit in the company’s bank account but the bank has not credited the same amount until the end of June 30.- The company had issued three cheques of Rs. 568.40, Rs. 435.25, and Rs. 564.75 on June 29,
2010 but those cheques were presented for payment on July 2, 2010. - The deposit of Rs. 9,561.00 was recorded by the bank as Rs. 9,417.00.
- A note receivable of Rs. 8,000 and interest of Rs. 400 were collected by
bank but the amount has not been recorded in the company’s book. - A cheque of Rs. 980 from a customer has been returned by the bank as NSF (Not Sufficient Fund).
Bank service charge of Rs. 270 shown in the bank statement ofJune, 2010.- A cheque of Rs. 15,651.80 paid by the bank was recorded in the book by the accountant as Rs. 15,705.80.
Required:
a. Bank reconciliation statement as of June 30, 2010. [ 5 ]
b. Pass the necessary journal entries in the book of Capital Company. [ 5 ]
Solution:
a.
Capital Company
Bank reconciliation statement
As on June 30, 2010
| Particulars | Amount Rs. |
| Balance as per bank statement Add: Deposit in transit Add: Errors in recording Less: Outstanding cheques 1st cheque 2nd cheque 3rd cheque | 12,623.80 3,821.60 144 16,589.4 568.40 435.25 564.75 1,568.4 |
| Adjusted balance as per bank statement | Rs. 15,021 |
| Balance as per company’s book Add: Notes receivable Add: Interest on notes receivable Less: NSF cheque Less: Bank service charge Less: Errors in recording | 7,928 8,000 400 8,400 980 270 54 1,304 |
| Adjusted balance as per bank statement | Rs. 15,024 |
Note: On the above question there is not proper information. Such reason the adjusted amount is not equal by the amount Rs. 3 (15,024 – 15,021).
b.
Journal Entries
In the book of Capital Company
June 30
Cash a/c Dr. Rs. 8,400
Notes receivable a/c Rs. 8,000
Interest on notes receivable a/c Rs. 400
(To record the notes receivable and interest on notes receivable collected by the bank)
June 30
NSF cheque a/c Dr. Rs. 980
Bank service charge a/c Dr. 270
Creditors a/c Dr. Rs. 54
Cash a/c Rs. 1,304
(To record the NSF cheque, bank service charge, and creditors made by the bank)