Financial accounting I – Reconciliation statement
BBA | BBA-BI | BBA-TT | BCIS 1st
PU 2014 Spring Q. No. 16
The following information has been assembled for the purpose of preparing the April 30, 2014, 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 service charge of Rs. 25 has not been recorded in company’s book of accounts.
c. Cheques written by XYZ Company which have not been cleared at the bank total of Rs. 1,220.
d. A deposit of Rs. 887 appears on the bank statement. The company did not record in its book such a deposit.
e. A deposit for 645 made late on April 30 does not appears in 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.
ii. How much balance of cash shall be reported on the balance sheet? 
iii. Pass the necessary entries for the company’s books. 
Bank Reconciliation Statement
As on April 30, 2014
|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)
See, also the related solution
PU 2014 Fall Q. No. 15, BRS (deposit in transit)
Also, know about
Deposit in transit
When an 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 bank reconciliation statement the respective amount should be added with given balance as per bank statement.