Ch-3 BRS

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SHEKHAWAT ACADEMY CA FOUNDATION l ACCOUNTS

Chapter - 4: Bank Reconciliation Statement (BRS)


Marks Distribution in past papers
M-18 N-18 M-19 N-19
Marks 10M 10M 10M 10M
Ques. No. 6(a) 4(b) 2(a) 2(a)

Bank Reconciliation Statement


Q1. The following are the Cash Book (bank column) and Pass Book of Jain for the months of March, 2017 and
April, 2017:
Cash Book (Bank Column only)
Date Particulars Amount Date Particulars Amount
01/3/2017 To Balance b/d 60,000 03/3/2017 By Cash A/c 2,00,000
06/3/2017 To Sales A/c 3,00,000 07/3/2017 By Modi 60,000
10/3/2017 To Ram 65,000 12/3/2017 By Patil 30,000
18/3/2017 To Singhal 2,70,000 18/3/2017 By Suresh 40,000
25/3/2017 To Goyal 33,000 24/3/2017 By Ramesh 1,50,000
31/3/2017 To Patel 65,000 30/3/2017 By Balance c/d 3,13,000
7,93,000 7,93,000
Pass Book

Date Particulars Debit Credit Dr. or Cr. Balance


1/4/2017 By Balance b/d 3,65,000 Cr. 3,65,000
3/4/2017 By Goyal 33,000 Cr. 3,98,000
5/4/2017 By Patel 65,000 Cr. 4,63,000
7/4/2017 To Naresh 2,80,000 Cr. 1,83,000
12/4/2017 To Ramesh 1,50,000 Cr. 33,000
15/4/2017 To Bank charges 200 Cr. 32,800
20/4/2017 By Usha 17,000 Cr. 49,800
25/4/2017 By Kalpana 38,000 Cr. 87,800
30/4/2017 To Sunil 6,200 Cr. 81,600
Reconcile the balance of cash book on 31/3/2017.

2. From the following particulars, prepare a Bank Reconciliation Statement for Jindal o set Ltd. (ICAI-SM)
i. Balance as per cash book is Rs. 2, 40,000
ii. Cheques issued but not presented in the bank amounts to Rs. 1, 36,000.
iii. Cheques deposited in bank but not yet cleared amounts to Rs. 90,000.
iv. Bank charges amounts to Rs. 300.
v. Interest credited by bank amounts to Rs. 1,250.
vi. The balance as per pass book is Rs. 2, 86,950.

3. On 31st March 2017, the Bank Pass Book of Namrata showed a balance of Rs. 1, 50,000 to her credit while balance as
per cash book was Rs. 1, 12,050. On scrutiny of the two books, she ascertained the following causes of difference:

1 - CA. SHAINDRA SHEKHAWAT


SHEKHAWAT ACADEMY CA FOUNDATION l ACCOUNTS
i. She has issued cheques amounting to Rs. 80,000 out of which only Rs. 32,000 were presented for
payment.
ii. She received a cheque of Rs. 5,000 which she recorded in her cash book but forgot to deposit in the bank.
iii. A cheque of Rs. 22,000 deposited by her has not been cleared yet.
iv. Mr. Gupta deposited an amount of Rs. 15,700 in her bank which has not been recorded by her in Cash
Book yet.
v. Bank has credited an interest of Rs. 1,500 while charging Rs. 250 as bank charges.
Prepare a bank reconciliation statement.

4. The Cash Book of M/s ABC shows Rs. 27,570 at the balance at bank as on 31 st march, 2017. But this does not
agree with the balance as per the Bank Statement. On scrutiny following discrepancies were found: (RTP-M18)
vi. Subsidy Rs. 10,250 received from the government directly by the bank, but not advised to the company.
vii. On 15th March, 2017 the payments side of the Cash-book was under cast by Rs. 350.
viii. On 20th March, 2017 the debit balance of Rs. 2,156 on the previous day, was brought forward as credit
balance in the Cash-book.
ix. A customer of the M/s ABC, who received a cash discount of 5% on his account of Rs. 2,000, paid to M/s
ABC a cheque on 24th march, 2017. The cashier erroneously entered the gross amount in the Cash-book,
x. On 10th march, 2017 a bill for Rs. 5,700 was discounted from the bank, entered in Cash-book, but
proceeds credited in Bank Statement amounted to Rs. 5,500 only.
xi. A cheque issued amounting to Rs. 1,725 returned marked ‘out of date’. No entry made in Cash-book.
xii. Insurance premium Rs. 756 paid directly by bank under a standing order. No entry made in Cash-book.
xiii. A bill receivable for Rs 1,530 discounted for Rs. 1,500 with the bank had been dishonored on 30th March,
2017, but advice was received on 1st April, 2017.
xiv. Bank recorded a Cash deposit of Rs. 1,550 as Rs. 1,505.
Prepare Bank Reconciliation Statement on 31 st March, 2017.

5. Prepare a Bank Reconciliation Statement of Shri Hari as on 31 st march, 2018: (RTP-N18)


i. Balance as per Pass Book is Rs. 10,000.
ii. Bank collected a cheque of Rs. 500 on behalf of Shri Hari but wrongly credited to Shri Hari’s Account
(another customer of bank).
iii. Bank recorded a cash deposit of Rs. 1,589 as Rs 1,598.
iv. Withdrawal column of the Pass Book undercast by Rs. 100.
v. The credit balance of Rs. 1,500 on page 5 was recorded on page 6 as debit balance.
vi. The payment of a cheque of Rs. 350 was recorded twice in the passbook.
vii. The Pass Book showed a credit for a cheque of Rs. 1000 deposited by Shri Hari (another customer of bank).

Dealing with Overdraft


6. From the following particulars ascertain the balance that would appear in the Bank Pass Book of A on 31st
December, 2017. ICAI-SM)
i. The bank overdraft as per Cash Book on 31st December, 2017 Rs. 6,340.
ii. Interest on overdraft for 6 months ending 31st December, 2017 Rs. 160 is entered in Pass Book.
iii. Bank charges of Rs. 400 are debited in the Pass Book only.
iv. Cheques issued but not cashed prior to 31st December, 2017, amounted to Rs.11, 68,000.
v. Cheques paid into bank but not cleared before 31st December, 2017 were for Rs. 22, 17,000.
vi. Interest on investments collected by the bank and credited in the Pass Book Rs.12, 00,000.

2 - CA. SHAINDRA SHEKHAWAT


SHEKHAWAT ACADEMY CA FOUNDATION l ACCOUNTS
7. On 30th November, 2018, the Cash Book of Mr. Hari showed an overdrawn position of Rs. 4,480 although his
Bank Statement showed only Rs. 3,200 overdrawn. An examination of the two records showed the following
errors: (RTP-M19)
i. The debit side of the Cash Book was undercast by Rs. 400.
ii. A cheque for Rs. 1,600 in favor of Y suppliers Ltd. Was omitted by the bank from the statement, the
cheque was debited to another customer’s Account.
iii. A cheque for Rs 172 drawn for payment of telephone bill was recorded in the Cash Book as Rs. 127 but
was shown correctly in the Bank Statement.
iv. A cheque for Rs. 425 from Mr. Pal paid into bank was dishonored and shown as such on the bank
Statement, although no entry relating to the dishonored cheque was made in the Cash Book.
v. The bank had debited a cheque for Rs. 150 to Mr. Hari’s Account by mistake, it should have been debited
by them to Mr. Kar’s Account.
vi. A dividend of Rs. 100 was collected by the bank but not entered in the Cash Book.
vii. Cheques totaling Rs. 1,300 drawn on November was not presented for payment.
viii. Cheque for Rs. 1,200 deposited on 30th November was not credited by the bank.
ix. Interest amounting to Rs. 300 was debited by the Bank but yet to be entered in the Cash Book.
You are required to prepare a Bank Reconciliation Statement on 30th November, 2018.

8. The bank pass book of account no 5678 of Mrs. Rani showed an overdraft of Rs. 33,575 on 31st March 2018.
Ongoing through the pass book, the accountant found the following (PP-M18) (10M)
i. A cheque of Rs. 1,080 credited in the pass book on 28th March 2018 being dishonored is debited again in
the pass book on 1st April 2018. There was no entry in the cash book about the dishonor of the cheque
until 15th April 2018.
ii. Bankers had credited her account with Rs, 2,800 for interest collected by them on her behalf, but the same
has not been entered in her cash book.
iii. Out of Rs. 20,500 paid in by Mrs. Rani in cash and by cheque on 31st march 2018 cheques amounting for
Rs. 7,500 were collected on 7th April 2018.
iv. Out of cheques amounting to Rs. 7,800 drawn by her on 27th March 2018 a cheque for Rs. 2,500 was
encashed on 3rd April, 2018
v. Bankers seems to have given here wrong credit for Rs. 500 paid in by her in account no. 8765 and a wrong
debit in respect of a cheque for Rs. 300 against her account no. 8765
vi. A cheque for Rs. 1,000 entered in cash book but omitted to be banked on 31st march, 2018.
vii. A bill receivable for Rs. 5,200 previously dishonored (discount Rs 200) with the bank had been dishonored
but advice was received on 1st April, 2018.
viii. A bill for Rs 10,000 was retired / paid by the bank under a rebate of Rs. 175 but the full amount of the bill
was credited in the bank column of the cash book.
ix. A cheque for Rs. 2,400 deposited into bank but omitted to be recorded in cash book and was collected by
the bank on 31st march, 2018.
Prepare Bank Reconciliation Statement as on 31st March, 2018.

Adjusted Cash Book


9. On 30th December, 2017 the bank column of A. Philip’s cash book showed a debit balance of Rs. 4,610. On
examination of the cash book and bank statement you find that:
i. Cheques amounting to Rs. 6, 30,000 which were issued to trade payables and entered in the cash book
before30th December, 2017 were not presented for payment until that date.

3 - CA. SHAINDRA SHEKHAWAT


SHEKHAWAT ACADEMY CA FOUNDATION l ACCOUNTS
ii. Cheques amounting to Rs. 2,50,000 had been recorded in the cash book as having been paid into the bank
on 30th December, 2017, but were entered in the bank statement on1st January, 2018.
iii. A cheque for Rs. 73,000 had been dishonored prior to 30th December, 2017, but no record of this fact
appeared in the cash book.
iv. A dividend of Rs. 3, 80,000, paid direct to the bank had not been recorded in the cash book.
v. Bank interest and charges amounting to Rs. 4,200 had been charged in the bank statement but not entered
in the cash book.
vi. No entry had been made in the cash book for a trade subscription of Rs. 10,000 paid vide banker’s order in
November, 2017.
vii. AchequeforRs.27,000 drawn by B. Philip had been charged to A. Philip’s bank account by mistake in
December, 2017.
You are required:
i. To make appropriate adjustments in the cash book bringing down the correct balance, and
ii. To prepare a statement reconciling the adjusted balance in the cash book with the balance shown in the
bank statement.
10. On 30thSeptember, 2017, the bank account of X, according to the bank column of the Cash-Book, was
overdrawn to the extent of Rs.4, 062. On the same date the bank statement showed a debit balance of Rs.20,
758 in favor of X. An examination of the Cash Book and Bank Statement reveals the following: (ICAI-SM)
iii. A cheque for Rs.13, 14,000 deposited on 29th September, 2017 was credited by the bank only on 3rd
October, 2017.
iv. A payment by cheque for Rs.16, 000 has been entered twice in the Cash Book.
v. On 29th September, 2017, the bank credited an amount of Rs.1, 17,400 received from a customer of X, but
the advice was not received by X until 1st October, 2017.
vi. Bank charges amounting to Rs.580 had not been entered in the Cash Book.
vii. On 6th September, 2017, the bank credited Rs.20, 000 to X in error.
viii. A bill of exchange for Rs.1, 40,000 was discounted by X with his bank. This bill was dishonored on 28th
September, 2017 but no entry had been made in the books of X.
ix. Cheques issued up to 30th September, 2017 but not presented for payment up to that date totaled Rs. 13,
26,000.
You are required:
i. To show the appropriate rectifications required in the Cash Book of X, to arrive at the correct balance on
30th September, 2017
ii. To prepare a bank reconciliation statement as on that date.

11. On 30th September, 2018, the bank account of XYZ, according to the bank column of the cash book, was
overdrawn to the extent of 8,062. An examination of the Cash book and Bank Statement reveals the following:
(PP-N19) (10M)
i. A cheque for 11,14,000 deposited on 29th September, 2018 was credited by the bank only on 3rd October,
2018.
ii. A payment by cheque for 18,000 has been entered twice in the Cash book.
iii. On 29th September, 2018, the bank credited an amount of 1,15,400 received from a customer of XYZ, but
the advice was not received by XYZ until 1st October, 2018
iv. Bank charges amounting to 280 had not been entered the cash book.
v. On 6th September 2018, the bank credited 30,000 to XYZ in error.
4 - CA. SHAINDRA SHEKHAWAT
SHEKHAWAT ACADEMY CA FOUNDATION l ACCOUNTS
vi. A bill of exchange for 1.60,000 was discounted by XYZ with his bank. The bill was dishonored on 28th
September, 2018 but no entry had been made in the books of XYZ.
vii. Cheques issued up to 30th September, 2018 but not presented for payment up to that date totaled
13,46,000.
viii. A bill payable of Rs. 2,00,000 had been paid by the bank but was not entered in the cash book and bill
receivable for Rs. 60,000 had been discounted with the bank at a cost of t. 1,000 which had also not been
recorded in cash book.
You are required:
To show the appropriate rectification required in the cash book of XYZ, to arrive at the correct balance on 30th
September, 2018 and to prepare a Bank Reconciliation Statement as on that date.
Home Work
12. Prepare a Bank Reconciliation statement from the following as on 31 st Mar, 2018. (PP-N18) (10M) (RTP-M20)

Particulars Rs.
Debit balance as per bank column of the cash book. 18,60,000
Cheque issued to creditors but not yet presented to the bank for payment. 3,60,000
Dividend received by the bank but not entered in the cash book. 2,50,000
Interest allowed by the bank. 6,250
Cheques deposited into bank for collection but not collected by bank up to this 7,70,000
date.
Bank charges not entered in Cash Book. 1,000
A cheque deposited into bank was dishonored, but no intimation received. 1,60,000
Bank paid house tax on our behalf, but no intimation received from bank in this 1,75,000
connection.
13. Prepare the Bank Reconciliation Statement of M/s R.K. Brothers on the 30 th June 2018 from the particulars given
below: (PP-M19) (10M)

i. The Bank Pass Book had a debit balance of Rs. 25000 on the 30th June, 2018.
ii. A cheque worth Rs. 400 directly into bank by a customer but no entry was made in the Cash.
iii. Out of cheque issued worth Rs. 34,000, cheques amounting to Rs. 20,000 only were presented for
payment till 30th June, 2018.
iv. A cheque for Rs. 4,000 received and entered in the Cash Book but it was not sent to the Bank.
v. Cheques worth Rs. 20,000 had been sent to bank for collection but collection was reported by the Bank as
under.
a. Cheques collected before 30th June, 2018, Rs. 14,000
b. Cheques collected on 10th July, 2018, Rs. 4,000
c. Cheques collected on 12th July, 2018, Rs, 2,000
vi. The Bank made a direct payment of Rs. 600 which was not recorded in the Cash Book.
vii. Interest on Overdraft charged by the bank Rs. 1,600 was not recorded in the Cash Book.
viii. Bank charges worth Rs. 80 have been entered twice in the cash book whereas Insurance charges for Rs.
70 directly paid by bank was not at all entered in the Cash Book.
ix. The credit side of bank column of Cash Book was undercast by Rs. 2,000.

14. From the following information, prepare a Bank reconciliation statement as at 31st December, 2017 for
Messrs. New Steel Limited (CAI-SM):

5 - CA. SHAINDRA SHEKHAWAT


SHEKHAWAT ACADEMY CA FOUNDATION l ACCOUNTS
(1) Bank overdraft as per Cash Book on 31st December, 2017 22,45,900
(2) Interest debited by Bank on 26th December, 2017 but no advice received 2,78,700
(3) Cheque issued before 31st December, 2017 but not yet presented to Bank 6,60,000
(4) Transport subsidy received from the State Government directly by the Bank 14,25,000
but not advised to the company
(5) Draft deposited in the Bank, but not credited till 31st December, 2017 13,50,000
(6) Bills for collection credited by the Bank till 31st December, 2017 but no 8,36,000
advice received by the company
(7) Amount wrongly debited to company account by the Bank, for which no 7,40,000
details are available

16. The Cash Book of Mr. Gadbadwala shows Rs. 8, 36,400 as the balance at Bank as on 31st December, 2017,
but you find that it does not agree with the balance as per the Bank Pass Book. On scrutiny, you find the
following discrepancies:
i. On 15th December, 2017 the payment side of the Cash Book was under cast by Rs.10, 000.
ii. A cheque for Rs.1, 31,000 issued on 25th December, 2017 was not taken in the bank column.
iii. One deposit of Rs.1,50,000 was recorded in the Cash Book as if there is no bank column therein.
iv. On 18th December, 2017 the debit balance of Rs.15, 260 as on the previous day, was brought forward as
credit balance.
v. Of the total cheques amounting to Rs.11, 514 drawn in the last week of December, 2017, cheques
aggregating Rs.7, 815 were encashed in December.
vi. Dividends of Rs.25, 000 collected by the Bank and subscription of Rs.1, 000 paid by it were not recorded
in the Cash Book.
vii. One out-going Cheque of Rs.3, 50,000 was recorded twice in the Cash Book.
Prepare a Reconciliation Statement.

17. When Nikki & Co. received a Bank Statement showing a favorable balance of Rs.10, 39,200 for the period
ended on 30th June, 2017, this did not agree with the balance in the cash book. An examination of the Cash
Book and Bank Statement disclosed the following:
i. A deposit of Rs.3, 09,200 paid on 29th June, 2017 had not been credited by the Bank until 1st July, 2017.
ii. 30th March, 2017 the company had entered into hire purchase agreement to pay by bank order a sum of
Rs.3, 00,000 on the 10th of each month, commencing from April, 2017. No entries had been made in Cash
Book.
iii. Customer of the firm, who received a cash discount of 4% on his account of Rs.4, 00,000 paid the firm a
cheque on 12th June. The cashier erroneously entered the gross amount in the bank column of the Cash
Book.
iv. Bank charges amounting to Rs.3,000 had not been entered in Cash-Book
v. 28th June, a customer of the company directly deposited the amount in the bank Rs. 4, 00,000, but no
entry had been made in the Cash Book.
vi. Rs.11, 200 paid into the bank had been entered twice in the Cash Book.
vii. Debit of Rs. 11, 00,000 appeared in the Bank Statement for an unpaid cheque, which had been returned
marked ‘out of date’. The cheque had been re-dated by the customer and paid into Bank again on 5th July,
2017.
Prepare Bank Reconciliation Statement on 30 June, 2017

18. From the following particulars prepare a bank reconciliation statement as on 31st December 2017:
i. On 31st December, 2017 the cash-book of a firm showed a bank balance of Rs. 60,000 (debit balance).

6 - CA. SHAINDRA SHEKHAWAT


SHEKHAWAT ACADEMY CA FOUNDATION l ACCOUNTS
ii. Cheques had been issued for Rs. 15, 00,000, out of which cheques worth Rs. 4, 00,000 only were presented
for payment.
iii. Cheques worth Rs. 11, 40,000 were deposited in the bank on 28th December, 2017 but had not been
credited by the bank. In addition to this, one cheque for Rs. 5, 00,000 was entered in the cash book on 30th
December, 2017 but was banked on 3rd January, 2018.
iv. A cheque from Susan for Rs. 4, 00,000 was deposited in the bank on 26th December 2017 but was
dishonored and the advice was received on 2nd January, 2018.
v. Pass-book showed bank charges of Rs. 2,000 debited by the bank.
vi. One of the debtors deposited a sum of Rs. 5, 00,000 in the bank account of the firm on 20th December,
2017 but the intimation in this respect was received from the bank on 2nd January, 2018.
vii. Bank pass-book showed a credit balance of Rs. 3, 82,000 on 31st December, 2017.

19. According to the cash-book of Gopi, there was a balance of Rs. 44, 50,000 in his bank on 30th June, 2017.
On investigation you find that:
i. Cheques amounting to Rs. 6, 00,000 issued to creditors have not been presented for payment till the date.
ii. cheques paid into bank amounting to Rs. 11,05,000 out of which cheques amounting to Rs. 5,50,000 only
collected by the bank up to 30th June 2017.
iii. A dividend of Rs. 40,000 and rent amounting to Rs. 6, 00,000 received by the bank and entered in the pass-
book but not recorded in the cash book.
iv. Insurance premium (up to 31st December, 2017) paid by the bank Rs. 27,000 not entered in the cash book.
v. The payment side of the cash book had been under casted by Rs. 5,000.
vi. Bank charges Rs. 1,500 shown in the pass book had not been entered in the cash book.
vii. Bill payable of Rs. 2, 00,000 had been paid by the bank but was not entered in the cash book and bill
receivable for Rs. 60,000 had been discounted with the bank at a cost of Rs. 1,000 which had also not been
recorded in cash book.
Required:
i. to make the appropriate adjustments in the cash book, and
ii. to prepare a statement reconciling it with the bank pass book.

20. Prepare a bank reconciliation statement as on 30th September, 2017 from the following particulars:

Particulars Amount
Bank balance as per pass-book 10,00,000
Cheque deposited into the bank, but no entry was passed in the cash- 5,00,000
book
Cheque received, but not sent to bank 11,20,000
Credit side of the bank column cast short 2,000
Insurance premium paid directly by the bank under the standing advice 60,000
Bank charges entered twice in the cash book 2,000
Cheque issued, but not presented to the bank for payment 5,00,000
Cheque received entered twice in the cash book 10,000
Bills discounted dishonored not recorded in the cash book. 5,00,000

21. Q. Prepare a bank reconciliation statement from the following particulars on 31st March, 2017:
Debit balance as per bank column of the cash book 37,20,000

7 - CA. SHAINDRA SHEKHAWAT


SHEKHAWAT ACADEMY CA FOUNDATION l ACCOUNTS
Cheque issued to creditors but not yet presented to the bank for 7,20,000
payment
Dividend received by the bank but not yet entered in the cash book 5,00,000
Interest allowed by the bank 12,500
Cheques deposited into bank for collection but not collected by bank up 15,40,000
to this date.
Bank charges 2,000
A cheque deposited into bank was dishonored, but no intimation 3,20,000
received
Bank paid house tax on our behalf, but no information received from 3,50,000
bank in this connection.

8 - CA. SHAINDRA SHEKHAWAT

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