Prepare a Bank Reconciliation Statement as on 30th Magh given: cash book shows a credit (overdraft) balance of Rs. 50,000; cheques of Rs. 8,000 deposited but bank credited Rs. 6,000 only; a customer directly deposited Rs. 12,000 into bank not recorded in cash book; bank charges Rs. 300 debited only in pass book; a cheque of Rs. 4,000 issued but not presented; interest on investment Rs. 1,000 received but not recorded in the bank.

What a bank reconciliation is doing here

You have two records of the same bank account, the cash book (your books) and the pass book (bank’s books). Timing differences and bank-only entries cause the balances to disagree, so we adjust one balance to reach the other.

Step 1: Identify the starting balance

Cash book shows a credit balance of Rs. 50,000, which means an overdraft.

So, start with:

• Overdraft as per cash book = Rs. 50,000

Step 2: Decide which items increase or decrease the overdraft (from cash book to pass book)

Starting from cash book overdraft:

Add (makes pass book overdraft more than cash book):

• Cheques deposited Rs. 8,000 but bank credited Rs. 6,000 only, difference $= 8{,}000 - 6{,}000 = 2{,}000$ (bank credited less, so pass book is worse by Rs. 2,000)
• Bank charges debited by bank only = Rs. 300
• Interest on investment received but not recorded in bank = Rs. 1,000 (cash book is higher, pass book is lower)

Less (makes pass book overdraft less than cash book):

• Customer directly deposited in bank (not in cash book) = Rs. 12,000
• Cheque issued but not yet presented for payment = Rs. 4,000

Bank Reconciliation Statement (as on 30th Magh)

(Starting with overdraft as per cash book)

Overdraft as per cash book (credit balance) = Rs. 50,000

Add:

• Short credit on cheques deposited = Rs. 2,000
• Bank charges (not in cash book) = Rs. 300
• Interest on investment not credited by bank = Rs. 1,000

Total additions = Rs. 3,300

Adjusted overdraft = Rs. $50{,}000 + 3{,}300 = 53{,}300$

Less:

• Direct deposit by customer (not in cash book) = Rs. 12,000
• Cheque issued but not presented = Rs. 4,000

Total deductions = Rs. 16,000

Overdraft as per pass book = Rs. $53{,}300 - 16{,}000 = 37{,}300$

Quick check

The computed pass book overdraft is Rs. 37,300, which matches the required figure.