Profit credited to our bank account
Payments made on our behalf by the bank, through our standing instructions, that we did not record in our books
Money paid in our account by our customers, dealers, agents, etc. without our knowledge
Un-presented cheques
Un-cleared cheques
The last two reasons arise because we record payments or receipts in our books when we receive / issue a cheque. But the bank records the transaction in our account at the time of actual receipts or payments. These differences are included in the bank reconciliation statement.
The first four items are either adjusted in the bank book or shown in the reconciliation statement, depending upon whether we have closed our books for the period or not. If we have closed our books of accounts, these differences will be presented in the bank reconciliation statement. If our books of accounts are not closed as yet, we will adjust our bank book and give effect of all these adjustments in the bank book.
The main idea behind bank reconciliation is that we adjust our bank book for the transactions, that remain untraced, either through a Voucher (charges, profit, standing instruction) or through a Reconciliation Statement (un-presented, un-credited cheques).
From the following particulars, prepare Bank reconciliation statement of Mr. Naveed as on June 30, 2002.
· Balance as per bank book Dr. 32,000
· Cheques deposited but not yet collected by bank 20,200
· Cheques issued but not yet paid by bank 13,000
· Dividend credited by bank on June 30, but the intimation was received later 2,000
· Interest credited by bank 250
· Bank charges debited by bank 50
It is assumed that books of accounts are not closed yet.
Solution
As books of accounts are not closed, we will find out the adjusted balance first:
Rs.
Balance as per bank book Dr. 32,000
Add/Debit Dividend credited by bank Dr. 2,000
Add/Debit Interest credited by bank Dr. 250
Less/Credit Bank charges Cr. (50)
Adjusted balance as per bank book Dr. 34,200
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