Bank Reconciliation Statement 151 5.1 Need for Reconciliation It is generally experienced that when a comparison is made between the bank balance as shown in the firm’s cash book, the two balances do not … Single Column Cash Book. On investigation, the following are the findings: (a) Bank charges of Rs. The features of the cash book are as follows; Since only cash transactions are recorded in the cash book it is a special journal. Single Column Cash Book. 1,000 was issued to a creditor on 27th December but unfortunately, the same was not recorded in the Cash Book. 180 was returned by the Bank marked as ‘refer to drawer’ but it’s not entered in Cash Book.
On investigation, the following are the findings: (a) Bank charges of Rs.
The cash book serves the purpose of the journal and ledger. A company that properly maintains a cash book does not need to open a cash … It works as a book of original entry as well as a ledger account. (v) A cheque for Rs. The entries related to receipt and payment of cash are first recorded in the cash book and then posted to the relevant ledger accounts. 470 issued to the supplier was entered by mistake as a receipt in the Cash Book. These charges are usually not recorded by the business until the bank provides the bank statement at the end of a month which is why balance as per bank statement may be lower than the cash book balance. There are 3 types of a cash book.

The cash book always shows a debit balance. Dividends collected by the bank not recorded in the cash book 1,800 Deposit made by a debtor directly into bank not recorded in cash book 4,500 18,300 26,300 Less : Cheques deposited but not yet collected 6,000 Bank charges recorded in bank books only 750

(c) Incidental charges not recorded in Cash Book ₹ 80. Bank Charges not recorded in cash books shows that there is decrease in passbook but not in the cash book. The entries related to receipt and payment of cash are first recorded in the cash book and then posted to the relevant ledger accounts. This should explain the reason why the collection charges debited by the bank on Aug 18 th , have not yet been recorded in the cash book. The balance of cash book always means cash in hand. 100. Also known as a simple cash book or a one column cash book, a single column cash book has one relevant column on each side which shows the simple “receipts” and “payments” of cash. Therefore, it is possible that the date on which the bank has debited these charges and the date on which the customer has recorded the same on receipt of information to be different.

Bank Charges not recorded in cash books shows that there is decrease in passbook but not in the cash book. In case a transaction affects both the cash and the bank account, a contra entry is recorded. 180 was returned by the Bank marked as ‘refer to drawer’ but it’s not entered in Cash Book.