Preparation of BRS without correcting Cash Book

Bank Reconciliation Statement is prepared to compare the balances of cash book and passbook and correct the mistakes recorded in them. The balance of deposits held at the bank is referred to as the debit balance. The same balance becomes the credit balance in the passbook. In some cases, a bank reconciliation statement is prepared firstly by correcting the cash book while generally, instead of correcting the cash book a statement is prepared to record all the rectifications. 

Preparation of Bank Reconciliation Statement:

Case 1: When Debit (Dr.)  Balance of Pass Book is given 

Illustration 1:

From the following particulars prepare a Bank Reconciliation Statement for John Brothers:

1. Dr. Balance as per Pass Book ₹2,20,000

2. Cheques issued but not presented in the bank for payment amounting to ₹1,30,000

3. Cheques deposited in the bank but not yet cleared amounting to ₹80,000

4. Bank charges amount to ₹500

5. Interest credited by the bank amounts to ₹1,500

6. Balance as per Cash Book ₹2,71,000

Solution:

Illustration 2:

On 31st March 2023, the Pass Book of Mr. Jindal showed a Dr. balance of ₹1,30,000, whereas Cash Book showed a balance of ₹1,14,450.

The following differences were identified :

1. Cheques issued amounting to ₹50,000, out of which only ₹22,000 were presented for payment.

2. Cheques amounting to ₹10,000 recorded in the cash book but not deposited in the bank.

3. Interest credited by bank amounting to ₹1,000 and bank charges debited ₹200.

4. Deposited an amount of ₹20,750 in the bank but not recorded in the cash book.

5. Cheques deposited amounting to ₹55,100 have not cleared yet.

Prepare a Bank Reconciliation Statement.

Solution:

Case 2. When Credit (Cr.)  Balance of Pass Book is given:

Illustration 1:

From the following particulars prepare a Bank Reconciliation Statement by taking the balance of pass book into consideration for Jindal Enterprises:

1. Balance as per Pass Book ₹5,00,000

2. Cheques issued but not presented in the bank amounting to ₹1,50,000

3. Cheques deposited in the bank but not yet cleared amounting to ₹80,000

4. Bank charges amount to ₹2,500

5. Interest credited by the bank amounts to ₹1,050

6. Balance as per Cash Book ₹4,31,450

Solution:

Illustration 2:

On 31st March 2023, the Pass Book of Geeks Ltd. showed a balance of ₹ 2,50,000, whereas Cash Book showed a balance of ₹2,13,750.

The following differences were identified:

1. Cheques deposited amounting to ₹ 20,500 have not been cleared yet.

2. Cheques amounting to ₹ 14,900 recorded in the cash book but not deposited in the bank.

3. Interest credited by bank amounting to ₹ 1,050 and bank charges debited ₹350.

4. Deposited an amount of ₹40,950 in the bank but not recorded in the cash book.

5. Cheques issued amounting to ₹65,000, out of which only ₹35,000 were presented for payment.

Prepare a Bank Reconciliation Statement.

Solution: