salary in cash for ` , . He credited this amount in the bank column of cash book. Bank made payment on 23rd December, amounting to ` , , as per standing instruction. But, there is no entry in the cash book for the same.
On 31st, December , Magesh received a bank statement from his bank, which showed a credit balance of ` , . He instructed Dinesh to check the statement with the cash book. On comparing both, Dinesh found that the cash book showed a balance of ` , . He was puzzled.
He needs your help to reconcile the balances. To explore further Are there ways to reduce the number of entries in the bank reconciliation statement? If so, what is to be done? “Ten years from now, there will not be any need to prepare bank reconciliation statement” - Do you agree?
Why? Can the concept of reconciliation be used other than banking transactions? Reference . M C Shukla, T S Grewal and S C Gupta, Advanced Accounts, th ed., , S.Chand Publishing, New Delhi.
. R L Gupta and V K Gupta, Financial Accounting, th ed., , Sultan Chand and Sons, New Delhi. . S P Jain and K L Narang, Advanced Accountancy Vol – I, , Kalyani Publishers, New Delhi.
. Dalston L Cecil and Jenitra L Merwin, Financial Accounting, rd ed., , Learntech Press, Trichy. . Fundamentals of Accounting, , The Institute of Chartered Accountants of India, New Delhi.