FA1 Recording Financial transaction

Bank Reconciliation Statement

Problem 6.1: Comparison of the cash book entries with that of the bank statement entries, by the accountant
of Khalid Trading Co. revealed the following differences:
(i) Balance per cash book 12000
(ii) Balance per bank statement 37000
(iii) Cheques for Rs.15000 deposited but not shown in Bank statement
(iv) Cheques for Rs,32000 issued but not presented at the bank
(v) Direct deposit of Rs.8000 into the bank by a customer
(vi) Dishonoured cheque amounted to Rs.1500
(vii) Bank service charges Rs.500
(vii) Profit credited by the bank Rs.2000

Required: Prepare a Bank Reconciliation Statement on December 31, 2019

Problem 6.2: Prepare bank reconciliation statement from the following information as on Dec 31, 2019 of
Anas Brothers.
(i) Balance as per cash book 35000
(ii) Balance as per Bank statement 26000
(iii) Shahid & Co. Cheque was bounced 21250
(iv) Un-cleared cheque 11950
(v) Cash deposited on Dec 31, 2019 not shown at bank statement 10000
(vi) Collection of notes Receivable not recorded in cash book 6000
(vii) Direct deposit by a customer not recorded in cash book 6000
(viii) Un-presented cheques 21950
(ix) Collection charges debited by bank but not recorded in cash book 30
(x) Mark up credited by bank but not recorded in cash book 280

Problem 6.3: A study of cash record and bank statement for Naeem Traders for the month of April, 2019
revealed the following information:
(i) Balance as per cash book 22500
(ii) Balance as per Bank statement ???
(iii) April 30 deposit not shown in the bank statement 5000
(iv) Cheques issued but not presented for payments 7000
(v) Cheque deposited by a customer directly in the firm’s bank
account which was not recorded in the firm’s cash book 6000
(vi) Collection charges not recorded in the cash book 500
(vii) The bank had credited the firm’s account for mark up which
was not recorded in cash book 4000
(viii) A customer’s cheque was dishonoured by bank 7000

Required: Prepare the Bank Reconciliation statement on April 30. 2019.

Prepared by: Amir Iqbal Page 1

 FA1 Recording Financial transaction

Problem 6.4: On comparison of the cash book (Bank column) with its bank statement of Aslam traders for the
month of July, 2019 revealed the following:
(i) Balance as per bank statement on July 31, 2019 was 57000
(ii) Balance as per Cash book on July 31, 2019 was ???
(iii) Cheques issued during July 2019 but not presented 15000
(iv) Bank charges not entered in cash book 500
(v) Locker rent debited by bank not recorded in cash book 3500
(vi)Withholding Tax debited by bank not recorded in cash book 150
(vii) Cheques deposited on July 30, 2019 not shown in bank statement 5000
(viii) Direct deposit by a customer 6650
(ix) Profit was credit for by the bank 1500

Required: Prepare the Bank Reconciliation statement on July 31, 2019.

Problem 6.5: A comparison of the cash book of Rizwan Corporation with its bank statement for January, 2019
revealed the following:
(i) Balance as per cash book Rs.24000
(ii) Balance as per bank statement Rs.9000
(iii) Late deposit not shown in bank statement Rs.8000
(iv) Outstanding cheque for Rs. ????
(v) Direct deposit by a customer not recorded in cash book Rs.3000
(vi) Dishonoured cheque for Rs.14000
(vii) Profit credited by the bank, not recorded in cash book Rs.2000
(viii) Withholding tax debited by bank not entered in cash book Rs.200

Required: Prepare a Bank Reconciliation statement on January 31, 2019.

Problem 6.6: On December 31, 2019 the cash book for Karim Co. showed a debit balance (Bank column) of
Rs.12500. On this date balance as per bank statement was Rs.13426. The following items of disagreement
were discovered:-
(i) The bank debited the account for bank charges amounting to Rs.15. Likewise the bank paid Rs.100 for
insurance premium on behalf of Karim co. but it was not recorded in the cash book
(ii) Cheques were deposited totalling Rs.4000 but cheques totalling Rs.3000 only were cleared.
(iii) Cheques totalling Rs.5000 were issued but cheques totalling Rs.3000 only were presented to the bank.
(iv) The bank credited the account by Rs.50 for interest. This was not recorded in the cash book.
(v) A cheque for Rs.266 issued to Saleem Sons was presented and paid but it was wrongly recorded in the cash
book as for Rs.257.

Required: Prepare the Bank Reconciliation statement on December 31, 2019.

Prepared by: Amir Iqbal Page 2

 FA1 Recording Financial transaction

Problem 6.7: A comparison of cash book and bank statement of Ather & Co revealed the following
information:
i) Cheques deposit of Rs.16000 but not shown in bank statement.
ii) Cheque issued of Rs.20000 but not presented at the bank
iii) Direct deposit by customer Rs.14000 in bank
iv) Dishonoured cheque Rs.8500
v) Bank service charges Rs.1000
vi) Mark up credited by bank Rs.500
vii) A cheque for Rs.4050 issued to supplier was wrongly recorded in cash book as Rs.40500
viii) A cheque for Rs.25700 was deposited to bank entered in the company’s record as 27500

Required: A schedule of added to and deducted from cash book balance.

Problem 6.8: Following is a bank reconciliation statement prepare from the cash record of Yasir & Co.
Bank Reconciliation statement as On March 31,2019
Balance as per cash book 98000 98,000
Add: Outstanding cheque Rs 8,000
Profit on deposit Rs 4,000
Direct Deposit Rs 10,000 Rs22,000
Rs 120,000
Less: Deposit in transit Rs 34,000 34,000
Bank charges (Rs 2,000)
Dishonoured cheque (Rs 18,.000) Rs(54,000)
Balance as per bank statement Rs66,000

Required: Revise the bank reconciliation showing adjusted balance

Problem 6.9: On Jan 31, 2019 the cash book for Zaheer co. showed a bank balance of Rs.5750 and Bank
statement showed a debit balance (overdraft) of Rs.3500. On comparing two records the following differences
were revealed:
(i) A Cheque for Rs.16500 was deposited into the bank but not shown in the bank statement.
(ii) A Cheque drawn for RS.6000 was entered in cash book but not presented at the bank for payment.
(iii) Accompanying the bank statement a cheque for Rs.150 was returned unpaid.
(iv) Rs.1500 being the proceeds of a cheque collected, appeared in the bank statement.
(v) Bank charges of Rs.15 and interest on overdrafts Rs.85 appeared in, the bank statement.

Required: Prepare a Bank Reconciliation statement on Jan 31, 2019.

Prepared by: Amir Iqbal Page 3

 FA1 Recording Financial transaction

Problem 6.10: Comparison of cash book and Bank statement of Tariq Bros., a sole trader, reveals the following
for the month of April 2019.
1. Balance as per cash book (Debit balance) Rs.17000 and as per bank statement (Debit balance)
Rs.23000.
2. Direct deposit by a customer Rs ????
3. A cheque for Rs.18000 issued in settlement of an account payable was recorded in the cash book as for
Rs.13000.
4. Un-cleared cheque Rs.37000
5. Unpaid cheque Rs.7000.
6. Bank made direct payment of an outstanding electricity bill of business Rs.10000.

Required: Prepare a Bank Reconciliation statement on April 30, 2019.

Problem 6.11: A comparison of cash records for Noman Khan Traders with the bank statement for the month
of December 2019 revealed the following information:
(i) Cash book balance (Dr.) on December 31, 2019 was 5650.
(ii) Bank statement balance (Dr.) overdraft on December 31, 2019 was Rs.8780
(iii) Mark up charged by bank Rs.500 was not recorded in the cash book.
(iv) Service charges levied by the bank not recorded in the cash book Rs.150
(v) A cheque for Rs.9500 deposited into bank was wrongly entered into the bank statement as for Rs.5900
(vi) Cheques outstanding Rs.5820
(vii) The Deposit of Rs.16000 on December 31, 2019 not shown on the bank statement.
(viii) Bank statement showed a direct deposit of Rs.1500 by a customer not recorded in the cash book.
(ix) Accompanying the bank statement was a customer’s cheque for Rs.1200 which was returned unpaid by
bank.
(x) A cheque for Rs.800 issued in settlement of an account payable was erroneously entered into cash book as
for Rs.500.

Required: Prepare a Bank Reconciliation Statement on December 31, 2019

Prepared by: Amir Iqbal Page 4