Exercises of Bank Reconciliation Statement

Exercise No. I (01)

From the particulars given below, prepare Bank Reconciliation Statement with the
help of Revised Cash Book as on December 31, 2012.

1) Overdraft balance as per Cash Book Rs. 113,000/-.

2) Amount Deposited directly into bank by a debtor Rs. 1,000, in December but
not recorded in Cash Book.
3) Interest on overdraft Rs. 200 and the Bank charges Rs. 100 are debited in
Pass Book only.
4) Cheques deposited but credited by the bank in the month of January, 2013
Rs. 4,000.
5) Cheques drawn in December but presented in the month of January, 2013,
Rs. 100,000, Rs. 6,000 and Rs. 2,000.

Balance as per Revised Cash Book (Cr.) Rs. 112,300/-.

BRS: Balance Overdrawn as per Pass Book Rs. 8,300/-.

Exercise No. II (02)

From the particulars given below, prepare Bank Reconciliation Statement with the
help of Revised Cash Book as on July 31, 2012.

On 31st July, 2012, the Cash Book of a trader shows an overdraft balance (credit) of
Rs. 8,000. It is known from the comparison of the two books that out of the cheques
amounting to Rs. 32,000 and Rs. 76,000 issued on 27.7.2012, cheque for 32,000
was presented to the bank on 5.8.2012. He has deposited cheques amounting to Rs.
48,000, Rs. 60,000, Rs. 8,000 and Rs. 30,000 in the last week of July, 2012. The
first two cheques were collected by the bank within July, but the other two cheques
were collected in August, 2012. The Pass Book shows a debit of Rs. 4,000 in
respect of interest, which is not recorded in the Cash Book within July, 2012.

Balance as per Revised Cash Book (Cr.) Rs. 12,000/-.

BRS: Balance Overdrawn as per Pass Book Rs. 18,000/-.

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Exercise No. III (03)

From the particulars given below, prepare Bank Reconciliation Statement with the
help of Revised Cash Book as on July 31, 2010.

1) Favourable balance as per Cash Book Rs.8,000/-.

2) Cheques amounting to Rs. 32,000 , Rs. 36,000 and Rs. 40,000 issued during
the month and a cheque for Rs. 36,000 was presented to the bank on
2.1.2011.
3) Cheques deposited into the bank are Rs. 48,000 , Rs. 60,000 , Rs. 12,000
and Rs. 40,000 in the last week of July, but of these cheques for Rs. 12,000
and Rs. 40,000 were collected on 3.8.2010.
4) Interest debited in the Pass Book Rs. 4,000 but not recorded in the Cash
Book.

Balance as per Revised Cash Book (Dr.) Rs. 4,000/-.

BRS: Balance Overdrawn as per Pass Book Rs. 12,000/-.

Exercise No. IV (04)

From the particulars given below prepare Bank Reconciliation Statement with the
help of Revised Cash Book as on March 31, 2012.

a) Overdraft balance as per Cash Book Rs.6,000/-.

b) Cheques deposited and credited by the bank but forgotten to be recorded in
the Cash Book Rs. 34,000.
c) Unpresented cheques before 31.3.2012 Rs. 6,000.
d) Bills proceeds collected by the bank but not recorded is the Cash Book Rs.
4,000.
e) Insurance premium paid by the bank and debited in the Pass Book but not
recorded in the Cash Book Rs. 8,000.
f) Interest on investment collected and credited by the bank on 26 th March but
recorded in the Cash Book on 31.3.2012 Rs. 3,000.
g) Debit side of the Cash Book (Bank Column) was under cast by Rs. 2,000.
h) Cheques issued and paid by the bank but wrongly entered in the cash column
of the Cash Book; Rs. 16,000.

Balance as per Revised Cash Book (Dr.) Rs. 10,000/-.

BRS: Favourable balance as per Pass Book Rs. 16,000/-.

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Exercise No. V (05)

Shahid’s Cash Book showed a bank overdraft of Rs. 30,000 on 31st March, 2011. On
Comparison of the two books, the following differences were noted down. You are
required to prepare Bank Reconciliation Statement with the help of Revised Cash
Book as on March 31, 2011.

1. An outstation cheque for Rs. 2,800, lodged on 30 th March, 2011 did not
appear in the Pass Book.
2. Cheques issued to totaling Rs. 42,000 had not been presented at the bank.
3. Interest on overdraft debited in the Pass Book was Rs. 400 but not recorded
in the Cash Book.
4. Insurance premium paid and debited by the bank in the Pass Book Rs. 2,000
but not entered in the Cash Book.
5. Interest on investment collected by the bank appeared in the Pass Book only
Rs. 600.
6. Dividend on shares collected by the bank Rs. 600 credited in the Pass Book.
7. In March, the trader had got a bill discounted by his bank for Rs. 1,980 and
entered the amount in the Cash Book as Rs. 2,000 but the proceeds credited
in the Pass Book were Rs. 1,980:

Balance as per Revised Cash Book (Cr.) Rs. 31,220/-.

BRS: Favourable balance as per Pass Book Rs. 7,980/-.

Exercise No. VI (06)

From the particulars given below, prepare Bank Reconciliation Statement with the
help of Revised Cash Book as on June 30, 2012.

i. Favourable balance as per Cash Book Rs.47,020/-.

ii. Cheques for Rs.6,000 deposited for collection but not credited by the bank
prior to 30th June, 2012.
iii. Cheques amounting to Rs.8,000 were issued on 28th June, out of which
cheques for Rs.6,000 were cashed up to 30th June, 2012.
iv. A wrong debit of Rs.800 appeared in Pass Book.
v. Bank charges Rs.20 appeared in the Pass Book but not in the Cash Book.
vi. Interest on investment collected by the bank not yet recorded in the Cash
Book Rs.2000.

Balance as per Revised Cash Book (Dr.) Rs. 49,000/-.

BRS: Favourable balance as per Pass Book Rs. 44,200/-.

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Exercise No. VII (07)

From the particulars given below of Naveed & Company, prepare Bank
Reconciliation Statement with the help of Revised Cash Book as on March 31, 2010.

a) Favourable balance as per Cash Book Rs.70,500/-.

b) Cheques issued in the last week of March, 2010 but not presented for
payment till 31st March, 2010 amount to Rs.30,000.
c) Cheques paid into the Bank on 26th March, 2010, but not collected prior to 31st
March, 2010 amount to Rs.18,000.
d) Interest on deposits of Rs.3,000 was credited in the Pass Book but not
recorded in the Cash Book till 31st March, 2010.
e) A customer paid into the Bank Rs.22,500 directly as appeared in the Pass
Book but not in the Cash Book.
f) Dividend Money of Rs.12,000 on the shares held by Naveed & Co. was
received directly by the bank on 29th March, 2010, but the intimation was sent
to them on 2nd April, 2010.

Balance as per Revised Cash Book (Dr.) Rs. 108,000/-.

BRS: Favourable balance as per Pass Book Rs. 120,000/-.

Exercise No. VIII (08)

On 30th June, 2009, the Cash Book of Mr.Zubair showed an overdraft balance of
Rs.32,000/-. This balance did not agree with the balance as per the Pass Book. On
comparing the two books, the following discrepancies were noted;

1. Cheques for Rs.8,000 paid into the bank for collection on 28th June, 2009
have not yet been collected.
2. Cheques for Rs.6,000 issued on 26th June, 2009 have not yet been presented
for payment.
3. An amount of Rs.1,200 for interest on overdraft was debited in the Pass Book
but was intimated to Mr. Zubair on 2nd July, 2009.
4. Collection charges of Rs.28 were entered in the Pass Book but not in the
Cash Book.
5. Mr. Zubair paid into his bank account in cash an amount of Rs.4,000 but it
was wrongly credited to Mr. Yousaf’s account.
6. On 30th June, 2009, the bank received interest of Rs.3, 000 from a company
on Mr. Zubair’s deposit with that company.

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From the particulars given above, prepare Bank Reconciliation Statement with the
help of Revised Cash Book as on June 30, 2009.

Balance as per Revised Cash Book (Cr.) Rs. 30,228/-.

BRS: Balance Overdrawn as per Pass Book Rs. 36,228/-.

Exercise No. IX (09)

From the particulars given below, prepare Bank Reconciliation Statement with the
help of Revised Cash Book as on December 31, 2011.

1. Favourable balance as per Cash Book Rs.5,465/-.

2. Bank charges for collecting an out station cheque Rs.15 appeared only in the
Pass Book.
3. Interest on overdraft charged by the bank for half year, Rs.550, debited in the
Pass Book only.
4. Two cheques for Rs.15,000 and Rs.10,000 paid in on 30th December, 2011,
were not credited by the Bank.
5. Two cheques for Rs.2,100 and Rs.8,000 issued in December, 2011 had not
been presented at the bank during the month.

Balance as per Revised Cash Book (Dr.) Rs. 4,900/-.

BRS: Balance Overdrawn as per Pass Book Rs. 10,000/-.

Exercise No. X (10)

On 31st August, 2013, the Bank Balance of Mr. Safdar Khan appeared at Rs.6,800 in
his Cash Book. On reconciling with the Pass Book the following information was
ascertained. You are required to prepare Bank Reconciliation Statement with the
help of Revised Cash Book as on August 31, 2013.

1. Debit in respect of the Bank charges Rs.64, credited in respect of the bank
interest Rs.280 and dividend received by the bank as Rs.1,800 were not
passed in the Cash Book.
2. A Bill receivable for Rs.1,400 was realized by the bank, but no entry was
passed in the Cash Book.
3. Cheques for Rs.1,400 were issued but not yet presented for payment.
4. Cheques for Rs.1,600 were paid into the bank, but not collected and credited
by the bank.
5. A cheque for Rs.20 was not shown in the cash Book as dishonoured.

Balance as per Revised Cash Book (Dr.) Rs. 10,196/-.

BRS: Favourable balance as per Pass Book Rs. 9,996/-.

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Exercise No. XI (11)

A trader prepares at the end of each month, a Bank Reconciliation Statement for his
business. Draft one such statement with the help of Revised Cash Book from under
mentioned items as on 31.12.2013.

1. Favourable balance as per Cash Book Rs.80,000/-.

2. Cash and cheques totaling Rs.147,800 were sent to the bank in the month of
December, but out of them one cheque for Rs.18, 000 was credited in the
Pass Book on 2nd January, 2014.
3. On 26th December cheques were issued in favour of Creditors for Rs.38,000,
but out of them two cheques for Rs.28,000 were encashed on 3rd January,
2014.
4. One customer had deposited directly into the bank Rs.5,000 but it was not
mentioned in the Cash Book.
5. The trader had withdrawn from the bank Rs.14,000 but the same had not
been entered in the Cash Book.
6. On 29th December, a cheque for Rs.12,000 was received and entered in the
Cash Book but had been omitted to be sent to the bank.
7. On 27th December, 2013 Rs.700 were credited in the Pass Book as interest
on deposits but the same had been recorded in the Cash Book on 31 st
December, 2013.

Balance as per Revised Cash Book (Dr.) Rs. 71,000/-.

BRS: Favourable balance as per Pass Book Rs. 69,000/-.

Exercise No. XII (12)

From the following particulars of Mr. Ahtasham Shabbir Qureshi for his Bank # 2,
prepare a Bank Reconciliation Statement with the help of Revised Cash Book as on
31.12.2013.

1) Overdraft balance as per Cash Book Rs.39,200/-.

2) A cheque of Rs.800, which was received from a customer, was entered in the
bank column of the Cash Book in December, but was paid into the bank in
January next.
3) The trader has issued cheques in December for Rs.64,000 of which he finds
that a cheque for Rs.28,000 was cashed in December, a cheque for
Rs.14,000 was cashed on 2nd January and the others were not presented at
all.
4) The banker gave a wrong credit in Account No.1 in respect of a cheque for
Rs.18,000 which was deposited in Account No.2.

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 5) As per the standing instructions, the following payments were made by the
bank out of Account No.2 ;
a) Insurance Premium Rs.520
b) Trade Subscription Rs.2,160
6) The bank has received the following amounts for Account No.2;
a) Dividend on shares Rs.1,280
b) Insurance Claim Rs.3,400
7) Bank charges Rs. 100 were not recorded in the Cash Book.

Balance as per Revised Cash Book (Cr.) Rs. 37,300/-.

BRS: Balance Overdrawn as per Pass Book Rs. 20,100/-.

Exercise No. XIII (13)

A trader Mr. Muhammad Azam Farooq has two Bank Accounts – A/c No.1 and A/c
No.2. The following particulars relating to A/c No.1 are available on 31st March, 2013:

1. Overdraft balance as per Cash Book Rs.58,360/-.

2. Cheques drawn prior to 31st March but not presented as yet Rs.16,000.
3. Cheques paid into the bank on 31st March, 2013 but not yet credited
Rs.28,000.
4. Interest debited by the bank but not entered in the Cash Book as yet
Rs.1,600.
5. Transfer from A/c No.2 to A/c No.1 recorded by the bank on 31 st March, but
not entered in the Cash Book Rs.12,000.
6. Bank charges debited by the Bank but not recorded in the Cash Book as yet
Rs.40.

From the particulars given above, prepare Bank Reconciliation Statement with the
help of Revised Cash Book as on March 31, 2013.

Balance as per Revised Cash Book (Cr.) Rs. 48,000/-.

BRS: Balance Overdrawn as per Pass Book Rs. 60,000/-.

Exercise No. XIV (14)

On 30th November 2013, the Cash Book of Mr. Nadeem shows Rs.33,456/- as bank
balance. But it does not agree with the balance as shown by the Pass Book. On
comparison, you find the following discrepancies.

1. Balance as per Cash Book Rs.33,456/-.

2. The payment side of the Cash Book was under cast by Rs.400.
3. A cheque issued for Rs.524 on 25th November, was recorded in the Cash
Column.
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 4. A cheque of Rs.600 deposited was recorded in the Cash column of the Cash
Book.
5. On 20th November, the debit balance of Rs.6,104 as on the previous day was
brought forward as credit balance.
6. Of the total cheques amounting to Rs.46,056 drawn in the last week of
November, 2013, cheques totaling Rs.31,260 encashed in November.
7. Dividends of Rs.1, 000 collected by the bank were not entered in the Cash
Book.
8. Trade subscription of Rs.400 paid by the bank was not recorded in the Cash
Book.
9. One outgoing cheque for Rs.1,400 was recorded twice in the Cash Book.

From the particulars given above, prepare Bank Reconciliation Statement with the
help of Revised Cash Book as on November 30, 2013.

Balance as per Revised Cash Book (Dr.) Rs. 47,340/-.

BRS: Favourable balance as per Pass Book Rs. 62,136/-.

Exercise No. XV (15)

From the particulars given below of Punjab Stores, prepare Bank Reconciliation
Statement with the help of Revised Cash Book as on February 28, 2013.

a) Overdraft balance as per Cash Book Rs.60,000/-.

b) A wrong debit of Rs.2,000 has been given by the bank in the Pass Book.
c) Bank charges made by the bank Rs.480 were recorded only in the Pass
Book.
d) Out of the cheques for Rs.100,000 paid into the bank, cheques for Rs.75,000
were cleared and credited by the bank.
e) Two cheques for Rs.30,000 and Rs.60,000 were issued but out of them only
one cheque for Rs.30,000 was presented for payment for payment up to 28th
Feb.2013.
f) Dividend on shares Rs.18,000 was collected directly by the bank. The trader
has no information about this.
g) The Pass Book contains an entry for Rs.20,000 being a direct payment made
by a customer into the bank.

Balance as per Revised Cash Book (Cr.) Rs. 22,480/-.

BRS: Favourable balance as per Pass Book Rs. 10,520/-.

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Exercise No. XVI (16)

The Cash Book of a trader (only Bank Column) is given below for the month of July,
2012.

Rs. Rs.

Balance b/d 56,280 Payments 620,800

Receipts 602,920 Balance c/d 38,400

659,200 659,200

On comparing, the Cash Book with the Bank Statement (Pass Book), the following
discrepancies was noted.

1. Bank charges of Rs.1,400 shown on the bank statement have not been
recorded in the Cash Book.
2. A cheque drawn for Rs.1,880 has been recorded as a receipt.
3. A cheque for Rs.720 has been returned dishonored by the bank but not
written back in the Cash Book.
4. The opening balance of the Cash Book should have been brought down as
Rs.58,800 instead of Rs.56,280.
5. Three cheques issued to the suppliers for Rs.8,560, Rs.14,800 and Rs.1,200
have not yet been presented to the bank.
6. Pay-in-slip of the month of July, showing a deposit of Rs.30,000 has not yet
been credited by the Bank.
7. The cash received on July 31st amounted to Rs.31,680. It was left at the bank
through CDM (cash Deposit Machine) after banking hours on July 31st and
therefore was not recorded by the bank on the July Statement.
8. The bank has wrongly debited a cheque for Rs.2,880 to the trader’s account.

From the particulars given above, prepare Bank Reconciliation Statement with the
help of Revised Cash Book as on July 31, 2012.

Balance as per Revised Cash Book (Dr.) Rs. 35,040/-.

BRS: Balance Overdrawn as per Pass Book Rs. 4,960/-.

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