Page 7 - Lesson Note

iv.direct deposits by Customers into banks xxx

v.cheques Deposited into bank but omitted to xxx
be recorded in the cash book
vi. Bills on exchanged realised xxx

Debit balance as per Cash book* xxx

xxx xxx

Meaning of Pass book with Debit balance:

 Pass book with debit balance means unfavourable balance or
negative balance.

 Debit balance or Negative balance as per Pass book means the

accountholder has withdrawn more amount than his deposits.

Preparation of Bank reconciliation Statement starting
with Pass book Debit balance:

Particulars Plus Minus
items Items

Debit balance (unfavourable balance) as per Pass xxx
book

Add :i.cheque deposited but yet not credited by xxx
the bank

ii.bank charges/interest debited by the bank xxx

iii. Direct payments by the bank as per standing xxx
instruction

iv.dishnour of the cheque or bills of exchange xxx

v.cheque issued but omitted to be recorded in xxx
the cash book

Less: i. Cheque issued but not yet presented for xxx
payment
ii. interest allowed by the bank or interest xxx

iii.dividend collected by bank xxx

iv.direct deposits by customers into banks xxx

v. Cheques Deposited into bank but omitted to xxx
be recorded in the cash book