Practice Questions – Bank Reconciliation Statement (BRS)

Example – 1

ABC Corp. has a balance of ₹2000 as per passbook as on 31st March 2023. However, the
balance as per cash book as on 31st March 2023 is ₹2210.
Let’s Understand the Transaction Details.

1. A check of ₹500 was deposited, but it is not yet processed by the bank.
2. Bank charges of ₹60 were recorded in the passbook, but not in the cash book.
3. Checks worth ₹300 were issued, but not presented.
4. Bank interest of ₹50 was recorded in the passbook, but not in the cash book.

Example – 2

JPN & Co. has a balance of ₹20,000 as per passbook as on 31st March 2022.

Let’s Understand the Transaction Details.

1. Three checks of ₹1000, ₹1500, ₹1750 were deposited in the bank on 30 th December
2021 but were recorded in the bank statement in January 2022.
2. A check of ₹1000 was issued on 31st December 2021, was not processed.
3. A dividend of ₹500 on stocks was credited to the bank account, but not recorded in
the cash book.
4. A direct deposit of ₹600 was made in a bank account by a customer, which was not
recorded in the cash book.
5. Bank charges of ₹60 were entered only in the bank passbook.
6. Balance as per cash book on 31st December 2021 was ₹22,210.

Example – 3

From the following particulars, you are required to find out the errors in cash book and bank
statement by using missing method and prepare Bank Reconciliation Statement as on 31-12-
2016, for Chand Bibi Ltd:
(i) Bank balance overdraft as per cash book – ₹80,000
(ii) Check recorded for collection but not sent to the bank – ₹10,000
(iii) Credit side of the cash book cast short – ₹1,000
(iv) Premium on proprietor’s Life Insurance Policy (LIP) paid on standing order – ₹5,000
(v) Bank Charges recorded twice in the cash book – ₹100
(vi) Customer’s check returned by the bank as dishonored – ₹4,000
(vii) Bill Receivable collected by the bank directly on the behalf of company – ₹20,000
(viii) Check received entered twice in the cash book – ₹6,000.
(ix) Check issued but dishonored on technical grounds – ₹3,000
(x) A check deposited into the bank of worth ₹45,000 but ₹8,000 check was not
collected by bank.