UNIT- 4 RECTIFICATION OF ERRORSAND BANK RECONCILIATION STATEMENT

BRS FORMAT

BRS as on………
Particulars Rs.
Bank balance as per cash book or Bank Overdraft as per pass XXX
book XXX
(+) Total of Transactions increasing cash book balance XXX
XXX
(-)Total of Transactions decreasing cash book balance
XXX
Bank balance as per pass book or Bank Overdraft as per cash
book

(Or)

BRS as on………
Particulars Rs.
Bank balance as per pass book or Bank Overdraft as XXX
per cash book XXX
(+) Total of Transactions decreasing cash book balance XXX
XXX
(-)Total of Transactions increasing cash book balance
XXX
Bank balance as per cash book or Bank Overdraft as
per pass book

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 LIST OF TRANSACTIONS EFFECTING CASH BOOK BALANCE
S.No. Transactions increasing cash book
balance
1 Cheque issued but not cashed
2 Direct payment into bank account by a
third party entered in the pass book but
not entered in cash book
3 Overcasting of credit side of the cash
book
4 Wrong credit in the pass book
5 Interest on bank balance credited in
pass book only
6 Undercasting of debit side of cash
book
7 Cheque/Bill issued & entered in cash
book but dishonoured by bank
8 Wrong debit in the cash book
9 Wrong carry forward of debit balance
as credit balance in pass book
10 Interest & dividend collected by bank
& credited in pass book
11 Cheque deposited into bank for
collection & entered in pass book but
not entered in cash book
Total of Transactions increasing cash
book balance
Rs. Transactions decreasing cash book balance Rs.
XX Cheques deposited into bank for collection but XX
not collected
XX Cheque received from third person entered in XX
cash book but not deposited into the bank
XX Overcasting of debit side of the cash book XX
XX Wrong debit in the pass book XX
XX Bank charges & interest on overdraft debited XX
in pass book but not entered in cash book
XX Undercasting of credit side of cash book XX
XX Cheques & bills deposited (discounted) into XX
the bank for collection & entered in cash book
but dishonoured
XX Wrong credit in the cash book XX
XX Wrong carry forward of credit balance as XX
debit balance in pass book
XX Payment made by the bank on behalf of XX
customer & debited in pass book
XX Bill/Cheque discounted with the bank XX
dishonoured debited in pass book but not
entered in cash book
XX Total of Transactions decreasing cash book XX
balance

Sums:
1. From the following particulars of Mr.Arun, prepare Bank Reconciliation Statement as on March
31, 2016:
1. Bank balance as per cash book Rs.50000
2. Cheques issued, but not presented for payment Rs.6000
3. Dividend on shares collected by the bank and credited in the pass book Rs.8000
4. Bank charges debited in the pass book only Rs.400
5. A cheque deposited into bank, but not collected by the bank Rs.5000
6. Interest credited in the pass book only Rs.500
7. Insurance premium paid directly by the bank as per standing advice Rs.1000

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2. From the following particulars of Mr.Mukesh, prepare Bank Reconciliation Statement as on Dec
31, 2016:
1. Bank balance as per cash book Rs.20000
2. Cheques issued, but not cashed prior to Dec 31, 2016 Rs.4000
3. Interest on investments collected by the bank and credited in the pass book Rs.2000
4. Bank charges debited in the pass book only Rs.100
5. Cheque paid into bank, but not cleared before Dec 31, 2012 Rs.3000
6. Interest credited in the pass book only Rs.400
7. Electricity bill paid by the bank under standing order Rs.300

3. From the following particulars of Mr.Kumar, prepare Bank Reconciliation Statement as on June
30, 2016:
1. Bank balance as per cash book Rs.80000
2. Out of cheques issued for Rs.10000, cheques for Rs.2000 cashed before June 30, 2016
3. There was a wrong credit in the pass book for Rs.5000
4. Bank charges debited in the pass book only Rs.300
5. Out of cheques amounting to Rs.8000 deposited into bank, Rs,3000 only collected before June
30,2012.
6. Payment received from a customer directly by the bank Rs.1000
7. Bills discounted dishonoured Rs.4000

4. The bank pass book of Mr.Anurag showed a balance of Rs.10000 on May 31, 2017.
1. Cheques issued, but not presented for payment Rs.2000
2. The payment side of the cash book (bank column) was overcast by Rs.1000
3. Bank commission debited in the pass book only Rs.100
4. Cheques of Rs.4000 deposited into bank of which Rs.3000 only collected in May
5. Interest on bank balance credited in the pass book only Rs.200
6. Club bill paid by the bank as per standing order Rs.900 Prepare a Bank Reconciliation
Statement as on May 31, 2017.

5. The bank pass book of Mr. Tharun showed a balance of Rs.55000 on Jan 31,2012.
1. Cheques issued before Jan 31,2012, but not presented for encashment until that date Rs.9000
2. Two cheques of Rs.3900 and Rs.2100 were deposited into a bank on Jan 31, 2012 but the bank
gave credit for the same in Feb 2012.
3. There was also a debit in the pass book of Rs.2500 in respect of a cheque dishonoured on Jan
31,2012
4. A bill receivable for Rs.1000 discounted with the bank was dishonoured.
5. Direct deposit into a bank by a customer omitted in cash book Rs.3500
6. The debit side of the cash book (bank column) undercast by Rs.1000 Prepare a Bank
Reconciliation Statement as on Jan 31, 2012.

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6. From the following particulars, prepare a Bank Reconciliation Statement of Mr.Vishnu as on
30th April 2016 and ascertain bank balance as it would appear in cash book:
1. Bank pass book showed a balance of Rs.25000 on 30th April.
2. Bank charges of Rs.250 has been debited in the pass book, but not been entered in the cash book.
3. There was a wrong debit in the pass book for Rs.1000
4. Cheques issued, but not encashed prior to 30th April, amounted to Rs.1500
5. Cheques sent to bank for collection, but remained uncollected Rs.2500
6. Interest on Investments collected by the bank and credited in the pass book Rs.1800
7. Payment by a cheque Rs.1900 entered in cash book (bank column) as Rs.2900.

7. From the following particulars of Mr.Aditya, prepare Bank Reconciliation Statement as on July 31,
2016.
1. Bank overdraft as per cash book Rs.10000
2. Cheques issued, but not presented for payment Rs.3000
3. Dividend on shares collected by the bank and credited in the pass book Rs.2000
4. Interest on overdraft debited in the pass book only Rs.500
5. A cheque deposited into bank, but not collected by the bank Rs.5000
6. Direct deposit into bank by a customer Rs.4000 for which no entry was made in cash book
7. Insurance premium paid directly by the bank as per standing instruction Rs.1500.

8. From the following particulars of Mr.Abhilash, prepare Bank Reconciliation Statement as on Aug
31,2014:
1. Bank overdraft as per cash book Rs.20000
2. Cheques issued, but not cashed prior to Aug 31, 2014 Rs.6000
3. Interest on investments collected by the bank and credited in the pass book Rs.3000
4. Bank charges debited in the pass book only Rs.100
5. Cheques paid into bank, but not cleared before Aug.31, 2014 Rs.2000
6. Credit side of the cash book (bank column) overcast by Rs.600 7. Bills discounted dishonoured
Rs.1000

9.From the following particulars of Asha&Co., prepare a Bank Reconciliation Statement as on

Oct.31,2015:
1. Overdraft as per pass book Rs.20000
2. Interest on overdraft debited in pass book only Rs.2000
3. Insurance premium paid by the bank Rs.200
4. Cheques issued, but not presented for payment Rs.6500
5. Cheques deposited, but not yet cleared Rs.6000
6. Wrongly debited by the bank Rs.500
7. The receipt side of the cash book (bnk column) was undercast by Rs.100

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10.On 31-12-2012 the pass book of Mr.Nivin showed a bank overdraft of Rs.6000. From the following
particulars, prepare a Bank Reconciliation Statement as on 31-12-2012:
1. Out of total cheques amounting to Rs.3800 issued on 28-12-2012, cheques of Rs.2000 only were
cashed so far.
2. Cheques paid into bank but not cleared before 31-12-2012 amounted to Rs.1000
3. There was a wrong debit of Rs.100 given in the pass book
4. One of the customers directly deposited Rs.300 into bank for which there was no entry in the cash
book
5. Dividend on shares collected by the bank and credited in the pass book amounted to Rs.200
6. There was a debit of Rs.500 in the pass book in respect of dishonoured cheque, but there was no
corresponding entry in the cash book.

11. From the following particulars of Mr.Kiran, prepare Bank Reconciliation Statement as on Dec 31, 2011:
1. Bank balance as per cash book Rs.75000
2. Cheques issued but not cashed prior to Dec 31, 2011 Rs.8000
3. Interest on investments collected by the bank and credited in the pass book Rs.6000
4. Bank charges debited in the pass book only Rs.500
5. Cheques paid into bank, but not cleared before Dec 31, 2011 Rs.7000
6. Interest credited in the pass book only Rs.1000
7. Electricity bill paid by the bank as per standing instruction Rs.800

12. From the following particulars of Mr.Santhosh, prepare Bank Reconciliation Statement as on Jan 31,
2016:
1. Bank balance as per cash book Rs.40000
2. Out of cheques issued for Rs.10000, cheques for Rs.6000 cashed before Jan 31, 2016
3. There was a wrong credit in the pass book for Rs.2000
4. Bank charges debited in the pass book only Rs.400
5. Out of cheques amounting to Rs.8000 deposited into bank, Rs.5000 only collected before Jan
31,2016
6. Direct payment made by a customer to the bank Rs.2000
7. Bills discounted dishonoured Rs.5000

13. Prepare Bank Reconciliation Statement from the following particulars:

1. Overdraft shown as per cash book on Dec 31,2015 Rs.10,000
2. Bank charges debited in the pass book Rs.100
3. Interest on overdraft for six months ending Dec. 31, 2015 Rs.380 debited in pass book
4. Cheques issued, but not encashed prior to Dec.31, 2015 amounted to Rs.2150
5. Interest on investment collected by the bank and credited in the pass book Rs.600
6. Cheques paid into bank, but not cleared before Dec 31, 2015 Rs.1100
7. There was a wrong credit in the pass book for Rs.830

14. From the following particulars, prepare Bank Reconciliation Statement as on 31st March 2017:
1. Bank balance as per pass book Rs.40000
2. Cheques issued, but not presented for payment Rs.7000
3. Cheques paid into bank, but not collected by the bank Rs.6000
4. Interest on investments amounting to Rs.1500 appeared only in the pass book
5. Direct deposit into the bank by a customer Rs.2000

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 6. Interest on bank deposits Rs.4300 credited in the pass book only
7. Bank charges Rs.300 debited in the pass book only.

15. Overdraft shown by the pass book of Mr.Nanda is Rs.20000. Prepare Bank Reconciliation Statement
as on Dec 31, 2016.
1. Bank charges debited as per pass book Rs.500
2. Cheques received recorded in the cash book (bank column), but not sent to the bank for collection
Rs2500
3. Received a payment directly from a customer by the bank Rs.4600
4. Cheque issued, but not presented for payment Rs.6980
5. Interest on overdraft debited by the bank Rs.100
6. Insurance premium paid by bank Rs.2500
7. Cheques deposited into the bank, but not collected Rs.3500.

RECTIFICATION OF ERRORS
Journal Entries
S.No. Transaction Entries
1 Cash Purchase Purchases A/c Dr.
To Cash A/c
2 Credit Purchase Purchases A/c Dr.
To Creditors A/c
3 Cash purchase of asset Asset A/c Dr.
To Cash A/c
4 Credit purchase of asset Asset A/c Dr.
To Creditors A/c
5 Purchase Return Creditors A/c Dr.
To Purchase Return
6 Amount paid to Creditors A/c Dr.
creditor/Discount received To Cash A/c
To Discount received A/c
7 Cash sales Cash A/c Dr.
To Sales A/c
8 Credit sales Debtors A/c Dr.
To Sales A/c
9 Sales returns Sales return A/c Dr.
To Debtors A/c
10 Amount received from debtors Cash A/c Dr.
/Discount allowed Discount A/c Dr.
To Debtors A/c
11 Contribution of capital Cash A/c Dr.
To Capital A/c
12 Drawings in cash Drawings A/c Dr.
To Cash A/c
13 Drawings in Goods Drawings A/c Dr.
To Purchases A/c
14 Payment of Expenses Expenses A/c Dr.
To Cash A/c

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 15 Income received Cash A/c Dr.
To Income A/c
16 Cash Deposited into bank Bank A/c Dr.
To Cash A/c
17 Cash withdrawal from bank Cash A/c Dr.
To Bank A/c

SUMS:
1. The purchase of machinery on 1.1.2017 for Rs.6000 was entered in the purchase A/c.
2. A sale of Rs.50 to Shriram was wrongly debited to Shrikrishna.
3. Repairs to office car valued Rs.750 was debited to Office car A/c.
4. Goods returned to Sen valued at Rs.75 were debited to Zen.
5. An office typewriter purchased for Rs.500 has been passed through the Purchase A/c.
6. An amount of Rs.200 withdrawn by the proprietor for his personal use has been debited to Trade
expenses A/c.
7. Rs.150 received from Malhotra has been credited to Mehrotra.
8. A bill of Rs.200 for old office furniture sold to Ram was entered in the sales book.
9. An amount of Rs.80 received on account of interest was credited to commission a/c.
10. A credit sales of Rs.100 to Surya has been wrongly credited to purchase a/c.
11. A Contractor’s bill for extension of premises amounting to Rs.2750 has been debited to building
repairs a/c.
12. A sales of Rs.350 to Shekar was entered in the Sales book as Rs.530.