Page 5 - Lesson Note

V. cheques paid into bank but omitted to xxx
be recorded in the cash book

vi. Bills on exchanged realised xxx
Less: i. cheque deposited but yet not xxx
credited by the bank

ii. Bank charges/interest debited by the xxx
bank

iii. Direct payments by the bank as per xxx
standing instruction
iv. Dishonour of the cheque or bills of xxx
exchange

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

Credit balance as per xxx
passbook*
xxx xxx

Meaning of cash book Credit balance:

 Cash book with credit balance means Cash book with overdraft balance

or unfavourable balance or negative balance.

 Credit balance or overdraft balance as per cash book means the
amount which has been withdrawn in excess of the deposits.

Preparation of Bank Reconciliation Statement starting

with cash book Credit balance :
Particulars Plus items Minus Items

Credit balance (Un favourable balance)as xxx
per cash book

Add: i. Cheque issued but not yet xxx
presented for payment

ii. interest allowed by the bank or xxx
interest

iii.dividend collected by bank xxx