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.
Required:
i. Bank reconciliation statement of ABC Company for December 31, 2015. [8]
ii. What is the cash balance that is shown in balance sheet? [2]
Solution:
i.
ABC Company
Bank Reconciliation Statement
As on December 31, 2015
| Particulars | Amount Rs. |
| Balance as per bank statement Add: Deposit in transit Less: Outstanding checks | 12,700 1,100 6,800 |
| 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 | 5,920 2,000 100 900 120 |
| 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.
PU 2015 Spring Q. No. 16, bank reconciliation statement, NSF check
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.