Page 30 - IC26 LIFE INSURANCE FINANCE

CHAPTER-3

BANK RECONCILIATION STATEMENT

Causes of differences Favorable balance (Dr.) as Unfavorable balance
per cash book or (Cr.) as per cash book
Unfavorable balance (Dr.) or Favorable balance
as per pass book (Cr.) as per pass book
Cheque deposited but not cleared Subtract Add
Cheque issued but not presented to bank Add Subtract
Cheque directly deposited in bank by a Add Subtract
customer
Income directly received by bank Add Subtract
Expenses directly paid by bank on Subtract Add
standing instructions
Bank charges levied by bank Subtract Add
Locker rent levied by bank Subtract Add
Wrong debit in the cash book Subtract Add
Wrong credit in the cash book Add Subtract
Wrong debt in the pass book Subtract Add
Undercasting of Dr. side of bank account Add Subtract
in the cash book
Overcastting of Dr. side of bank account Subtract Add
in the cash book
Undercasting of Cr. side of bank account Subtract Add
in the cash book
Overcastting of Cr. side of bank account in Add Subtract
the cash book
Bill receivable collected directly by bank Add Subtract
Interest on bank overdraft charged Subtract Add
Final Balance if answer is positive then If answer is positive
favorable balance (Cr.) as then unfavorable
per pass book or balance (Dr.) as per
Unfavorable balance (Cr.) as pass book or
per cash book and if favorable balance (Dr.)
negative then unfavorable as per cash book and if
balance (Dr.) as per negative then
pass book or favorable favorable balance (Cr.)
balance (Dr.) as per cash as per pass book or
book unfavorable balance
(Cr.) as per cash book.

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