To create a Bank Reconciliation Statement for June 30, 2004, one must adjust the passbook balance by considering cheques not presented, omitted entries, undercast errors, bank charges debited, and direct deposits not recorded in the cash book. The adjusted balance shows the actual funds available.
To prepare a Bank Reconciliation Statement as of June 30, 2004, with a given balance as per passbook of Rs.600, adjustments should be made for the following items:
Cheques drawn but not presented for payment totaling Rs.4,000 should be subtracted from the bank balance.
Cheques issued but omitted from the cash book amounting to Rs.50 should be added to the bank balance.
Cheques paid into the bank but not recorded in the cash book totaling the same amount should be added to the bank balance.
The undercast on the payment side of the cash book of Rs.640 should be subtracted from the bank balance.
Bank charges of Rs.35 debited by the bank should be deducted from the bank balance.
Rs.500 received directly by the bank from a customer, not recorded in the cash book, should be added to the bank balance.
The adjusted bank balance would then reflect the true amount of funds available in the account.
The probable question may be:
Prepare a Bank Reconciliation Statement from the following:
a. Balance as per pass book on 30 June, 2004 Rs.600
b. Cheques drawn but not presented for payment amounting to Rs.4,000
C. Cheques issued but omitted to be recorded in the cash book amounting to Rs.50
d. Cheques paid into bank but omitted to be recorded in the cash book amounting The payment side of the cash book under cast by Rs.640
e. The payment side of the cash book under cast by Rs.640
f. Bank gave the debit of Rs.35 for sundry charges
g. Bank received directly from the customer Rs.500 not recorded in the cash book.