2. BANK
A Bank is a financial
intermediary and money
creator that creates
money by lending
money to a borrower,
thereby creating a
corresponding deposit
on the bank's balance
sheet.
3. The cash books are
simple accounting
books that are used to
enter basic data about
cash payments and
receipts.
CASH BOOK & PASS BOOK
10. PARTICULARS AMOUNTS AMOUNTS
Balance as per Cash Book
LESS:
Cheques deposited but not credited by the
bank 1,500
200
Bank Reconciliation Statement as on Dec 31, 2003
CASH BOOK PASS BOOK
100 100
(+) 1500 -
1600 100≠(-)
1. Cheques deposited but not yet collected by the bank
Rs. 1,500
11. PARTICULARS AMOUNTS AMOUNTS
Balance as per Cash Book
ADD:
Cheques issued to Mr.Raju but not presented
for payment 2,500
2,500
200
Bank Reconciliation Statement as on Dec 31, 2003
CASH BOOK PASS BOOK
3000 3000
(-)2500 -
500 3000
(+)
≠
2. Cheque issued to Mr.Raju has not yet been presented
for payment Rs. 2,500
12. PARTICULARS AMOUNTS AMOUNTS
Balance as per Cash Book
LESS:
Bank charges as per pass book 200 200
200
Bank Reconciliation Statement as on Dec 31, 2003
CASH BOOK PASS BOOK
500 500
- 200 (-)
500 300
(+)
≠
3. Bank charges debited in the pass book Rs.200
13. PARTICULARS AMOUNTS AMOUNTS
Balance as per Cash Book
ADD:
Interest allowed by the bank 100
200
Bank Reconciliation Statement as on Dec 31, 2003
CASH BOOK PASS BOOK
500 500
- 100 (+)
500 600
(-)
≠
4. Interest allowed by the bank Rs.100
14. PARTICULARS AMOUNTS AMOUNTS
Balance as per Cash Book
LESS:
Insurance premium directly paid by the bank
as per standing instructions
500
200
Bank Reconciliation Statement as on Dec 31, 2003
CASH BOOK PASS BOOK
1000 1000
- 500 (-)
1000 500
(+)
≠
5. Insurance premium directly paid by the bank as per
standing instructions Rs.500
18. Assignment
- go through the example sum
- do the exercise sum 1 & 2
- write any two cases of disagreement between
the balance shown by the cash book & pass Book