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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
iv. XYZ. Co. rents s storage space in one of is
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
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
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)
April 30, 2015
Cash a/c Dr. Rs. 15
NSF check a/c Rs. 15
(To record the NSF check made by the bank)
iii. The adjusted balance Rs. 6,166.41 would be presented in the balance sheet at 30th April.