, ) is more than balance as per bank statement Balance as per bank statement ( ` , ) is less than balance as per cash book (d) Interest and dividends collected by the bank The bank may collect dividends on its customer’s investment in shares and also interest on any investment. The entry for this will be made in the bank statement on the date of collection. But the entry is made in the cash book only when the bank statement is received by the customer. Till then, the cash book shows less balance than the bank statement.
For example, the balances as per cash book and bank statement are ` , . The bank has collected dividends of ` , . As a result of this, the balance as per bank statement is increased to ` , , whereas until the customer receives such information and records the same, balance as per cash book is lesser by ` . As a result of this, Balance as per bank statement ( ` , ) is more than balance as per cash book Balance as per cash book ( ` , ) is less than balance as per bank statement (e) Dishonour of cheques and bills When the cheque is received from outside parties, it is deposited with the bank and debited in the cash book.
If the cheque is dishonoured, the bank cannot collect the amount of such cheque from outside parties’ bank. It is not credited in the bank statement. As a result of this, the two records would differ. Accountancy - While discounting the bills receivables, in the cash book it is entered in the debit side and in the bank statement it is credited.
When the bill is presented by the bank to the drawee of the bill and the payment is not received, the bank debits the same to cancel the credit. But, credit is made in the cash book only when the customer gets the entries made in the bank statement is received. The bank may also charge some amount for such dishonour. For example,