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Bank reconciliation statement
Accountancy
If cash book blance is give and adjustment is like â?¹500 DISCOUNT RECEIVED WRONGLY ENTERED IN BANK COLUMN, what the treatment for this
Answers (16)
Then you have to deduct it from cash book balance since we have wrongly recorded the discount received in bank column ( actually to be recorded in cash column) . Balance as per bank statement will be low because of no discount received. To match with it , reduce from cash book balance
Shankari C
Then you have to deduct it from cash book balance since we have wrongly recorded the discount received in bank column ( actually to be recorded in cash column) . Balance as per bank statement will be low because of no discount received. To match with it , reduce from cash book balance
I also think the same but why this is increasing as ICAI ð???
Shankari C
No idea .. let's wait for others reply
Ohk ! I have go through certain video in youtube but they don't make sense .
Harshita Tripathi
In this q. Says balance as per cash book it means we go according to passbook in this entry balance of passbook is increasing so cash book will also increase
We received discount in cash then how passbook will increase
Dharani Chakravarthi
Discount received is an income. While preparing BRS with balance as per cashbook, income is to be added.
It will be true if we start the statement from balance as per passbook that means we are adjusting the passbook balance are trying to do it equivalent as per cashbook . But balance is given as per cash book
Thread Starter
Anvar AnsariIt will be true if we start the statement from balance as per passbook that means we are adjusting the passbook balance are trying to do it equivalent as per cashbook . But balance is given as per cash book
I think you misunderstood the format, For balance as per cashbook Add incomes Less expenses For balance as per passbook Less incomes Add expenses. This is not given in our book, but it is the rough format for BRS.
Dharani Chakravarthi
I think you misunderstood the format, For balance as per cashbook Add incomes Less expenses For balance as per passbook Less incomes Add expenses. This is not given in our book, but it is the rough format for BRS.
Discount received entered in bank column means excess debit in the bank column which increases balance as per books. So you would reduce it. if you follow formats blindly, you might make errors in exams.
It is not the way you guys are thinking. If you remember the three column cash book the discount received was on the credit side and according to the question the amount of 500/- is wrongly entered in the bank column instead of discount received column. Since the discount received column is in the credit side of the cash book so the 500/- is entered in the bank column of credit side. To reconcile it we will have to debit it i.e. add it back.
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