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Bank reconciliation

anand (BUSINESS) (136 Points)

22 September 2011

despite my effort i m not being able to reconcile one of my bank a/c and there exists a difference in balance .

(credit bal in bank a/c as per my books.)

how can i take the effect in balance sheet if the diff is not rectified as the last date for subbmission is very close

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4 Replies

CA Vibhash Kumar Sah (Associate Manager) (700 Points)
Replied 22 September 2011

Well Mr. Anand, your problem is not unique. If u r able to satisfy ur Auditor, show the negative balance of Bank Account as book overdraft (assuming your bank account is normal current account and overdraft facility is not available). Book Overdraft is the normal term and come mainly because at year end many small firms issue cheques to its vendors for the amount more than the available bank balance.

I am also eager to listen some more better solutions from other members...

Mihir (Wealth Manager) (5293 Points)
Replied 22 September 2011

Bank balance in books and bank statement should always match. You can create a suspense account and rectify the mistakes by debiting/crediting suspense account. Maybe while doing this, you might find the right ledger to debit/credit.

I had similar problem once. Difference of about 3 cr.

anand (BUSINESS) (136 Points)
Replied 23 September 2011

Originally posted by : CA Vibhash Kumar Sah
	Well Mr. Anand, your problem is not unique. If u r able to satisfy ur Auditor, show the negative balance of Bank Account as book overdraft (assuming your bank account is normal current account and overdraft facility is not available). Book Overdraft is the normal term and come mainly because at year end many small firms issue cheques to its vendors for the amount more than the available bank balance. I am also eager to listen some more better solutions from other members...

Mr Sah,

thaks for your effort,but i thin i have not made my question clear.

actualy my problem is that the balance of bank book as per bank staement & as per my books of a/c is not reconciling after taking into consedaration the bank reconciliation statement.

for example...

bal as per bank statement 100000

less cheque issued but not presented 15000

bal of bank a/c as per cash book 85000

now here istead of 85000 i am getting a bal of say 80000/-

now what about the bal 5000/-

plz help...