Accountancy Bank Reconcilisation statement class 11

NCERT Solution for Class 11 Accountancy Chapter 5 – Bank Reconciliation Statement

Bank Reconcilisation statement class 11 taken from NCERT Book Read there is full information About chapter 5 and there is Numerical Question with important Examaples and Answer also is there.

Bank Reconcilisation statement class 11 Intoduction

Bank Reconciliation Statement is a vital financial tool that ensures alignment between a company’s cash records and the bank statement. It serves to identify and rectify discrepancies, such as unrecorded transactions or errors. Through a systematic comparison of the company’s cash book and the bank statement, students gain insight into the importance of maintaining accurate financial records for effective financial management. The BRS process aids in maintaining transparency, allowing businesses to address any discrepancies promptly.

Bank Reconcilisation class 11 Important Notes

1. Purpose:
   • BRS is a critical financial tool used to ensure the accuracy and consistency between a company’s cash records and the bank statement.
2. Components:
   • It involves comparing the entries in the company’s cash book with those in the bank statement, identifying any disparities.
3. Timing Differences:
   • Discrepancies may arise due to timing differences in recording transactions between the company and the bank.
4. Unrecorded Transactions:
   • BRS helps identify unrecorded transactions, such as outstanding checks or deposits in transit.
5. Bank Charges and Interest:
   • Bank charges and interest earned may differ, requiring adjustments for precise reconciliation.
6. Error Identification:
   • Discrepancies may reveal errors in the company’s cash book or the bank statement, prompting corrective actions.
7. Adjustment Entries:
   • Adjustments are made for items like outstanding checks, deposits in transit, and any errors, ensuring accurate reconciliation.

Bank Reconcilisation statement class 11 Format

[School/Institute Logo]

Bank Reconciliation Statement

As of [Month/Year]

particulars	(+)	(-)
Opening Balance as per Cash Book
Add: Deposits in Transit
Less: Outstanding Checks
Adjusted Cash Book Balance
Add: Bank Collections
Less: Bank Charges
Less: NSF (Not Sufficient Funds) Checks
Adjusted Bank Statement Balance
Add: Interest Earned
Less: Unpresented Checks
Closing Balance as per Cash Book
Closing Balance as per Bank Statement

Remarks/Notes

1. The “Adjusted Cash Book Balance” should match the “Adjusted Bank Statement Balance” for reconciliation.
2. Highlight any outstanding items, such as checks or deposits, that have not yet been processed by the bank.
3. Include any additional notes or explanations regarding specific transactions or adjustments.

Bank Reconcilisation statement class 11 Question and Answer

Question:1 what is a bank overdraft ?

Answer : when a firm or an account holder withdraws excess amount over the available bank balance.the account, then, runs a negative bank balance. the negative balance is called a bank overdraft. In other words, bank overdraft is the excess of withdrawals over deposits and is considered a liability to an account holder.

Question:2 Briefly Explain the statement’ wrongly debited by the bank’ with the help of an example.

Answer: The statement “wrongly debited by the bank is alleged when the bank wrongly debits the customer’s account a wrongly debit reduces the account balance of the customer. wrong debits occur when a transaction is wrongly recorded or when incorrect amount is debited from an account such error can occur in the following two cases.

1. a peron has move than one account in bank. a cheque of Rs, 4,000 issued from his/her savings account was wrongly paid through his/her current account.
2. amount of cheques are wrongly recorded. a cheque payment of rs. 60,000 was wrongly debited in the pass book as Rs. 6,000

Question:3 briefly explain the term favourable balance as per cash book.

Answer : Favourable balance is the excess of total of debit side over total of credit side in bank column of a cash book. it is also known as debit balance as per the cash book. in other words. favourable balance means excess of deposits over withdrawlals.

Question:4 Enumerate the steps to ascertain the correct cash book balance.

Answer: Most of the transaction items which normally cause differences between the balance appear only in the pass book. such items are first recorded in the cash book to find the adjusted balance of the cash book and then the bank reconcilisation statement is prepared .the below given steps are involved in the preparation of adjusted cash book.

step:1 The bank balance as per the cash book is noted.

step:2 All the errors committed in the cash book are to be recorded and rectified.

step:3 Transaction present only on the credit side of the pass book needs to be recorded on the debit side of the cash book.

step:4 Transaction present only on the debit side of the pass book needs to be recorded on the credit side of the cash book.

Step:5 Total the cash book and find the balancing figure. this balancing figure is used for preparing the bank reconcilisation statement.

Bank Reconcilisation statement class 11 Numerical Question and Answer

Question:1 From the following particulars, prepare a , bank reconcilisation statement as at March 31, 2014

1. balance as per cash book Rs, 32,00
2. cheque issued but not presented for payment Rs, 1,800
3. cheque deposited but not collected Rs, 2,000
4. bank charges dubited by bank Rs 150

Solution :

Bank Reconcilisation statement as On march 31,2014

S.No	particulars	Amount (+)	Amount (-)
	balance as per the cash book	3,200
1	cheque issued but not presented for payment	1,800
2	cheque deposited but not cleared		2,000
3	bank charges		150
			2,150
	balance as per the pass book (5,000-2,150)
		5,000	5,000

Question:2 on March 31, 2014 the cash book showed a balance of Rs 3,700 as cash at bank, but the bank passbook made up to same date showed that cheques for Rs 700, Rs 300 and Rs 180 respectively had not been credited. prepared a bank reconcilisation statement.

Solution:

S.No	particulars	Amount (+)	Amount (-)
	balance as per the cash book	3,700
1	three cheque issued but not presented for payment (700+300+180)	1,180
2	cheque deposited but not cleared		1,200
	balance as per the pass book (4,880-1200)		3,680
		4,880	4,880

Question:3 The cash book shows a bank balance of Rs 7,800 on comparing the cash book with passbook the following discrepancies were noted.

1. cheque deposited in bank but not credited Rs, 3,000
2. cheque issued but not yet present for payment Rs, 1,500
3. Insurance premium paid by the bank Rs, 2,000
4. bank interest credit by the bank Rs, 400
5. Directly deposited by a customer Rs, 4,000

Answer:

S.No	particulars	Amount (+)	Amount (-)
	balance as per the cash book	7,800
a	cheque deposited but not credited in the pass book		3,000
b	cheque issued but not yet presented for payment	1,500
c	Insurance premium paid by bank		2,000
d	bank interest received	400
e	bank charges		100
f	amount directly deposited by customer	4,000	5100
	balance as per the pass book (13700-5,100)		8,600
		13,700	13,700

Question:4 on comparing the cash book passbook of Naman it is found that on March 31, 2014, bank balance of Rs 40,960 showed by the cash book differs from the bank balance with regard to the following .

1. bank charges Rs 100 on march 31,2014 are not entered in the cash book.
2. on march 21,2014, a debtor paid Rs 2,000 into the company’s bank in settlement of his account, but no entry was made in the cash book of the company in respect of this
3. cheques totaling Rs 12,980 were issued by the company and duly recorded in the cash book before march 31,2014, but had not been presented at the bank for payment until after that date.
4. A bill for Rs, 6,900 discounted with the bank is entered in the cash book with recording the discount charge of Rs 800
5. Rs 3,520 is entered in the cash book as paid into bank on march 31st, 2014 but not credited by the bank until the following day.
6. No entry has been made in the cash book to record the dishonor on march 15,2014 of a cheque for Rs 650 received from bhanu.

Prepare a reconcilisation statement as on march 31,2014

Answer :

Bank Reconcilisation statement of Naman as on march 31,2014

S.No	particulars	Amount (+)	Amount (-)
	balance as per the cash book	40,960
1	bank debited charges		100
2	Amount directly paid by debtor into bank account	2,000
3	cheques issued but not presented for payment	12,980
4	Discount charges of bill was omitted to be recorded in the cash book		800
5	Amount debited in bank column of the cash book but not deposited in bank		3,520
6	cheque dishonoured not recorded in the cash book.		650
			5,070
	balance as per the pass book (55,940-5,070)		50,870
		55,940	55,940

Conclusion

The Bank Reconciliation Statement is a vital tool in ensuring the accuracy of financial records. By reconciling the differences between the cash book and the bank statement, discrepancies like outstanding cheques or deposits in transit are identified. This process aids in maintaining precise financial accounts, offering a clear view of the actual cash position.

Read Also

1. Theory base of Accounting chapter 2
2. Recording of transactions-1 chapter 3
3. Recording of Transaction-2 chapter 4