Now here we will be seeing an example wherein the balance as per bank statement is overdraft balance or debit balance and we have to prepare a bank reconciliation statement and find balances but cash. Let's see the example first muscle Spooner Ltd is in the business of manufacturing catch up balance as per bank statement as to like 50,000 debit that is overdraft as on 31st jan 2019 prepared bank reconciliation statement and find balance as per cashbook first check issued but not presented for payment amounting to rupees 75,002nd direct payment of rent of rupees 25,000 by bank, but same is not recorded in the books of accounts toward interest of rupees 5500 debited by bank, but not recorded in the books of accounts for dividend receipts of rupees 20,000 credited in the bank account, but not recorded in the books of accounts. Now, bank reconciliation statement as on 31st Jan 2019, we have particulars among among first will write, balance as per bank statement overdraft two lakh 50,001st check issued but not presented for payment amounting rupees 75,000.

Now, the check has been issued. So, it is recorded in our cash book, but same is not presented for the payment So, it's not recorded in the bank statement. Since It's issued check recorded in the cash book or order balance in the cash book will be increased to that extent. But, same is not recorded in the bank statements or odd balance as per bank statement will be less to the extent of 75,000. Now, we are moving from bank statement to our cash book. So, we have to add check issued but not presented for payment.

Let's prepare working not for this one cash pass. Now, since this is all about balance, it is credit balances for cash book and debit balance as possible. Now jack issued so it is recorded in the books Off accounts, but same is not present. It's not recorded in the past book. So balance as both cash is like 75,000 balances purpose Booker's one lakh. Now here we are moving from passbook to cash book.

So we have to add 75,000 in our bank reconciliation statement let's do this ad check issued but not presented for payments 75,002nd direct payment of rent of rupees 25,000 by bank, but the same is not recorded in the books of accounts. So, there was a direct payment of rent by the bank. So, this 25,000 must have been credited in our bank statement. So, this must have increased or drop balanced by 25,000. But scenes the same is not recorded in the books of accounts. Order balance as possible.

Africa would be less to the extent of 25,000. Now here we are moving from bank statement to our cash book. So we have to reduce the amount of 25,000 bank reconciliation statement. Let's prepare the working mode for this second cash book fast Book One lakh credit as the cash boop one lead debit as possible. Now, there is some direct payment by the bank so on the debit side of passbook 25,000. It's not recorded in the cash flow.

So balances for cash book is one lakh balance as the passbook is one lakh 25,000 we are moving from passbook to cash boo So we had to reduce 25,000 in the bank reconciliation statement. Let's do this. Let's direct rent payment by bank not recorded in the books of accounts 25,000 next interest of rupees 5500 debited by bank but not recorded in the books of accounts. Again there is some interest which has been debated by the bank. So, our order balance to that extent has increased but the same is not recorded in the books of accounts. So, to that extent our order balance in the books are for counselors less here we are moving from bank statement to our cash book.

So, we have to reduce this in our bank reconciliation statement. Let's prepare walking not for this three Boo passbook one lakh on credit side of cash booth one lakh on debit Seidel passbook. Now, there are some bank interest which is debated by bank amounting to 5500. So, in the past book 5500 new entry in the cash book balance so, cash with one lakh balance as per passbook is one lakh 5500 we are moving from passbook to cash book. So we had to reduce 5500 in bank reconciliation statement. Let's do this.

Less bank interest debated by bank but not recorded in cashbook why thousand 500 next fourth dividend receipts of rupees 20,000 credited in bank account, but not recorded in the books. Now there are some dividend receipts Which are credited in a bank account. So, to that extent our bank order balance would have reduced but same are not recorded in the books of accounts. So, the books of accounts overdraft balance is greater the extent of 20,000 as compared to your bank statement. So, in the bank reconciliation statement we have to add 20,000 Now let's prepare the working mode for this foot cash fast book, one leg credit, side of cash book, one leg debit side of passbook. Now there is dividend receipts on the credit side of possible right 20,000.

There is no entry in the cash book balances for cash Booker's one lakh balance as per bazookas 80,000. So we have to move from passbook to cash whoops we had to add 20,000 in our bank reconciliation statement. Let's do this add dividend receipts credited in the bank statement but not recorded in the cash book 20,000. Now this was the last transaction now let's take the total and find out balance as per cash book. So this is 95,000 this 30,500 less so boulat, 50,000 plus 95,000 minus 30,500 is 314 by hundred so this is bad islands as well. Gosh.

So, since we had started with the positive balance as per bank statement desorb draft and once we are getting a positive balance as the cash boo, it does have overdraft balance. Now this was an example wherein we had a balance as per bank statement, which was overdraft or debit balance and we had prepared a bank reconciliation statement to find balance as gospel