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CBSE Class 11-commerce Answered

 Question. Cheques amounting to rs8,000 drawan on 25th march of which cheques if rs5,000 cashed in april, 2019
Asked by Bhageshmogra | 25 Sep, 2019, 01:05: AM
answered-by-expert Expert Answer
The transaction mentioned is from the Chapter Bank Reconciliation Statement. To give the treatment in a Bank Reconciliation Statement, it is important to first identify the starting point/balance of the Bank Reconciliation Statement which is not provided in the details. 
 
Following are the steps to be followed for preparing a Bank Reconciliation Statement:
  1. The date on which a BRS is prepared.
  2. The cash balance or pass book balance is considered as a basis of bank reconciliation i.e. if the starting point is a cash book balance, then the ending point will be the balance as per cash book. Similarly, if the starting point is a pass book balance, then the ending point will be the balance as per the pass book.
  3. A debit balance in cash book or a credit balance in pass book indicates that the account has cash deposited in it. This amount can be treated as an asset of the firm and can be called favourable balance noted under the plus items.
  4. Credit balance as per cash book or debit balance as per pass book means overdraft i.e. withdrawal of cash has been in excess that that of the deposits made. It is treated as a liability and is called unfavourable balance noted under the minus items.
  5. Cash book balance increases by debiting an item to the cash book while it decreases by crediting an item to the cash book.
  6. Pass book balance decreases or overdraft increases by debiting an item to the bank pass book while pass book balance increases or overdraft decreases by crediting an item to the pass book.
Also following link can be referred on our website for text book solutions that will help in solving similar problems:
https://www.topperlearning.com/study/cbse/class-11-commerce/accountancy/text-book-solutions/financial-accounting/571/bank-reconciliation-statement/2908/b101c503s549e9
 
 
Answered by Surabhi Gawade | 25 Sep, 2019, 09:24: AM
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