Give any three reasons for preparing bank reconciliation statement.

Explain why does money deposited into bank appear on the debit side of the cash book, but on the credit side of the bank statement?

State the timing differences in BRS with examples.

Rony is the proprietor of Veena photos. The bank column of cash account of his business was balanced on 31^st March 2018. It showed an overdraft of Rs.12,000. The bank statement of Veena photos showed a credit balance of Rs.5,000. Prepare a bank reconciliation statement taking the following into account.
(a) The bank had directly collected dividend Rs.3,000 but was not entered in the cash book.
(b) Cheques amounting to Rs.9,000 were issued on 27^th March 2018, of which, cheques amounting to Rs.7,000 were not presented for payment before 31^st March 2018.
(c) Cheque book charges of Rs.200 debited by the bank but not recorded in cash book.
(d) Bank locker rent of Rs.1,000 debited by the bank but not recorded in cash book.

From the following information, prepare bank reconciliation statement as on 31st December, 2017 to find out the balance as per bank statement.

	Particulars	Rs
(i)	Balance as per bank statement	6,000
(ii)	Cheques deposited on 28th December, 2017 but not yet credited	2,000
(iii)	Cheques issued for 10,000 on 20th December, 2017 but not yet presented for payment	3,000
(iv)	Interest on debentures directly collected by the bank not recorded in  cash book	4,000
(v)	Insurance premium on building directly paid by the bank	1,000
(vi)	Amount wrongly credited by bank	500