Question

From the following information, prepare Bank Reconciliation Statement of Sohan as on $31^{st}$ March, 2023:
a. Cash Book showed a debit balance of Rs. 3,72,000.
b. Cheque issued but not yet presented for payment amounted to Rs. 72,000.
c. Dividend received by the bank, but not entered in the Cash Book Rs. 5,000.
d. Interest allowed by the Bank Rs. 1,250.

Hint:

Add any receipts or credits not recorded in the Cash Book and deduct outstanding pay ments when reconciling balances.

Answer 1

Bank Reconciliation Statement of Sohan as on 31^st March, 2023:

Particulars	Add (Rs.)	Less (Rs.)
Debit balance as per Cash Book		3,72,000
Cheque issued but not yet presented	72,000
Dividend received by bank (not entered in Cash Book)	5,000
Interest allowed by bank	1,250
Adjusted Balance as per Bank Statement	\(4,50,250\)

Explanation: 1. Cheques issued but not yet presented for payment increase the Bank Statement balance.
2. Dividend and interest allowed by the bank increase the balance, but these were not recorded in the Cash Book.