DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH

Name of the Participant : M. Ramakrishna

Designation : Head of Section
Branch : Commercial & Computer Practice
Institute : Govt. Polytechnic for women,
Bheemunipatnam
Year/Semester : I Year
Subject : Accountancy-I
Sub-code : CCP-102
Topic : Bank Reconciliation Statement
Sub Topic : Purpose & meaning of
Bank Reconciliation Statement
Duration : 50 Minutes
Teaching aids : Power Point Presentation

CCP102.79 1
 Objectives :

on completion of this period, you would be able to:

 Prepare Bank Reconciliation Statement

for the given problem

CCP102.79 2
Recap
In the last class, we discussed about
 Causes for disagreement of Cash Book and Pass
Book balances
 Analysing the causes
 Comparing the entries
 Adjusting entries in Bank Reconciliation Statement

CCP102.79 3
Steps to prepare bank reconciliation
statement

 Compare the entires recorded in cash book (or pass

book) with the relevant entries recorded in pass book (or
cash book)

 List out the reasons for the differences

 Prepare the Bank reconciliation statement by taking pass

book/cash book balance as a starting point to adjust the
differences which are affecting the balances

CCP102.79 4
 Proforma
Bank Reconciliation Statement as on…….
Particulars Amount Amount
Rs. Rs.
Balance as per Pass Book ---
Add: 1 --------- ---
2 --------- --- ---
---
---
Less:1 ---------- --- ---
2 ---------
---
Balance as per Cash Book
CCP102.79 5
Prepare a Bank Reconciliation
Statement as on 31-12-2007

 Pass book bank balance Rs.25,000/-

 Cheques deposited, but not collected before 31-12-07
Rs.3,200/-
 Cheques issued, not presented for payment Rs.4,000/-
 Interest on deposits credited Rs.80/-
 Dividends Rs.400/- credited in the pass book
 Bank charges shows in Pass Book Rs.20/-

CCP102.79 6
Cheques deposited, but not collected
before 31-12-2007, Rs.3,200/-

1. Cheques deposited
2. Trader debits the cash book before 31-12-07
3. Banker credits the pass book only after collection

CCP102.79 7
On comparison of balances as on
31-12-2007

 Cash book shows higher balance

 Pass book shows lower balance

CCP102.79 8
To reconcile the balances in
Bank Reconciliation Statement as per
pass book

 Add

CCP102.79 9
Bank Reconciliation Statement
as on 31-12-2007

Particulars Amount Amount

Rs. Rs.

Balance as per pass book as on 31-12-07 25,000

Add: 1.Cheques deposited but not 3,200

collected

Less:

CCP102.79 10
Cheques issued, but not presented for
payment

 Cheques issued
 Traders credit the cash book
 not presented for payment before 31-12-07
 Hence no entry in pass book

CCP102.79 11
On comparison of balances
as on 31-12-2007

 Cash Book shows lower balance

 Pass Book shows higher balance

CCP102.79 12
To reconcile the balances in
Bank Reconciliation Statement as per
Pass Book balance

 Less

CCP102.79 13
Bank Reconciliation Statement
as on 31-12-2007

Particulars Amount Amount

Balance as per pass book Rs Rs
as on 31-12-07 25,000
Add: 1.Cheques deposited 3,200
but not collected

Less: 1.Cheques issued 4,000

but not presented

CCP102.79 14
Interest on deposits Rs. 80/-

 Interest on deposits
 Banker credits the pass book
 No entry in Cash book before 31-12-07

CCP102.79 15
On comparison of balances
as on 31-12-2007

 Pass book shows higher balance

 Cash book shows lower balance

CCP102.79 16
To reconcile the balance in
Bank Reconciliation Statement as per
pass book balance

 Less

CCP102.79 17
Bank Reconciliation Statement as on
31-12-2007

Particulars Amount Amount

Balance as per pass book as on 31-12-07 Rs Rs
Add: 1.Cheques deposited but not collected 3,200 25,000

Less: 1.Cheques issued but not presented 4,000

2. Interest on deposits credited by 80

the bank

CCP102.79 18
Dividend Rs.400/-

1. Banker credits the Pass book

2. No entry in cash book before 31-12-07

CCP102.79 19
On comparison of balances
as on 31-12-2007

 Pass book balance shows higher balance

 Cash book balance shows lower balance

CCP102.79 20
To reconcile the balances in
Bank Reconciliation Statement as per
pass book balance

 Less

CCP102.79 21
 Bank Reconciliation Statement
as on 31-12-2007

Particulars Amount Amount

Rs. Rs.
Balance as per pass book as on 31-12-07 25,000
Add: 1.Cheques deposited but not collected 3,200

Less: 1.Cheques issued but not presented 4,000

2.Interest on deposits
80
3.Dividends credited by the banker
400
CCP102.79 22
Bank charges debited in pass book Rs.20/-

1. Banker debits the pass book

2. Trader credit the same only on receiving
communication
3. No communication before 31-12-07

CCP102.79 23
On comparison of balances as on
31-12-2007

 Cash book shows higher balance

 Pass book balance lower balance

CCP102.79 24
To reconcile the balances in
Bank Reconciliation Statement as per
pass book

 Add

CCP102.79 25
 Bank Reconciliation Statement
as on 31-12-2007

Particulars Amount Amount

Rs. Rs.
Balance as per pass book as on 31-12-07 25,000
Add: 1.Cheques deposited but not collected 3,200
2. Bank charges debited in pass book 20
Less: 1.Cheques issued but not presented 4,000
2.Interest on deposits
80
3.Dividends credited by the banker
400
CCP102.79 26
  Solution:
• Bank Reconciliation Statement as on 31-12-2007

Particulars Amount Amount

Rs. Rs.
Balance as per pass book as on 31-12-07
25,000
Add: 1. Cheques deposited but not collected 3,200
2. Bank charges 20 3,220
28,220
Less: 1.Cheques issues but not presented 4,000
2.Interest on deposits 80
3.Dividends credited by the banker 400
4,480

Bank Balance as per Cash bookCCP102.79

as on 31-12-07 23,740
27
Summary

We discussed about
 Preparation of Bank Reconciliation Statement
 Understanding the causes for Disagreement
between Cash Book Balance and Pass Book
Balance
 analysed the causes
 comparison of balances
 Adjusting the entries in BRS
CCP102.79 28
Assignment
Prepare Bank Reconciliation Statement from the
following particulars.
b) Balance as per Pass Book Rs.9,436.
c) Cheques deposited but not collected Rs.1,000.
d) Cheques issued but not presented Rs.1,200.
e) A customer deposited Rs.1,000 directly into our bank
account and not informed us.
f) Bank charges not recorded in cash book Rs.12.
(Balance as per Cash Book: Rs.10,648)

CCP102.79 29