DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name of the Participant : M. Ramakrishna
Designation : Head of Section
Branch : Commercial & Computer Practice
Institute : Govt. Polytechnic for women Bheemunipatnam
Year/Semester : I Year
Subject : Accountancy-I
Sub-code : CCP-102
Topic Bank Reconciliation Statement
(Overdraft))
Sub Topic : Exercises on Bank Reconciliation Statement

(Overdraft)
Duration : 50 Minutes
Teaching aids : Power Point Presentation
CCP 102.90
 Objectives
At the end of this class, the student available able to:

 Analyze the transactions of bank reconciliation

statement
 Prepare B.R.S from O.D Balance of cash book

CCP 102.90
Recap
We have discussed the preparation of bank
reconciliation statement taking the O.D balance
as per pass book, considering important
transactions

CCP 102.90
Exercise
 Prepare Bank Reconciliation Statement as on
31-12-2006
 Overdraft balance as per cash book Rs. 9,456
 Cheques sent for collection, but not collected
Rs.2,750
 Out of the cheques issued for Rs.3,960, cheques
amounting to Rs.1,800 were not presented for
payment
 Wrong credits in pass book to the extent of Rs.5,536

Overdraft balance as per Pass Book - Rs.4,870

CCP 102.90
 Transactions 1

Cheques sent for collection, but not collected Rs.

2,750/-
Explanation

 When cheques sent for collection, the cash book is

debited, as a result the O.D Balance is lower
 As there is no corresponding entry in pass book, the
O.D Balance in pass book higher
 We have started the reconciliation from cash book
which is lower - ADD

CCP 102.90
 Transactions 2
Out of the cheques issued for Rs.3,960 cheques
amount is to Rs.1800 will not presented for
payment
Explanation
 When cheques issued ,the cash book is credited ,
resulting higher O.D Balance
 As there is no corresponding entry is pass book,
the O.D is lower
 We have started the reconciliation from cash book
– which is higher - LESS

CCP 102.90
 Transactions 3

Wrong credit in pass book to the extent of Rs.5336/-

Explanation
 When wrong credit is given in pass book ,the O.D
balance got reduced
 As there is no similar wrong debit in cash book,the
O.D Balance in cash book is higher
 We have started reconciliation from cash book –
which is higher - LESS

CCP 102.90
Bank reconciliation statement as on
31-12-2006
Rs. Rs.
Overdraft balance as per cash book 9,456
Add
2,750
Cheque sent for collection but not 2,750
collected 12,206

Less
1,800
Cheques issued but not presented 7,336
5,536
wrong credits in pass book
4,870
Overdraft balance as per pass book

CCP 102.90
Assignment

Prepare Bank Reconciliation Statement as on 28-02-2008

2. Overdraft balance as per cash book Rs.4,500
3. Cheques issued but not cashed Rs.750
4. Cheques sent for collection but not collected Rs.600
5. Interest on overdraft Rs.87.50 has been debited in
the pass book only
6. Entry has not been found in the cash book for bank
charges of Rs.25

Overdraft balance as per pass book Rs.4,462.50

CCP 102.90
 Summary
We have prepared a a bank reconciliation statement,
starting with cash book O.D having the following
transactions
b) Cheques issued but not presented
c) Cheques sent for collection, but not collected
d) From credits given

CCP 102.90
 Quiz

When wrong credits given by Banker it

results in
c) Increase in OD balance in pass book.
d) Decrease in OD balance in pass book.
e) None

CCP 102.90