, , , − , * Note: Since the balance obtained is negative, it is favourable balance. Accountancy - When an extract of cash book and bank statement is given When an extract of the cash book and bank statement is given, the following points are to be remembered: Compare the items in the bank column of the cash book with that of the bank statement Tick the items in the cash book that match with bank statement. Items not matched will be the causes for disagreement Use those causes to prepare bank reconciliation statement Remember, the starting balance in the bank reconciliation statement can be either cash book balance or balance as per bank statement. Illustration (When an extract of cash book and bank statement is given) Given below are the entries in the bank column of the cash book and the bank statement.
Prepare a bank reconciliation statement as on 31st October, . Cash book (Bank column) Cr. Receipts Amount ` Payments Amount ` Oct. Nov.
To Balance b/d To Ram A/c To Sales A/c ( Ravi) To Commission A/c (Kala) To Nirmala A/c To Balance b/d , , , Oct. By Kamala A/c By Magesh A/c By Mala A/c By Salaries A/c By Balance c/d , , , , , , , Accountancy - Bank statement Withdrawals Cr. Deposits Balance Dr./Cr. .
. By Balance b/d To Kamala By Ram By Ravi To Magesh By Kala To Rajan (salaries) By Bills receivable By Interest on Investment To Bills payable , , , , , , 20525 Cr Cr 15468 Cr 15918 Cr Cr Cr Cr 25658 Cr 27478 Cr 23478 Cr Solution Bank reconciliation statement as on 31st October Amount ` Amount ` Balance as per cash book , Add: Bills receivable collected, not entered in cash book , Interest on investment