Prepare a bank reconciliation statement for the given figures.

Question

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Step 1: Start with the balance as per Passbook. The bank's passbook shows a credit balance of Rs. 1,50,000. Step 2: Adjust for items that affect the Cash Book but not yet the Passbook, or vice versa, to arrive at the Cash Book balance. a. Cheque deposited, but yet to be credited by bank Rs. 50,000. The firm recorded this as a deposit in the cash book, increasing its balance. The bank has not yet credited it, so the passbook balance is lower than the cash book. To reconcile from passbook to cash book, this amount is added to the passbook balance. b. Interest on investment credited by bank Rs. 10,000. The bank has credited this interest, increasing the passbook balance. The firm has not yet recorded it in the cash book, so its cash book balance is lower than the passbook. To reconcile from passbook to cash book

Prepare a bank reconciliation statement for the given figures.

Step-by-step solution

Start with the balance as per Passbook.

Adjust for items that affect the Cash Book but not yet the Passbook, or vice versa, to arrive at the Cash Book balance.

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