, Illustration Rony is the proprietor of Veena photos. The bank column of cash account of his business was balanced on 31st March . It showed an overdraft of ` , . The bank statement of Veena photos showed a credit balance of ` , .
Prepare a bank reconciliation statement taking the following into account. (a) The bank had directly collected dividend ` , but was not entered in the cash book. (b) Cheques amounting to ` , were issued on 27th March, , of which, cheques amounting to ` , were not presented for payment before 31st March . (c) Cheque book charges of ` debited by the bank but not recorded in cash book.
(d) Bank locker rent of ` , debited by the bank but not recorded in cash book. Solution Bank reconciliation statement of Veena photos as on 31st March, Amount ` Amount ` Overdraft as per cash book Add: Cheque book charges not recorded in cash book Bank locker charges debited by bank Less: Dividend directly collected by the bank Cheque issued but not yet presented for payment , , , , , , , Favourable balance as per bank statement* − , *Note: Since the balance obtained is negative, it is favourable balance. Accountancy - Illustration (When balance as per bank statement is favourable) Prepare bank reconciliation statement as on 31st December, from the following information: (a) Balance as per bank statement (pass book) is ` , (b) No record has been made in the cash book for a dishonour of a cheque for ` (c) Cheques deposited into bank amounting to ` , were not yet collected (d) Bank charges of ` have not been entered in the cash book. (e) Cheques issued amounting to ` , have not been presented for payment Solution Bank reconciliation statement as on 31st December, Amount ` Amount ` Balance as per bank statement Add: Dishonour of a cheque Cheques deposited into bank , but not yet collected Bank charges not entered in