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Financial accounting I – Bank Reconciliation statement
BBA | BBA-BI | BBA-TT | BCIS 1st
PU 2017 Fall Q. No. 15
The following information has been assembled for the purpose of preparing
a) The balance on the April 30 bank statement was Rs. 18,862; the cash account showed
b) A bank service charge of Rs. 25 appears on the bank statement, this charge has not been recorded in the books.
c) Cheques
d) A deposit of Rs. 887 appears on the bank statement. The company did not record such deposit in the book.
e) A deposit for Rs. 645 made late April does not appear in the bank statement.
f) A customer’s cheque for Rs. 140 was returned with 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.
Required:
i. Bank reconciliation statement of Arzoo Company for April 30, 2016.
ii. What is the cash balance that is shown in balance sheet at 30th April, 2016? [10]
Solution:
i.
Arzoo Company
Bank reconciliation statement
As on April 30, 2016
| Particulars | Amount Rs. |
| Balance as per bank statement Add: Deposit in transit Less: Outstanding check | 18,862 645 1,220 |
| 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 | 17,250 300 15 887 25 140 |
| 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 Arzoo Company’s April 30, 2016 on balance sheet.