Question

Prepare Bank Reconciliation statement of Kumar as on $31^{st}$March, 2024:
a. Pass Book showed a credit balance as on the date Rs. 15,000.
b. Cheques issued but not presented for payment Rs. 4,800.
c. Interest credited by bank amounted to Rs. 150.
d. Bank charges amounted to Rs. 25 were not entered in the Cash Book.

Hint:

Always adjust for unrecorded transactions like bank charges and interest when prepar ing the Bank Reconciliation Statement.

Answer 1

Bank Reconciliation Statement of Kumar as on 31^st March, 2024:

\(Particulars\)	Add (Rs.)	Less (Rs.)
Credit balance as per Pass Book	15,000
Cheque issued but not presented	4,800
Interest credited by bank	150
Bank charges not recorded in Cash Book		25
Adjusted Balance as per Cash Book	19,950

Explanation:

1. Cheques issued but not presented increase the balance in the Pass Book.
2. Interest credited by the bank increases the Pass Book balance.
3. Bank charges reduce the balance.