Bank reconciliation statement | financial accounting I | PU 2016 Spring solution

Financial accounting I – Bank Reconciliation statement

BBA | BBA-BI | BBA-TT | BCIS 1st

PU 2016 Spring Q. No. 14

The following information has been assembled for the purpose of preparing the April 30, 2015, Bank Reconciliation Statement of XYZ Co.

i. The balance in cash as reported as April 30, 2015, bank statement is Rs. 5,654.98 and as company’s book rivals same as RS. 4,165.66.

ii. XYZ Co. made a deposit of Rs. 865 on April 30 that is credited by bank on 3rd f May.

iii. The cheques issued on April 15 worth Rs. 236.77 and Rs. 116.80 were presented for payment only in May 5th 2015.

iv. XYZ. Co. rents s storage space in one of is warehouse, and the tenant pays its monthly rent directly to the bank for deposit in XYZ Co’s account. The bank statement indicates that a deposit of Rs. 1,500 was made during the month of April.

v. Interest earned on the checking account and added to XYZ co.’s account during April is 11.57.

vi. A customer cheque for Rs. 15 was returned with the bank statement marked “NSF”.

vii. Comparison of cheque counterfoils with the bank statement showed that cheque of Rs. 56 paid to supplier was recorded by the company’s accountant as a cheque of Rs. 560.

Required: Prepare a bank reconciliation statement for XYZ co. as of 30th April. And also pass necessary journal entries. How much cash would be presented in balance sheet at 30th April? [10]

Solution:

i.

XYZ Company

Bank Reconciliation Statement

As on April 30, 2015

Particulars	Amount Rs.
Balance as per bank statement Add: Deposit in transit Less: Outstanding checks (236.77 + 116.80)	5,654.98 865 353.57
Adjusted balance as per bank statement	Rs. 6,166.41
Balance as per company’s book Add: Rent collected by the bank Add: Interest collected by the bank Add: Errors in recording Less: NSF check	4,165.66 1,500 11.75 504 15
Adjusted balance as per company’s book	Rs. 6,166.41

ii.

Journal entries

In the book of XYZ Company

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April 30, 2015

Cash a/c Dr. Rs. 2,015.75

Rent revenue a/c         Rs. 1,500

Interest revenue a/c    Rs. 11.75

Account receivable a/c Rs. 504

(To record the rent revenue, interest revenue collected by bank, and account receivable made due the mistaken in company’s book) 

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April 30, 2015

Cash a/c Dr. Rs. 15

NSF check a/c Rs. 15

(To record the NSF check made by the bank)

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iii. The adjusted balance Rs. 6,166.41 would be presented in the balance sheet at 30th April.

See, also the related solution

PU 2016 Fall Q. No. 17, bank reconciliation statement, NSF check

PU 2015 Spring Q. No. 16, bank reconciliation statement, NSF check