Handout – 2017: Accounts: Bank Reconciliation Statement

Q1. The following were extracted from the Bank Columns of the Cash Book of Shweta Constructions
Dr. Cr. Step 1: match identical
Date Particulars Rs. Date Particulars Rs. sides of CB & PB… and give
March 1 To Cash 18,000 March 1 By Balance 20,000 blue tick for the amounts
18 To Croydon 12,000 6 By Parashnath 1,000 present in both.. circle red
19 To A. Ash 5,000 7 By Wright 200 around the amounts
15 By Dobson 120 which didn’t reconcile.. as
shown
30 By Whipple 17,500
On 31st March, Shweta Construction received the following Bank Statement:- Step 2: Write down the
Date Particulars Withdrawn (Dr.) Deposited (Cr.) Balance transactions for the red
March 1 Balance (Dr.) 20,000 circles only. Eg.
5 Interest 500 20,500 Recd. from A.Ash Rs.5000,
12 Charges 120 20,620 not found in PB
15 Dobson 120 20,740 (make sure u write the
15 Cash 18,000 2,740 underline portions the
18 Croydon 12,000 9,260 way it is shown here.)
25 Interest on Securities 540 9,800
28 Credit Transfer 100 9,900 Step 3: Prepare the BRS
31 Dividend Warrant 500 10,400 from step 2

You are required to prepare a statement to reconcile the difference as on 31st March.
Q2. Due to mismatch in bank figures a Bank Reconciliation Statement is required from the following:-
Bank Account in your ledger shows a credit balance of Rs.72,460.
(i) One of your customers deposit Rs.3,750 directly into your bank account.
(ii) Bank Charged interest Rs. 782 on the amount overdrawn by you.
(iii) A cheque deposited last week by you amounting Rs. 32,540 has been dishonoured. Bank charged Rs.88 as
dishonouring charges.
(iv) Under your standing instructions Bank paid your insurance premium to the Insurance Company Rs. 15,000
(v) The debit side of pass book was mistakenly cast short by Rs. 742
(vi) A payment cheque of Rs. 6,656 was entered in cash book (bank column) as 6,566
(vii) Cheques deposited into bank for credit Rs.7,200; Rs.3,400; Rs.5,700. But among those only Rs. 5,700 was
entered in Pass Book and the cheque of Rs. 7,200 was not entered in Cash Book (bank column)

Q3. Give proper journal entries and prepare ledger accounts from the following transactions:-
(i) Took over a running business with Cash 76432, Furniture 15000, Debtors 27900 and Creditors 18240
(ii) Purchased raw materials Rs.112000 from ‘Tara Sales’ and paid VAT @5%
(iii) Sold in cash Rs.138700 & collected VAT @ 5%
(iv) VAT paid to Govt.
(v) Paid to ‘Tara Sales’ 110000 in full settlement
(vi) Purchased packing materials Rs.7300
(vii) Purchased raw materials from ‘Tara Sales’ in cash Rs.75000 at a discount of 10% on list price & ‘Tara Sales’ also
gave us a discount of Rs.200 on invoice amount
(viii) Purchased raw materials from ‘Tara Sales’ in cash Rs.80000 at a discount of 10% on list price & ‘Tara Sales’ also
gave us a discount of Rs.500 on invoice amount & paid VAT @5%
(ix) Sold shares for Rs.49130 (including profit of Rs.9130)
(x) Depreciation on furniture Rs.1280
(xi) Old furniture sold for Rs.2200 (loss 500)
Q3. Following are the Cash Book (bank column extract) and Bank Account Statement of ‘Swati Techno India’ for the
period 01/04/15 to 31/03/2016. As one can notice that the balances of the two does not agree. So you are
required to prepare a BRS for the same and note all assumptions for future clarifications (if any).

In the Books of ‘Swati Techno India’

CASH BOOK (Bank Column)

Dr. for the year ended as on 31st March, 2016 Cr.
Date Particulars ` Date Particulars `
1.4.15 To Balance b/d 184,900 5.4.15 By ABC (Chq no. 110982) 75,800
3.4.15 To XCEL India 100,000 18.5.15 By Tel. Bill (Chq no. 110983) 2,305
5.4.15 To Madan 75,200 2.7.15 By Sharma (Chq no. 110985) 12,000
17.5.15 To ABC & Sons 4,300 11.7.15 By Keshav (Chq no. 110986) 18,700
19.8.15 To Galaxy 132,900 30.7.15 By Rama (Chq no. 110987) 3,200
2.11.15 To Rohini & Co. 45,200 15.9.15 By XCEL (Chq no. 110988) 11,700
17.1.16 To Akhter Services 5,100 21.9.15 By Tally (Chq no. 110989) 18,000
2.2.16 To Mehta Traders 13,900 7.10.15 By Sharma (Chq no. 110990) 12,000
13.3.16 To Gupta Bros. 59,700 11.10.15 By Tel. Bill (Chq no. 110992) 2,373
25.3.16 To Saavvyy Co. 132,000 4.11.15 By Kumar (Chq no. 110993) 6,980
21.11.15 By WBVAT (online) 11,768
9.12.15 By Sharma (Chq no. 110995) 12,000
21.1.16 By Keshav (Chq no. 110996) 13,200
25.1.16 By Umesh (Chq no. 110998) 9,400
28.2.16 By Rakesh (Chq no. 110999) 2,000
29.2.16 By Tel. Bill (Chq no. 111000) 2,349
2.3.16 By Tara & Co. (Chq no. 111001) 5,000
17.3.16 By Hassan (Chq no. 111002) 8,990
21.3.16 By Sharma (Chq no. 111003) 12,000
30.3.16 By Tel. Bill (Chq no. 111004) 2,564

31.3.16 By Balance c/d 510,871

753,200 753,200

Contd….
 Statement of Account
Customer Name: M/S SWATI TECHNO INDIA Page1/2
Account Number: 0358103000007936
Statement Criteria: 01/04/2015 to 31/03/2016
Address: 2nd Floor, Roomy Towers, Near DAV School, Asansol-713304.

Sl. Txn Cheque Txn Balance

Description CR./DR.
No Date no. Amount Amount
1 2015/1-Apr Opening Balance Apr'15 - - 184,900.63
2 7-Apr Chq. Clg. 'Xcel' CR. 100,000.00 284,900.63
3 8-Apr Instrument no. 110982-ABC-SBI DR. 75,800.00 209,100.63
4 8-Apr Chq. Clg. 'Madan' CR. 75,200.00 284,300.63
5 21-May Instrument no. 110983-BSNL-SBI DR. 2,305.00 281,995.63
6 22-May Cheque Issue charges DR. 162.00 281,833.63
7 24-May Instrument no. 110984-ABC-SBI DR. 4,300.00 277,533.63
8 30-Jun Int. Credit Qtr1Apr-Jun CR. 6,782.17 284,315.80
9 5-Jul Instrument no. 110985-SHARMA-AXIS DR. 12,000.00 272,315.80
10 15-Jul SMS ch.####7936##00 DR. 60.00 272,255.80
11 15-Jul ST ch.####7936##00 DR. 9.00 272,246.80
12 17-Jul Instrument no. 110986-KESHAV-ICICI DR. 18,700.00 253,546.80
13 17-Jul Chq. Ret.-ICICI0986-Nar-Signature mismatch CR. 18,700.00 272,246.80
14 17-Jul Chq. Ret. ch. DR. 158.00 272,088.80
15 2-Aug MAX Mut.Fund-670002000. BasuDEMAT DR. 7,330.00 264,758.80
16 7-Aug Self Deposit-Cash CR. 10,000.00 274,758.80
17 8-Aug Card Pur.###3280##. FLIPKART.COM DR. 1,832.00 272,926.80
18 8-Aug Instrument no. 110987-RAMA-SBI DR. 3,200.00 269,726.80
19 20-Aug HDFC 321000210001214 /tr./NEFT/21:39 CR. 132,900.00 402,626.80
20 18-Sep Instrument no. 110988-SOURAV-KTK DR. 11,700.00 390,926.80
21 30-Sep Int. Credit Qtr2Jul-Sept CR. 9,133.00 400,059.80
22 11-Oct Instrument no. 110989-TALLY-SBI DR. 16,000.00 384,059.80
23 12-Oct ATM withdr. Citycenter Dgp./13:28/##9022 DR. 10,000.00 374,059.80
24 15-Oct Instrument no. 110991-MOHIT-AXIS DR. 5,000.00 369,059.80
25 16-Oct Instrument no. 110992-BSNL-SBI DR. 2,373.00 366,686.80
26 20-Oct Std.Instr.Dvd/MAX Mutual Fund CR. 1,893.00 368,579.80
27 22-Oct Pur/Shoppers Stop/18:04/##9022 DR. 8,720.00 359,859.80
28 8-Nov Instrument no. 110993-KUMAR-IND.BNK DR. 6,980.00 352,879.80
29 9-Nov Chq. Clg. 'Rohini' CR. 45,200.00 398,079.80
30 21-Nov GRIPS payment/WBVAT/##9022 DR. 11,768.00 386,311.80
31 12-Dec Instrument no. 110995-SHARMA-AXIS DR. 12,000.00 374,311.80
32 27-Dec ATM withdr. Bastin Bazar/08:19/##9022 DR. 5,000.00 369,311.80
33 31-Dec Int. Credit Qtr3Oct-Dec CR. 9,234.78 378,546.58
34 17-Jan UCO 5398##/tr./NEFT/17:29 CR. 5,100.00 383,646.58
35 19-Jan Self Deposit-Cash CR. 40,000.00 423,646.58
 Statement of Account
Customer Name: M/S SWATI TECHNO INDIA Page2/2

Sl. Txn Cheque Txn Balance

Description CR./DR.
No Date no. Amount Amount
36 24-Jan Instrument no. 110996-KESHAV-ICICI DR. 13,200.00 410,446.58
37 27-Jan Instrument no. 110997-RV TEX.-SBI DR. 2,000.00 408,446.58
38 28-Jan Instrument no. 110998-UMESH-BOI DR. 9,400.00 399,046.58
39 4-Feb Chq. Clg. 'Mehta' CR. 13,900.00 412,946.58
40 2-Mar Instrument no. 110999-R.K BROS.-FED DR. 2,000.00 410,946.58
41 3-Mar Instrument no. 111000-BSNL-SBI DR. 2,349.00 408,597.58
42 6-Mar Instrument no. 111001-TARA CO.-IDBI DR. 5,000.00 403,597.58
43 7-Mar OwnTr./9022000004343/Karnataka CR. 17,700.00 421,297.58
44 16-Mar RTGS/70650999/09:43/Ind. CR. 59,700.00 480,997.58
45 16-Mar RTGS ch.####0000.ST incl. DR. 28.67 480,968.91
46 20-Mar Instrument no. 111002-S.K.HASSAN & CO.-UCO DR. 8,990.00 471,978.91
47 24-Mar Instrument no. 111003-SHARMA-AXIS DR. 12,000.00 459,978.91
48 31-Mar Int. Credit Qtr4Jan-Mar CR. 11,332.34 471,311.25