BANK RECONCILIATION STATEMENT Points to remember:

Positive Balance: Dr balance as per cash book / Favourable balances as per cash book/ balance as per cash book Cr balance as per pass book / Favourable balances as per pass book /balance as per pass book

Negative Balance:

/ Unfavourable balance as per cash book / Overdraft as per cash book Dr balance as per Pass book/ Unfavourable balance as per Pass book /Overdraft as per Pass book
Cr balance as per cash book If we start with Cash book balance If we start with Pass book balance Our aim To make Pass book balance equal to Cash book

Our aim To make Cash book balance equal to Pass book

Try this Question

Q 1 On December 31, 2012, the cash book of the M/s. Mona Plastics shows the credit balance Rs.6,500. Cheques amounting to Rs.3,500 deposited into bank but were not collected by the bank. Firm issued cheques of Rs. 1,000 which were not presented for payment. There was a debit in the pass book of Rs.200 for interest and Rs.400 for bank charges. Prepare Bank Reconciliation Statement. Solution:

Bank Reconciliation statement of M/s Mona Plastics As on December 31, 2012

Transactions Credit balance as per Cash book 1. Cheques amounting to Rs.3,500 deposited into bank but were not collected by the bank 2. Firm issued cheques of Rs. 1,000 which were not presented for payment. 3. Debit in the pass book of Rs.200 for interest and Rs.400 for bank charges Plus Items Rs Minus items Rs

Rough work: