His bank statement shows an overdraft balance of $1027. A dividend of $1,000 on stocks was credited in Bank Account, but not recorded in Cash Book. There is a difference in the balance as on 31st March 2019 between the bank statement and Cash Book. In past, we have covered Bank Reconciliation Statement in great depth. When the bank statement was reconciled for March 2018, it was found that the Ending Balance in Neeta’s accounts was $2,000 short as compared to that in the bank statement. These are the other details: Bank Reconciliation Statement of Wright Inc. as on 31st December 2018. A direct deposit of $400 was made in Bank Account by a customer, which was not recorded in Cash Book. Neeta made a payment of $2,000 for the office rent on March 31st, which was recorded in her book of accounts in the same month. Example 1: From the following particulars prepare a Bank Reconciliation Statement to find out the causes in two balances as on March 31 st, 2017 for Abdullah Khan (Pvt.) are deposited in the bank, the cash book(bank column) is debited, i.e. Bank Reconciliation Statement Solved Example 2: Franklin is preparing his bank reconciliation statement at 30 June 2018. After careful reconciliation was made between the two statements (Jane’s and that of the bank), it was found that $50.00 was charged to Jane as fees by the bank. The common items are: The balance items would appear in the Bank Reconciliation Statement. After reconciliation, the adjusted bank balance should match with the company’s ending adjusted cash balance. Just as a businessman keeps his cash book so a… XYZ Company is closing its books and must prepare a bank reconciliation for the following items: Bank statement contains an ending balance of $300,000 on February 28, 2018, whereas the company’s ledger shows an ending balance of $260,900 It is properly recorded in the bank statement. Bank Reconciliation examples can be useful to understand what can be the key factors in various instances that require such reconciliation. Although there may be various factors which may cause breaks between the bank’s statement and personal records, bank statement still forms the basis of a lot of other analysis like valid KYC documents,  calculation of credit scores, company analysis, etc. The company wishes to analyze the difference of $10,000 when they receive the bank’s statement in the next month. Hint 1. Cheques worth $200 were issued, but not presented for payment. See below some examples of bank reconciliation questions and answers. Not only is the process used to find out the differences, but also to bring about changes in relevant accounting records to keep the records up to date. Analysis Below is the company’s income/expenses (at a broader level) for December 2016: Below is the record in Bank’s statements: Hence it is determined that the provisions made for salaries to be paid an… Bank Reconciliation is a process that gives the reasons for differences between the bank statement and Cash Book maintained by a business. On 31st March, 2015, Cash Book showed a balance of Rs.15,000 as cash at bank, but the Bank Pass Book of the same date showed that cheques for Rs.1,850, Rs.1,000 and Rs.1,750 respectively had […] Hence it was showing a break in reconciliation. bank reconciliation statement problems and solutions On comparison of Cash Book (Bank Column) and the bank Statement of Aslam Traders for the month of July 2009 revealed the following: 1) Balance as per Bank Statement on July 31, 2009 was Rs.57,000. 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