Financial accounting I – Bank reconciliation statement
BBA | BBA-BI | BBA-TT | BCIS 1st
PU 2011 Spring Q. No. 2b
Following information extracted from the accounting record of Coral Betting company as of June 30, 2011. [10]
i. Balance as per bank statement as on June 30, was Rs. 18,862 and the cash balance in the company’s book was Rs. 17,250.
ii.Bank service charge of Rs. 25 has not been recorded in the book.
iii. Cheque written by Coral Betting Company which has not yet been cleared at the bank total Rs. 1,220.
iv. A deposit of Rs. 887 reveals on the bank statement but company has not recorded it in the book.
v. A deposit for Rs. 645 made late on June 30 does not appear on the bank statement.
vi. A customer’s cheque for Rs. 140 was marked NSF cheque.
Vii. The bank collected Rs. 300 of a customer’s note along with Rs. 15 as interest.
Required:
i. Reconciliation statement as on June 30, 2011.
ii. How much cash balance should be reported on Coral Betting Company’s June 30, balance sheet?
Solution:
i.
Coral Betting Company
Bank Reconciliation statement
As on June 30, 2011
| Particulars | Amount Rs. |
| Balance as per bank statement Add: Deposit in transit Less: Outstanding check | 18,862 645 1,220 |
| 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 | 17,250 300 15 887 25 140 |
| Adjusted balance as per company’s book | Rs. 18,287 |
ii. The adjusted balance provided by the reconciliation statement is Rs, 18,287. Which has been adjusted with both bank and company’s statement. Hence, Rs. 18,287 should be reported on Coral Betting Company’s June 30 on balance sheet.