On 31st March 2024, the Cash Book (Bank Column) of a trader showed a debit balance of ₹15,000. On comparing it with the Pass Book, the following differences were found:
(a) Cheques of ₹3,200 issued to creditors but not yet presented for payment.
(b) Cheques of ₹2,500 deposited in

Question

On 31st March 2024, the Cash Book (Bank Column) of a trader showed a debit balance of ₹15,000. On comparing it with the Pass Book, the following differences were found:
(a) Cheques of ₹3,200 issued to creditors but not yet presented for payment.
(b) Cheques of ₹2,500 deposited into the bank but not yet collected.
(c) Bank charges of ₹150 debited by the bank, not yet entered in the Cash Book.
(d) Interest of ₹400 allowed by the bank, not yet entered in the Cash Book.
(e) A cheque of ₹1,000 deposited into the bank was dishonoured; no entry for this was passed in the Cash Book.
Prepare a Bank Reconciliation Statement as on 31st March 2024, taking the balance as per Cash Book as the starting point.

Accepted Answer

**Bank Reconciliation Statement as on 31st March 2024** *(starting from the balance as per Cash Book)*

| Particulars | Amount (+) ₹ | Amount (−) ₹ |
|---|---:|---:|
| Balance as per Cash Book | 15,000 | |
| Add: Cheques issued but not yet presented for payment | 3,200 | |
| Add: Interest allowed by the bank, not yet entered in Cash Book | 400 | |
| Less: Cheques deposited into the bank but not yet collected | | 2,500 |
| Less: Bank charges debited by the bank, not yet entered in Cash Book | | 150 |
| Less: Cheque deposited, now dishonoured, not yet entered in Cash Book | | 1,000 |
| **Total** | **18,600** | **3,650** |
| **Balance as per Pass Book (18,600 − 3,650)** | **14,950** | |

**Reasoning for each item:**
- (a) The Cash Book has already been credited (reduced) for the cheques issued, but since they have not been presented, the bank has not yet paid them out — the Pass Book is still higher by ₹3,200, so it is added.
- (b) The Cash Book has already been debited (increased) on deposit, but the bank has not yet collected the cheques — the Pass Book does not yet include this ₹2,500, so it is subtracted.
- (c) The bank has already deducted its charges in the Pass Book; the Cash Book has not — subtract ₹150.
- (d) The bank has already credited this interest in the Pass Book; the Cash Book has not — add ₹400.
- (e) The bank has already reversed the earlier credit for the dishonoured cheque in the Pass Book; the Cash Book has not — subtract ₹1,000.

**Check:** 15,000 + 3,200 + 400 = 18,600; 18,600 − (2,500 + 150 + 1,000) = 18,600 − 3,650 = 14,950. Independently verified by re-adding each column separately.

> [!ANSWER]
> Balance as per Pass Book as on 31st March 2024 = ₹14,950 (a Credit/favourable balance).

Q.On 31st March 2024, the Cash Book (Bank Column) of a trader showed a debit balance of ₹15,000. On comparing it with the Pass Book, the following differences were found:

Concept understanding — Preparation of the Bank Reconciliation Statement

Particulars	Amount (+) ₹	Amount (−) ₹
Balance as per Cash Book	15,000
Add: Cheques issued but not yet presented for payment	3,200
Add: Interest allowed by the bank, not yet entered in Cash Book	400
Less: Cheques deposited into the bank but not yet collected		2,500
Less: Bank charges debited by the bank, not yet entered in Cash Book		150
Less: Cheque deposited, now dishonoured, not yet entered in Cash Book		1,000
Total	18,600	3,650
Balance as per Pass Book (18,600 − 3,650)	14,950

Q.On 31st March 2024, the Cash Book (Bank Column) of a trader showed a debit balance of ₹15,000. On comparing it with the Pass Book, the following differences were found:

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