From the given details prepare a Bank Reconciliation Statement as on 31st March, 2020:

(a) Bank column of Cash Book shows a Credit Balance of Rs. 5,000.
(b) Bank charges Rs. 200 not entered into Cash Book.
(c) Cheques amounting to Rs. 32,500 deposited but Rs. 28,000 only get cle

Question

From the given details prepare a Bank Reconciliation Statement as on 31st March, 2020:

(a) Bank column of Cash Book shows a Credit Balance of Rs. 5,000.
(b) Bank charges Rs. 200 not entered into Cash Book.
(c) Cheques amounting to Rs. 32,500 deposited but Rs. 28,000 only get cleared.
(d) A Debtor Miss Bhumica paid Rs. 5,500 directly into bank.
(e) Out of cheques issued during March, 2020, Rs. 7,000 was not presented till 31st March, 2020.

**Or**

Distinguish between Purchase Book and Purchase A/c.

Accepted Answer

>

> [!TLDR]
> Beginning with the Cash Book overdraft of Rs. 5,000, adjusting for unpresented cheques (+7,000) and the debtor's direct deposit (+5,500), and deducting bank charges (-200) and uncollected cheques (-4,500), the Pass Book shows a favourable balance of Rs. 2,800.
>
> The Cash Book shows a **credit balance of Rs. 5,000**, which means an **overdraft as per Cash Book** (we start from this negative figure).
>
> **Bank Reconciliation Statement as on 31st March, 2020**
>
> | Particulars | Plus (Rs.) | Minus (Rs.) |
> |---|---|---|
> | Overdraft as per Cash Book (credit balance) | | 5,000 |
> | (e) Cheques issued but not presented for payment | 7,000 | |
> | (d) Amount paid directly into bank by debtor Miss Bhumica | 5,500 | |
> | (b) Bank charges not entered in the Cash Book | | 200 |
> | (c) Cheques deposited but not yet collected (32,500 - 28,000) | | 4,500 |
> | **Totals** | **12,500** | **9,700** |
> | **Balance as per Pass Book (favourable)** = 12,500 - 9,700 | **2,800** | |
>
> **Reasoning for each item:**
> - (e) Cheques issued Rs. 7,000 not yet presented — already deducted in the Cash Book but not yet in the Pass Book, so the Pass Book balance is higher → add.
> - (d) Debtor paid Rs. 5,500 straight into the bank — credited by the bank but not in the Cash Book → add.
> - (b) Bank charges Rs. 200 — debited by the bank, reducing the Pass Book balance → deduct.
> - (c) Of Rs. 32,500 deposited only Rs. 28,000 cleared; Rs. 4,500 not yet collected, so the Pass Book shows that much less → deduct.
>
> Net effect: -5,000 + 12,500 - 4,700 = **+2,800**, a favourable (credit) balance in the Pass Book.
> …

Item	Effect on Cash Book	Journal Entry
Interest credited by bank	Increases bank balance	Debit Bank A/c, Credit Interest A/c
Bank charges debited	Decreases bank balance	Debit Bank Charges A/c, Credit Bank A/c
Direct deposit by customer	Increases bank balance	Debit Bank A/c, Credit Customer's A/c
Cheque dishonoured	Decreases bank balance	Debit Customer's A/c, Credit Bank A/c
Direct payment by bank (e.g., insurance premium)	Decreases bank balance	Debit Expense A/c, Credit Bank A/c

Q.From the given details prepare a Bank Reconciliation Statement as on 31st March, 2020:

Concept understanding — Bank Reconciliation Purpose

The Everyday Intuition

The Precise Meaning

Why It Matters

Accounting Treatment

What gets recorded in the Cash Book?

What about the other items? …

Particulars	Plus (Rs.)	Minus (Rs.)
Overdraft as per Cash Book (credit balance)		5,000
(e) Cheques issued but not presented for payment	7,000
(d) Amount paid directly into bank by debtor Miss Bhumica	5,500
(b) Bank charges not entered in the Cash Book		200
(c) Cheques deposited but not yet collected (32,500 - 28,000)		4,500
Totals	12,500	9,700
Balance as per Pass Book (favourable) = 12,500 - 9,700	2,800

Q.From the given details prepare a Bank Reconciliation Statement as on 31st March, 2020:

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