Hello everyone, so in this session we will be learning about how to prepare a bank reconciliation statement when we are given balance as per bank statement, normal credit balance and we have to find balance as cashbook. So let's see this example first. Muscles winner Limited is in the business of manufacturing electrical wires balance as per bank statement is to like 30,000 credit on 20th 2019 prepare a bank reconciliation statement and find the balance as per cash. One check deposited but not cleared amounting to rupees 65 Housing second, direct payment of electric city bills of rupees 10,500 by bank but same is not recorded in the books of accounts told fixed deposit along with the interest of rupees one lakh 20,000 matcher and credited and bank statement but not recorded in the books of accounts for dividend receipts of rupees 20,000 credited in bank account but not recorded in the books.

Now, the service format of bank reconciliation statement as on 20th 2019 Now, we will write balance as per bank statement on 20th 2019 balance as per bank statement two lakh 30,000 Now, let's see all the transactions one by one and we will try to calculate the impact of each transaction mentally and we will also be preparing working notes for each transaction first check deposit dead but not cleared amounting to rupees 65,000. So, there was a check of rupees 65,000 which was deposited, but not clear. So, since the check is deposited, it is recorded in our books of accounts. So, that has increased the balance in our books of accounts, but the same is not recorded in the bank statement since the check is not cleared. Now, here we are given the balance as per bank statement. So, we are moving from bank statement or cash book or we can say bank account as book books of accounts.

So, to the extent of 65,000 our banks Statement balance is less as compared to cash flow. So we have to add now let's prepare a working node and understand its impact in detail working not number one, you have cash boo let's assume one leg balance, debit balance and dashboard one lakh credit balance in passbook now that check has been deposited on the debit side of cash boop we have 65,000 since it's not clear there is no entry in the past. So balances for cash Book One lakh 65,000 as for passbook one lakh now we are moving from passbook to cash book so we have to add 65,000 in the bank reconciliation statement, let's add it add a check deposit dead but not clear 65,000 Now, the next transaction to direct payment of electricity bills of rupees 10,500 by a band, but same is not recorded in the books of accounts.

So, there was some direct payment of electricity bills of rupees 10,500 by the bank. So, there is a reduction in the bank balance as per bank statement to that extent, but since it's not recorded in the books are phagon. Our bank balance to that extent is greater than balance as per bank statement. So, we have to add 10,500 in our bank reconciliation statement. Now, let's prepare a working node and find out this impact We have cash both fast. So, one lag debit balance of cash Book One lakh credit balance as far as book.

Now there is a direct payment by the bank so 10,500 on the debit side of passbook same is not entered in our cash balance as for cash Booker's one lakh balance as per passbook is 89 by hundred now we have to move from passbook to cash book. So we had at 10,500 in our bank reconciliation statement, let's add this direct payment by bank not recorded in cash book 10,500. Now let's see the next transaction three fixed deposit along with the interest of the PS one lakh 20,000 matcher and credited in bank statement, but not recorded in the book. So, photons, so, fixed deposit of one lakh 20,000 are credited in the bank statement. So, our balance as per bank statement has increased to that extent, but same is not recorded in the books of accounts. Now, we have to move from bank statement to our cash book.

So, in order to match our bank statement to cash book we have to reduce this one lakh 20,000 in the bank reconciliation statement. Now let's prepare a working mode for this cash one leg Devin balances for cashbook one lakh credit balance as well as book now One lakh 20,000 fixed deposit maturate credited in our past book, but there is no entry in the cash book. So, balance in the cash Book One lakh balance in the past book is two lakh 20,000 we are moving from past book to cash book. So, we have to reduce one lakh 20,000 bank reconciliation statement, let's do that less f d matured and credited in bank statement but not recorded in cashbook one lakh 20,000 Now, the next for dividend receipts of rupees 20,000 credited in bank account but not recorded in the books. So, we have received a dividend and same article edited in the bank account that this bank statement but not recorded in our books of account.

So, to that extent, our bank statement balance is greater than Not cash book. So, since we are moving from bank statement to cash book we have to reduce 20,000 in bank reconciliation statement. Let's prepare a working note for this for cash book passbook one lakh debit cash, one lakh credit balance asper, passbook now dividend of 20,000 receives and credited in the bank statement so 20,000 on the credit side of pass boo, new entry in the cache books balances for cash bukas one lakh balances copass bukas one lakh 20,000 now we are moving from passbook to cash books so we have to read us 20,000 bank reconciliation stay statement. Let's do that. Let's do Intro sealed credited by bank, but not recorded in cash book 20,000. Now, let's complete this bank reconciliation statement and find out what is the balance as per cash book on 20th 2019.

Now, the 65,000 plus 10,500 that the 75 501 lakh 20 plus 20,000. So, we have to reduce one lakh 40,000 So, two lakh 30 plus 75 500 minus one lakh 40,000 that comes to one lakh 65 500 So, this one like 65 500 is balanced as per cashbook So, this was about how to prepare a bank reconciliation statement when we have normal credit balance as bank statement and we have defined the balance ask for cash book as on that particular D