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  1. This answer was edited.

    Examples of Bank Reconciliation Statement Illustration 1, From the following particulars prepare a Bank Reconciliation Statement on 31st January XXXX Debit Balance as per Cash Book 48,000. Cheque of 37,000 was deposited and collected by the bank but not recorded in Cash Book. Purchased Furniture andRead more

    Examples of Bank Reconciliation Statement

    Illustration 1,

    From the following particulars prepare a Bank Reconciliation Statement on 31st January XXXX

    1. Debit Balance as per Cash Book 48,000.
    2. Cheque of 37,000 was deposited and collected by the bank but not recorded in Cash Book.
    3. Purchased Furniture and payment by the debit card 25,000, was not recorded in Cash Book.
    4. A cash deposit of 26,000 was recorded in the cash column of Cash Book.

     

    Solution:

    Bank Reconciliation from cash book to pass book

    Illustration 2,

    From the following particulars prepare a Bank Reconciliation Statement on 31st October XXXX

    1. Pass Book of Ms Jane shows an overdraft of 50,000.
    2. Cheques issued but not presented for payment to bank 40,000.
    3. Payment side, bank column of Cash Book was undercast by 500.
    4. Interest on overdraft charged by the bank was 1,500.

     

    Solution:

    Bank Reconciliation Statement

    Examples of Cash Book

    Illustration 1,

    DateParticularsAmount
    1st March XXXXCash in Hand2,500
    5th  March XXXXCash paid to Mr Allen1,000
    16th  March XXXXCash Sales1,500
    25th  March XXXXPaid Salary500

     

    Solution:

    Adjustments in the cash book

    Illustration 2,

    Prepare a 2 column cash book

    DateParticularsAmount
    1st Oct XXXXBank Balance52,000
    1st Oct XXXXCash Balance15,000
    4th  Oct XXXXPurchased goods and payment made by cheque15,000
    16th  Oct XXXXSold goods for cash8,000
    25th  Oct XXXXPaid rent by cheque500
    26th  Oct XXXXPurchased goods for cash10,000

     

    Solution:

    Cash Book with both cash and bank columns

     


    Aastha Mehta.

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  1. Yes, the cash book is both a journal and a ledger.  To make the concept simpler, I would like to familiarize you with the meaning of journals and ledgers, which shall help in determining the reasons for a cashbook to be both a journal as well as a ledger. Journal A journal is a descriptive financialRead more

    Yes, the cash book is both a journal and a ledger. 

    To make the concept simpler, I would like to familiarize you with the meaning of journals and ledgers, which shall help in determining the reasons for a cashbook to be both a journal as well as a ledger.

    Journal

    A journal is a descriptive financial record of a business that is used for future reconciling as well as a transfer to other books of accounts such as the ledger. It is a book of original entry.

    Cashbook is considered to be a journal because all the cash/bank receipts and payments are recorded in this book in a descriptive form similar to journal posting.

    Ledger

    In simple words, a ledger refers to recording individual accounts in a summarized form that are posted from a journal. It is a book of principal entry.

    A cashbook is considered to be a ledger because all the cash transactions that are made during a particular financial period are recorded in this book in a chronological order. When a cashbook is prepared there is no need for a cash a/c as the book serves the same purpose and therefore can be used as a substitute.

    Format of a Cashbook

    Cashbook

    DateParticularsV.No.L.F.CashDateParticularsV.No.L.F.Cash
     To Capital a/c    By Advertisement a/c   
     To Sales a/c    By Purchases a/c   
     To Mr. C’s a/c    By Stationery a/c   
     To Bank a/c    By Office expenses a/c   
          By Rent a/c   
          By Salary a/c   
          By balance c/d   
              

    Note: As we can see the format and posting of a cashbook are similar to that of journal and ledger accounts.

    Hope this helps.

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