Hello everyone, here we will be solving an example wherein balance as per cash book that is your books of accounts bank account in the books is debit balance, and we will be preparing the bank reconciliation statement and finding the balance as per bank statement. Let's see the example for Mr. Vijay has a business of trading in electrical appliances, bank balance asper cash Lucas bilac 50,000 debit on 31st March 2009. So five lakh 50,000 debit means it's an ordinary balance as per your bank account, prepare bank reconciliation and find a balance as per bank statement. First check of rupees 40,000 issued to Mr Cameron But not present ID for the payment. Second check of rupees 60,000 receipts from muscles make not limited, the same is deposited in the bank but not cleared. Third Bank is charged rupees 1000 and service charges the same are not recorded in the bank account asper books for Mr soul not has deposited to be stratified thousand directly in the bank account, but it does not record it in the books of accounts.

Fifth interest received credited in the bank statement up 7000 but not recorded in the book. So for now, this is a format of bank reconciliation statement bank reconciliation statement as on 31st March 2019. As we had discussed earlier bank reconciliation statement is as on a particular date. are to be specific at a particular point of time. So we have particulars among, among. Now, let's see the first transaction check of rupees 40,000 issued to Mr Gamal, but not present dead for payment.

So, we will be preparing a working nodes to find out what is the effect of this transaction on bank reconciliation statement. Let's flip it to understand the impact of the transaction, we are preparing now working note for transaction number one. So this is our cash book or you can also say bank account as per your books and this is our past book or you can say bank statement. Now, let's assume some balance. Now since that is a debit balance in the cash book, invoking note we will be assuming that by lenses for cash Lucas one lakh and the same balance appears in the passbook one leg. Now this balance any amount you can take, but it's better to take around figure we just want to know the impact of that transaction on guys who can possible that is very we have to take some amount as a balance.

Now, the transaction is check of rupees 40,000 is issued but it is not yet presented for payment. So, check is issued now, this is debit side this is credit side passbook This is debit This is credit 40,000 is issued So, it will be on the credit side of your cash book, but it does not present it for the payment So, it is not appearing in the bank statement or passbook now, if you see after this transaction The balance of Spokane Buddha 60,000 as possible the balances one lakh. Now in bank reconciliation statement, we are bridging the gap between the cash book and the password. Here there's a balance as for cash boo and balance as possible is not given we have to find out. So we are moving from cash to bank. So we have to add 40,000 in bank reconciliation statement.

Let's do that. This is a bank reconciliation statement. First we will be writing the balance balance as a cash book by law. Now we have to add add check issued but not presented for payment 40,000 Next, second check of rupees 60,000 received from muscles make not limited the same is deposited in the bank but not cleared. Now the check has been deposited in the bank so it is recorded in our cash book but same is not cleared so let's prepare one working note for this transaction number two cash fast book let's assume some balance let's take one lakh debit as a casual one lakh credit asper passbook now check the pause dead but not cleared 60,000 so check is deposited in the bank so it will be recorded in the cash book. So 60,000 debit in that cash flow.

Now it does not cleared so it won't appear in our passbook. So, balance as spoke ashbrook is one like 60 balance as possible because now we have to move from cash to passbook. So we have to reduce 60,000 in bank reconciliation statement. So basically, bank reconciliation statement is bridging that gap of balance between the cash book and passbook in this case we are given balance as per cash book and we have to find out balance as possible. That does why we are moving from cash book to pass book. Now let's write this transaction in bank reconciliation statement.

Now, we are to reduce 60,000 So, Less check deposit debt but not clear 60,000 now the next transaction three bank has charged rupees thousand and service charges the same are not recorded in the bank account asper books so bank has charged thousand rupees so it appears in our bank statement or we can call passable but same is not recorded in the cash book that this bank account asper books. Let's prepare a walking note for this. Transaction three cash fast now bandpass Judge 1000 So bankers charge so, it will come on the debit side of passbook, bank charges, but same are not recorded in the cash flow. So, there is no entry for this in the cash flow. So, the balance as for cash because one last balance as past week is 99,000 we have to move from cashbook to possible So, we have to reduce 1000 Let's record this bank charges debated by bank but not recorded in the cash book 1000.

Now, let's see the next transaction for Mr. So not has deposited rupees 25,000 directly in the bank account, but it is not recorded in the books of account. So Mr. So not he has deposited the amount directly in the bank account so it appears in our bank statement. But same is not recorded in our cash book. Or you can say bank account a spa book Let's prepare a walking note for this transaction for cash fast.

Now, there is a direct transfer in our bank account that is direct credit. So it is recorded in the past but seem entry doesn't appear in the book. So for counter cash, so balance as for cash bukas one lab balance as both fast glucose one lakh 25,000 we are moving from cash to passbook. So we are adding 25,000 so let's record this transaction in the bank reconciliation statement. Direct Deposit and bank account not recorded in the cash flow. 25,000 Now, next, the interest received credited in the bank statement to be 7000 but not recorded in the books.

So, we have received some interest has been credited in your bank statement, but the same is not recorded in the cash book. Let's be better walking not for this transaction by cash book possible. Now, interest has been credited in the bank statements on the credit side right 7000 in the past book, casual there is no entry. So balance as for cash brokers on black balances for positive discipline like 7000 so we are moving from cash to passport So, we will be adding 7000 let's write this in our bank reconciliation statement add interest credited by bank not in the cash book 7000. So these were the transactions, which will impact our bank reconciliation statement. Now, let's find out the balance as per bank statement as on 31st March 2019.

So, decide the transactions which are to be added this how to build reduce, so 40,000 25,000 plus 7000 72,000 60,000 plus 1000 61,000, we have to reduce So, by like 50,000 plus 72,000 minus 61,000 that comes to by last 61,000 so this is balance, smoke or bank statement. So this was about the example of bank reconciliation statement. Where in your balance as per cashbook wasn't normal debit balance and we prepared a bank reconciliation statement to find out balance as per bank statement on that particular date.