Loading....
Coupon Accepted Successfully!

 

Summary

  • Bank reconciliation statement is only a statement. It is not a ledger account as prepared on the principles of double entry system
  • Debit Balance as per Cash Book = Credit Balance as per Pass Book
  • Difference between cash book and pass book could be due to timing difference of recording the transaction or due to error in cash book or due to error in pass book.
  • Keeping the cash book as starting point
     
    – Cheques not presented for payment will result in lower cash balance, so add these.
     
    – Cheques not cleared will result in higher cash balance so deduct this.
     
    – Any extra debit in pass book or in cash book will result in higher balance in cash book, so deduct it.
     
    – Any extra credit in pass book or in cash book will result in lower balance in cash book, so add it
  • Keeping pass book as starting point.
     
    – Cheques not presented for payment will result in higher balance in pass book, so deduct it.
     
    – Cheques not cleared will result in lower balance in pass book, so add it.
     
    – Any extra debit in pass book or in cash book will result in lower balance in pass book, so add it.
     
    – Any extra credit in pass book or in cash book will result in higher balance in pass book, so deduct it.




Test Your Skills Now!
Take a Quiz now
Reviewer Name