Financial accounting I – Reconciliation statement
BBA | BBA-BI | BBA-TT | BCIS 1st
PU 2016 Fall Q. No. 17
The following information has been assembled for the purpose of preparing the December 31, 2015 bank reconciliation statement of ABC Company.
a. The balance of the December 30 bank statement was Rs. 12,700, the cash account showed a Rs. 5,920 balance on the same date.
b. Cheques under collection on December 31, Rs. 1100.
c. Outstanding cheques, Rs. 6,800.
d. A customer’s cheques for Rs. 900 was returned with the bank statement marked “NSF”.
e. Bank service charged for Rs. 120.
f. Bill receivables collected by bank Rs. 2,000.
g. Interest on the preceding bill Rs. 100.
i. Bank reconciliation statement of ABC Company for December 31, 2015. 
ii. What is the cash balance that is shown in balance sheet? 
Bank Reconciliation Statement
As on December 31, 2015
|Balance as per bank statement|
Add: Deposit in transit
Less: Outstanding checks
|Adjusted balance as per bank statement||Rs. 7,000|
|Balance as per company’s book|
Add: Bills receivable
Add: Interest on bills receivable
Less: NSF check
Less: Bank service charge
|Adjusted balance as per company’s book||Rs. 7,000|
ii. The adjusted balance provided by the bank reconciliation is Rs. 7,000. Therefore Rs. 7,000 is the cash balance, which shown in the balance sheet of ABC Company.
Also, know about
Non-Sufficient Check (Not-Sufficient Fund)
The checks which are received from debtors and deposited in the bank by the company but returned by the bank as being less or non-sufficient fund (NSF) in debtors account are called NSF check. As these checks are already deducted by the bank while returning to the company. The company should also deduct from company’s book balance.