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Rajeev & Co. Bank Reconciliation Statement Situation Ravi Kumar works as a cashier for Rajeev & Co. His responsibilities include recording and maintainingthe firm's cash book and preparing a bankreconciliation statements at the end of the month. The firm's cash book for July 2018 which Ravi has just completed recording and balacing for the mohnth end is shown below ( Note: For the sake of clarity the cash columnhas been omitted.) A copy of the firm's bank statement from the HDFC Bank Ltd.for the month ofJuly has just been received and is also illustrated. The numericaldifference between the two is : Bank statement balance ₹20,030 minus cash book balance₹17,420=₹2,610 This is the difference which Ravi will have to 'reconcile'. To Reconcile the Cash Book with the Bank Pass Book following four steps are taken in practical. |
Answer» SOLUTION :Step 1. Tick the ITEMS in both Cash Bookand Bank Statement.  Step 2: The unticked i.e., deposit of ₹ 1,790 and bank charges of ₹ 120 will be accounted in the Cash Book :  The balance of bank column now stand at ₹ 19,090, which differs from bank STATEMENTS balance of ₹ 20,030. This remaining difference is dealt with in the Bank Reconciliation Statements. Step:3 Identify the remaining unticked items from the cash book. These are : `{:("Receipts July31 Piyush Bros. ₹630",|," Payment","July 2"," Bittoo & Co. (CHEQUE no. 004451)","₹ 1,300"),(,|,,"July 8","Maninder Ltd. (cheque no. 004453)","₹ 270"):}` These items should appear on NEXT month's bank statement as they are because of timing differences. These are the item which willappear in the Bank Reconciliation Statement . Step. : Preparation of the Bank Reconciliation Statement 
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