SOME PRACTICE QUESTIONS FOR BANK RECONCILATION STATEMENTS

Q1 On 1st January, 2014, Naresh had an overdraft of Rs. 40,000 as shown by his cash Book in the bank column. Cheques
amounting to Rs. 10,000 had been deposited by him but were not collected by the bank by 1st January, 2014. He issued cheques of
Rs.7,000 which were not presented to the bank for payment up to that day. There was also a debit in his Pass Book of Rs. 600 for
interest and Rs. 500 for bank charges. Prepare Bank Reconciliation Statement.

Q2 On 31st March, 2014, Cash Book of B. Babu showed an overdraft of Rs. 18,000 with the Bank of India. This balance did not
agree with the balance as shown by the Bank Pass Book. You find that Babu had paid into the bank on 26th March, four cheques for
Rs. 10,000, Rs. 12,000,Rs. 6,000 and Rs. 8,000. Of these the cheque for Rs. 6,000 was credited by the bank in April, 2014. Babu
had issued on 24th March three cheques for Rs. 1,500, Rs. 12,000 and Rs. 7,000. The first two cheques were presented to the bank
for payment in March, 2014 and the third cheque in April, 2014. You also find that on 31st March, 2014 the bank had debited Babu’s
Account with Rs. 500 for interest and Rs. 20 charges, but Babu had not recorded these amounts in his books. Prepare Bank
Reconciliation Statement as on 31st March, 2014 and ascertain the balance as per Bank Pass Book.

Q3 Prepare Bank Reconciliation Statement from the following: On 31st March, 2014, a merchant’s Cash Book showed a credit
bank balance of Rs. 10,500 but due to the following reasons the Pass Book showed a difference:

i) A cheque of Rs. 540 issued to Mohan has not been presented for payment.

ii) A post – dated cheques for Rs. 100 has been debited in the bank column of the Cash Book but under no circumstances was it
possible to present it.

iii)Four cheques of Rs. 1,200 sent to the bank have not been collected so far. A cheque of Rs. 400 deposited in the bank has been
dishonoured.

iv) As per instructions, the bank paid Rs. 50 as Fire Insurance premium but the entry has not been made in the Cash Book.

v) There was a debit in the Pass Book of Rs. 15 in respect of bank charges and a credit of Rs. 25 for interest on Current Account
but no record exists in the Cash Book.

Q4 Tiwari and Sons find that the bank balance shown by their Cash Book on 31st December, 2012 is Rs. 40,500 (credit) but
the Pass Book shows a difference due to the following reasons:

i) A cheque for Rs. 5,000 drawn in favour of Manohar has not yet been presented for payment

ii) A post – dated cheque for Rs. 900 has been debited in the bank column of the Cash Book but it could not have been presented
in any case.

iii)Cheques totaling Rs. 10,200 deposited with the bank have not yet been collected and a cheque for Rs. 4,000 has been dishonoured.

iv) A bill for Rs. 10,000 was retired by the bank under a rebate of Rs. 150 but the full amount of the bill was credited in the bank
column of the Cash Book. Prepare Bank Reconciliation Statement and find out the balance as per the Pass Book.

Q5 Prepare Bank Reconciliation Statement from the following particulars as on 31st December, 2012, when Pass Book shows a
debit balance of Rs. 2,500:

i) Cheque issued for Rs. 5,000 but upto 31st, December, 2012 only Rs. 3,000 could be cleared.

ii) Cheques issued for Rs. 1,000 but omitted to be recorded in the Cash Book.

iii)Cheques deposited for Rs. 5,500 but cheques for Rs. 500 were collected on 4th January, 2013.

iv) A discounted Bill of Exchange dishonoured Rs. 1,000.

v) A cheque of rs. 500 debited in Cash Book but omitted to be banked.

vi) Interest allowed by bank Rs. 200 but no entry was passed in the Cash Book.

Q6 On 31st March, 2014, Bank Pass Book of Naresh & Co. showed an overdraft of Rs. 10,700. From the following particulars,
Prepare Bank Reconciliation Statement:

i) Cheques issued before 31st March, 2014 but presented for payment after that date amounted to Rs. 900.
ii) Cheques paid into bank but not collected and credited until 31st March, 2014 amounted to Rs. 2,200.

iii)Interest on overdraft amounting to Rs. 1,200 did not appear in the Cash Book.

iv) Rs. 5,000 being interest on investments collected by the bank and credited in the Pass Book were not shown in the Cash Book.

v) Bank charges of Rs. 50 were not entered in the Cash Book.

vi) Rs. 800 in respect of dishonoured cheque were entered in the Pass Book but not in the Cash Book.

Q7 From the following information supplied by Mr. D.H., Prepare Bank Reconciliation Statement as on 31st March, 2014:

i) Bank overdraft as per Pass Book 33,000

ii) Cheques issued but not presented for payment 17,500

iii)Cheques deposited but not collected 21,000

iv) Cheques recorded in the Cash Book but not sent to the bank for collection 4,000

v) Payment received from customers directly by the bank. 7,000

vi) Bank charges debited in the Pass Book. 40

vii) Premium of Life Insurance Policy of Mr. D.H. paid by the bank on standing instructions. 360

viii) A bill for Rs. 6,000 dishonoured on 30th March, 2014 and bank paid Noting Charges. This bill was discounted

on 30th January, 2014.

Q8 From the following information supplied by Sanjay, prepare his Bank Reconciliation Statement as on 31st December,
2012:

i) Bank overdraft as per Pass Book. 16,500

ii) Cheques issued but not presented for payment. 8,750

iii)Cheques deposited with the Bank but not collected. 10,500

iv) Cheques recorded in the Cash Book but not sent to the bank for collection 2,000

v) Payments received from customers directly by the bank. 3,500

vi) Bank charges debited in the Pass Book. 200

vii) Premium on life policy of Sanjay paid by the bank on standing advice. 1,980

viii) A bill for Rs. 3,000 (discounted with the bank in November) dishonoured on 31st December,

2012 and noting charges paid by the bank. 100

Q9 Prepare Bank Reconciliation Statement as on 30th June,2015 for Jyoti Sales Private Limited the

information given below:

i. Bank overdraft as per Cash Book on 30th June,2015 Rs.1,10,450

ii. Cheques issued on 20th June,2015 but not yet presented Rs.15,000

iii. Cheque deposited but not yet credited by the bank Rs. 22,750

iv. Bills for collection not advised by the bank but credited to the account Rs.47,200

v. Interest debited by the bank on 27th June,2015 but no advice received Rs.12,115

vi. Subsidy received from the authorities by the bank on our behalf, credited to the account Rs.22,000

vii. Amount wrongly debited by the bank Rs. 2,400

viii. Amount wrongly credited by the bank Rs.5,000