The following solved illustration will help you understand the preparation of bank reconciliation statement when there is an overdraft. Illustration On March , , Rakesh had on overdraft of Rs. , as shown by his cash book. Cheques amounting to Rs.
, had been paid in by him but were not collected by the bank. He issued cheques of Rs. which were not presented to the bank for payment. There was a debit in his passbook of Rs.
for interest and Rs. for bank charges. Prepare bank reconciliation statement. Solution Bank Reconciliation Statement of Rakesh as on April , (+) (–) Overdraft as per cash book , Cheques deposited but not yet collectedcharged by the bank , Bank charges Cheques issued but not presented for payment Balance as per bank passbook (overdraft) , , , Illustration On March , the bank column of the cash book of Agrawal Traders showed a credit balance of Rs.
, , (Overdraft). On examining of the cash book and the bank statement, it was found that : Cheques received and recorded in the cash book but not sent to the bank of collection Rs. , . Payment received from a customer directly by the bank Rs.
, but no entry was made in the cash book. Cheques issued for Rs. , , not presented for payment. Interest of Rs.
, charged by the bank was not entered in the cash book. Prepare bank reconciliation statement. Solution Bank Reconciliation Statement of Agarwal Traders as on March , (+) (–) Overdraft as per cash book , , Cheques received and recorded in the cash book but not , sent to the bank for collection Interest on bank overdraft debited by the bank but not , entered in the cash book Payment received from the customer directly , Credited in the bank a/c but not entered in the cash book , , . Cheques issued but not presented for payment .
Balance as per the passbook (favourable balance) , , , , , Illustration From the following particulars of Asha