Bank charges , CR Aug. Surya Finance (SO) , , CR Exhibit Name of business.......... Bank Reconciliation Statement as at .......... Balance at bank as per cash book ..........
Add : unpresented cheque(s) .......... Less : outstanding lodgement(s) not yet entered on bank statement Balance at bank as per bank statement .......... Note : show the working clearly and step-wise Test your Understanding - III State whether each of the following statements is True or False Passbook is the statement of account of the customer maintained by the bank. A business firm periodically prepares a bank reconciliation statement to reconcile the bank balance as per the cash book with the passbook as these two show different balances for various reasons.
Cheques issued but not presented for payment will reduce the balance as per the passbook. Cheques deposited but not collected will result in increasing the balance of the cash book when compared to passbook. Overdraft as per the passbook is less than the overdraft as per cash book when there are cheques deposited but not collected by the banker. .
The debit balance of the bank account as per the cash book should be equal to the credit balance of the account of the business in the books of the bank. . Favourable bank balance as per the cash book will be less than the bank passbook balance when there are unpresented cheques for payment. .
Direct collections received by the bank on behalf of the customers would increase the balance as per the bank passbook when compared to the balance as per the cash book. . When payments made by the bank as per the standing instructions of the customer, the balance in the passbook will be more when compared to the cash book. Key Terms Introduced in the Chapter Cash book and Passbook Summary with Reference to Learning Objectives Bank Reconciliation Statement : A statement prepared to reconcile the bank balance as per cash book with the balance as per passbook or bank statement, by showing the items of difference between the two