Bank Reconciliation Statement Problems and Solutions

 

Bank Reconciliation Statement Problems PDF Download

 Problem 1:

From the following particulars prepare a Bank Reconciliation Statement to find out the causes of difference in two balances as on August 31st, 2016 for Four Star (Pvt.) Ltd.

(i) Bank Overdraft as per Bank Statement ……………………………………….………. 17,000

(ii) Check issued but not encashed during the August ………………………………….. 2,200

(iii) Dividends on shares collected by banker …………………………….…………….… 2,300

(iv) Interest charged by the bank recorded twice in the Cash Book ……………..……. 500

(v) Check deposited as per Bank Statement not entered in Cash Book ……….…..… 3,400

(vi) Credit side of the Bank column in Cash Book cast short ……………….…………… 1,000

(vii) Clubs dues paid by bank as per standing instruction not recorded in Cash Book … 1,200

(viii) Uncredited check due to outstation ………………………………………………….   3,900

 

Solution:

bank reconciliation statement problems and solutions

 

>> Practice by using Bank Reconciliation Statement Format.




 

Problem 2:

From the following particulars, you are required to find out the errors in cash book and bank statement by using missing method and prepare Bank Reconciliation Statement as on 31-12-2016, for Chand Bibi Ltd:

(i) Bank balance overdraft as per cash book …………………………………………………….. 80,000

(ii) Check recorded for collection but not sent to the bank   ………………..………………… 10,000

(iii) Credit side of the cash book cast short ………………………………………………………… 1,000

(iv) Premium on proprietor’s Life Insurance Policy (LIP) paid on standing order ……………..…5,000

(v) Bank Charges recorded twice in the cash book …………………………………………………… 100

(vi) Customer’s check returned by the bank as dishonored ………………………………………. 4,000

(vii) Bill Receivable collected by the bank directly on the behalf of company ……………………. 20,000

(viii) Check received entered twice in the cash book ………………………………………………….. 6,000

(ix) Check issued but dishonored on technical grounds ………………………………………………. 3,000

(x) A checks deposited into the bank of worth Rs. 45,000 but Rs. 8,000 check was not collected by bank

 

Solution:

bank reconciliation statement

 

>> Study Bank Reconciliation Statement theory related questions and answers.



 

Problem 3:

From the following particulars, find out the errors in cash book and bank statement and prepare Bank Reconciliation Statement as on 31-05-2016 for Ammar Ahmed Sugar Mill Ltd:

i. Balance as per bank statement overdraft of Rs. 2,118.

ii. The debit side of the cash book had been undercast by Rs. 300.

iii. A check for Rs. 182 drawn for the payment of telephone bill had been entered in the cash book as Rs. 281 but was shown correctly in the bank statement.

iv. A check for Rs. 210 by the customer having been deposited into bank was dishonored by the bankA check was credited twice in Cash Book for worth Rs. 3,000.

v. A Dividend of worth Rs. 90 had been collected by the bank but not recorded in the cash book.

vi. Checks Rs. 3,000 drawn in December but only 1,200 presented for payment.

vii. Interest amounting 228 had been debited by the bank but not entered in the cash book.

viii. A check for Rs. 2,077 was issued by the company for purchase of merchandise and was paid by the bank but not recorded in company’s book.

ix. A check for Rs. 10,500 issued to Salman & Co. for purchase of Equipment was not encashed.

 

Solution:

bank reconciliation

 

>> You must have understanding of  Cash Book in order to understand Bank Reconciliation Problems and Solution.

Problem 4:

Prepare Bank Reconciliation Statement for the month of December, 2007 by missing method using T accounts (for cash book and for bank statement) and Reconciliation Statement:

The cash book of M/S Universal Trading Company shows a cash book balance of Rs. 102,568 in Soneri bank Ltd. as of 31-12-2007. In January, 2008 the firm received a bank statement for the month of December, 2007 showing a credit balance of Rs. 118,068. Comparison of bank statement with the cash revealed the following anomalies

i. Check issued totaling Rs. 115,250 recorded in cash book but not appeared in the bank statement.

ii. Check received from customers amounting to Rs. 75,850 deposited and properly accounted for in the cash book was not credited by bank.

iii. Check received from the following customers were returned unpaid by the bank.

iv. Check from Ghazi Autos received on 5-12-2007 for Rs. 1,200.

v. Check from Rahil Bros. received on 20-12-2007 for Rs. 18,500.

vi. Check form Akmal Sons was received on 27-12-2007 for Rs. 2,000.

vii. Excise duty debited by bank Rs. 200.

viii. Bank charges debited by bank Rs. 1,200.

ix. Charged commission on collection of outstation check by bank of worth Rs. 800.

 

Solution:

what is bank reconciliation statement

 

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