Students can go through AP Inter 1st Year Accounts Notes 9th Lesson Bank Reconciliation Statement will help students in revising the entire concepts quickly.
Bank Reconciliation Statement Class 11 Notes AP Inter 1st Year Accounts 9th Lesson
→ Bank Reconciliation Statement is a state-ment prepared to reconcile the difference between the balances as per the bank column of the cash book and the pass book on any given date.
→There are certain reasons due to which a difference in the balance of the Pass Book and Cash Book take place. A list of such reasons is given here under:
- Cheques issued by the firm but not presented for payment.
- Cheques deposited into bank but not collected.
- Amount directly deposited in the bank account.
- Bank Charges.
- Interest and dividend received by the bank.
- Direct payments made by the bank on behalf of the customer.
- Cheques/ discounted bills dishonoured.
- Errors committed in recording transactions by the firm.
- Errors committed in recording transactions by the Bank.
→ Different situations for preparing the Bank Reconciliation Statement, these are as follows:
Favourable Balance:
- Debit balance as per cash book is given and the balance as per pass book is to be ascertained.
- Credit balance as per pass book is given and the balance as per cash book is to be ascertained.
Unfavourable Balance / Overdraft Balance :
- Credit balance as per cash book (i.e., overdraft) is given and the debit balance as per Pass Book is to be ascertained.
- Debit balance as per Pass Book (i.e., overdraft) is given and the credit balance as per cash book is to be ascertained.