Financial accounting I – Reconciliation statement
BBA | BBA-BI | BBA-TT | BCIS 1st
PU 2012 Spring Q. No. 2a
Following information extracted from the amount record of Everest Company as of December 31st, 2011:
i. Balance shown on 31st December 3’s bank statement is Rs. 6311.90 and the cash balance in the company’s book is Rs. 3962.50 as of December 3, 2011.
ii. Cheques under collection of Rs. 1910.80.
iii. Outstanding cheques, Rs. 784.20.
iv. The deposit of Rs. 1880.20 on December 11 was recorded by the bank as 1808.20.
v. A note receivable of Rs. 4,000 and interest of Rs. 200 were collected by
vi. A cheque of Rs. 517 from a customer has been returned by the bank as NSF (Not Sufficient Fund).
Vii. Bank service charge of Rs. 135 shown in the bank statement of December 2011.
Required: Bank Reconciliation Statement as on December 31, 2011.
As on December 31st, 2011
Bank reconciliation statement
|Balance as per bank statement|
Add: Deposit in transit
Add: Errors in recording
Less: Outstanding checks
|Adjusted cash balance as per bank statement||Rs. 7,510.5|
|Balance as per company’s book|
Add: Note receivable
Add: Interest on
Less: NSF cheque
Less: Bank service charge
|Adjusted cash balance as per company’s book||Rs. 7,510.5|
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Deposit in transit
When the amount is deposited in the bank but not collected or credited by bank such amount is called deposit in transit. As the amount is not deposited in the bank while preparing a reconciliation statement the respective amount should be added with given balance as per on