July 004455 . ü . Cr. July Insurance Premium .
Cr. July Bank charges . . Cr.
July Ruchita Limited . . Cr. Exhibit Solution Step : Tick off the items in both cash book and bank statement ( as shown in Exhibit ).
Step : Updating the cash book from the bank statement . The unticked items on the bank statement indicate items that have not yet been entered in Aqua Products Co.’s cash book. These are : (i) Receipt on July by Ruchita Limited amounting to Rs. .
(ii) Bank charges debited by bank on July amounting to Rs. . These items needs to be entered in the cash book to up date it (refer exhibit – The new entries are shown in darker type). Aqua Products Cash Book (Extract) Dr.
Cr. Receipts Bank Payments Bank July Balance b/d . July Bank charges . July Ruchita Limited .
Jul. Balance c/d . . .
Aug. Balance b/d . Exhibit Step : Balance the cash book bank columns to produce an updated balance. As shown in exhibit , the balance of the bank column stands at Rs.
. . But then a difference is Rs. .
) still exists. Step : Identify the remaining unticked items from the cash book. These are . Receipts on July from Sarin Bros .
. Payments made on July to Verma & Co. . ( Cheque No.
004457 ) . Payments made on July to Mehta Ltd. . ( Cheque No.
004453 ) These above three items will appear in next month’s bank statement as these are due to time gap. These are the items which will appear in the bank reconciliation statement. Aqua Products Co. Bank Reconciliation Statement as on July , Balance at bank as per cash book .
Add Unpresented cheques Verma and Co. . Mehta and Co. .
. . Less Outstanding lodgement