(v) Uncashed Cheques: Cheques that have been deposited at the bank for payment, but have generally been returned (rejected) due to insufficient funds in the drawer`s account. Sometimes the bank pays the insurance premium, factory rent, interest on bonds, commercial underwriting, etc. on our behalf according to the standing order. The bank debits our accounts and sends the disputes. After receiving the information for the bank, we record it in our cash book. But there will be a disagreement between the cash book and the savings book. (vi) Banking errors: The bank statement may contain errors, these are quite unlikely, but the bank must be informed if such errors have occurred. All items that are already recorded in the company`s general ledger accounts but not yet on the bank statement (unpaid cheques, in-transit deposits) are noted as an adjustment to the balance by account statement. Unpaid cheques are a deduction from the balance by bank; In-transit deposits are a supplement to the balance per bank. The cash deposit at the bank on the day the statement of account is submitted to the depositor will be recorded in the depositor`s general ledger account on that day.
Nevertheless, it will be credited to the bank statement the next day. However, the bank only credits it to the account statement. Interest of Rs 500 as at 31 March 2003. The bank created and sent a bank statement on March 31, 2003. If the customer receives the statement of account on April 4, 2003, there is a difference of Rs 500 between the balance indicated in the cash register and the balance indicated in the savings account. Cash payment by the bank according to the depositor`s standing order? In all the above cases, the entry will first be entered in the passport booklet. The customer will only know this after checking the entries in the passport booklet. There may therefore be a time interval of a few days before the client includes entries in the passport booklet. For example, the bank credited the depositor of Bharat Company Limited with instructions to its customers to deposit the amount due by them directly into their specified bank account.
After tracing the different elements of difference, a bank reconciliation calculation is created starting with the balance of one of the two books. In practice, however, a bank reconciliation declaration is made by the customer, which begins with the balance according to the cash book and guarantees that the balance according to the passport book is reached. (i) Cheques not presented: Cheques issued by the Company on its commercial debts and credited to the cash book but not presented for payment and therefore not debited from the bank statement. (iv) Bank Charges and Bank Interest: These amounts are debited from the commercial bank account to cover the costs of maintaining the account, providing services, interest on loans and overdrafts that the Company may have received from the Bank. For this purpose, the bank shall credit the depositor`s bank accounts. If the depositor`s check for collection is not dishonored due to a lack of money, it will be debited from the bank statement and returned to the depositor who marks N.S.F. (iii) Direct debits or direct debits: They are used in the same way as standing orders to pay money in commercial debts, but this time it is the payable trade (not the bank) itself that can ask the bank to debit our account. Under Deductions, the amounts vary from period to period. (ii) Uncredited cheques (deposits/deposits): These are cheques received by Customers (debited from the cash book) and paid to the Bank for collection, but not cleared and credited by the Bank. In all the above cases, the entry in the cash book is made immediately after the issuance of the check, but of course, the registration by the bank will not take place until the check has been presented for payment. Thus, there is a gap of a few days between the registration for the issuance of the check in the cash register and the payment for the payment in the savings book. For example, on 28 March 2003, Bharat Company Limited issued a cheque in favour of Mr Krishna in the amount of Rs 5,000.
The cheque will be presented to the Bank for payment on April 4, 2003. If the bank is registered by 31. In March 2003, there was a difference of Rs 5,000 between the balance shown in the cash book and the balance in the passport booklet. Cash deposit at the bank directly by the third party? However, the depositor cannot debit his account from the general ledger on the same day, which leads to disagreements between two balances. Checks are deposited at the bank for collection, but not credited to the customer`s account, as the check is sometimes deposited by debtors directly at our bank a/c instead of paying us in cash. In such a case, the bank will transfer the amount to our account and send us an index of this transaction. However, there is usually some delay in receiving this information from the bank. As long as we do not receive the index, the balance of the cash book and the balance of the savings book will not match.
In addition, the cash book shows less credit and the passport booklet shows more balance. The bank provides services to the depositor in the collection of checks, bills of exchange, a note, etc., for which the bank charges commissions, interest, etc., and debits the depositor`s account for these fees. In such a case, when a customer deposits money directly into the depositor`s bank account, the disagreement between two balances persists until it is recorded in the depositor`s general ledger account. When a cheque is issued to a creditor, it is entered on the credit side of the cash book in the Bank column. The bank will register it on the day it is paid. .