Lesson Plan on the Topic Bank Reconciliation Statement

 

Lesson plan under constructivisit format

Name of the student teacher  :  Surekha V S                                     Class      :  XI

Name of the School               :  SVTEC, Akkikkavu                         Strength : 45

Subject                                   :  Accountancy                                    Duration : 40 minutes

Unit                                        : Bank Reconciliation Statement        Date        : 12/06/2021

Topic                                      : Bank Reconciliation Statement        Period     : 2

 

Content Outline

Bank Reconciliation Statement

Content Analysis   Terms     Facts                                                                Concepts         Learning Outcomes               Pre requisites       Values/ Attitudes    Process Skills    Learning Strategies   Learning Aids/Resources             Expected Output   References

Bank Reconciliation Statement   1.     Bank Reconciliation Statement is a statement to reconcile the balances of cash book and the passbook balance   2.     The differences between the cash book and the bank passbook is caused by: • timing differences on recording of the transactions. • errors made by the business or by the bank.   3.     The difference, which is caused by the time gap in recording the transactions relating either to payments or receipts is timing differences   4.     The timing differences include:   ü  Cheques issued by the bank but not yet presented for payment ü  Cheques paid into the bank but not yet collected ü  Direct debits made by the bank on behalf of the customer ü  Amounts directly deposited in the bank account ü  Interest and dividends collected by the bank ü  Direct payments made by the bank on behalf of the customers ü  Cheques deposited/bills discounted dishonoured 5.     The difference between the two balances may be accounted for by an error on the part of the bank or an error in the cash book of the business is called differences caused by errors 6.     The error differences are due to ·       Errors committed in recording transaction by the firm ·       Errors committed in recording transactions by the bank 7.     Deposit balance of cash book shows debit balance 8.     Deposit balance of passbook shows credit balance 9.     Overdraft balance of cash book shows credit balance 10.  Overdraft balance of passbook shows debit balance   Major Concept: Bank Reconciliation Statement   Minor Concept: Causes of differences in PB &CB     State the meaning and need for the preparation of bank reconciliation statement   Identify causes of difference between bank balance as per cash book and pass book   Prepare the Bank Reconciliation Statement     Learners have a general awareness regarding cash book & passbook & the balances of both should naturally agree on a particular date   Daily/ periodically check the balances of cash book & pass book balance, financial discipline   Observing, Identifying, Discussing, Communicating, Classifying, Solving   Case study, problem solving   Usual classroom aids A specimen of pass book & cash book Chart showing the format of Bank Reconciliation Statement Chart showing the treatment of the causes of difference in Pass Book & Cash Book Activity cards containing problems, classification of differences in pass book & cash book   Activity reports, BRS, Cash book Balance, Passbook balance   SCERT text of Accountancy XI

 

ACTIVITY/PROCESS

ASSESSMENT

INRODUCTORY ACTIVITY (Case Study)   Teacher entered in the classroom with a smile & created a good rapport with students. After the usual practices, teacher asked some leading questions in order to test their previous knowledge like,   Do you know what is cash book? What is the purpose of cash book? What is the difference between cash book & pass book?     Ok Very Good     Do you think the cash book balance & pass book balance always shows the same?   Can you say why this these differences happening? To make it clear teacher groups the students in to two then supplies the specimen a cash book & pass book. Then asked the students to find out the differences between these two.   Pass Book   Date Particulars Withdrawals Deposit Dr/Cr Balance 1995 Nov 1 Balance b/d     Cr 9500 3 Madhavan 440   Dr 9060 7 Kasim 550   Dr 8510 8 Shah   300 Cr 8810 12 Cash   900 Cr 9710 18 Warrier   600 Cr 10310 21 Rahim 540   Dr 9770 26 Insurance Premium 500   Dr 9270 30 Bank charges 100   Dr 9170 30 Cash 2800   Dr 6370 30 Interest   100 Cr 6470 30 Interest on investment   1000 Cr 7470    Cash Book (Bank Column Only)   Date Particulars LF Amount Date Particulars LF Amount 1995 Nov1   Balance b/d     9500 1995 Nov 2   Madhavan     440 6 Salim   250 6 Kasim   550 10 Shah   300 11 John   570 12 Cash   900 15 Sandheep   450 14 Warrier   600 18 Rahim   540 19 Sumesh   560 24 Sunil   620 26 Manoj   880 30 Cash   2800         30 Balance c/d   7020       12990       12990   Discussion points:     Cash book balance Rs.7020 but the pass book balance Rs. 7470     Some items not entered in the cash book like bank charges, insurance premium, interest, interest on investment     Like-wise some items not entered in the passbook such as receipts from Manoj, Sumesh & Payment to Sandheep etc These are reasons why this pass book & cash book balances shows differences. In order to reconcile the balances of cash book & pass book balances we have to prepare a statement called Bank Reconciliation Statement. Let’s discuss more about BRS in today’s class.   DEVELOPMENTAL ACTIVITY     General Discussion   Teacher ask the students to discuss with the information provided in the activity card and classify the transactions into two categories   Read the following transactions and identify the cause of difference on the basis of time gap or errors made by business firm/bank. Put a tick mark on the correct cause   Sl No. Transactions Time Gap Errors made by business or bank 1 Cheques issued to customers but not presented for payment     2 Cheque amounting to Rs. 5,000 issued to M/s. XYZ but recorded as Rs. 500 in the cash book     3 Interest credited by the bank but yet not recorded in the cash book     4 Cheque deposited into the bank but not yet collected by the bank     5 Bank charges debited to firm’s current account by the bank       Teacher also participated and gave proper support to the students in the discussion. Students actively participated in the discussion & the teacher clarifies the doubts raised by the students Teacher concluded the activity with the help of a chart showing the treatment of the causes of differences in pass book & cash book   CHART Treatment of Items in the BRS Sl No. Items Starting with CB Starting with PB 1 Cheque issued but not presented + - 2 Cheque deposited but not collected - + 3 Cheque paid into bank but returned dishonoured - + 4 Bank charges debited in the PB only - + 5 Interest on deposits credited in the PB + - 6 Direct payment into bank by a customer + - 7 Payment made by bank as per standing instructions - +   Discussion points:     Causes of differences in PB & CB due to time gap are: §  Cheques issued by the bank but not yet presented for payment §  Cheques paid into the bank but not yet collected §  Direct debits made by the bank on behalf of the customer §  Amounts directly deposited in the bank account §  Interest and dividends collected by the bank §  Direct payments made by the bank on behalf of the customers §  Cheques deposited/bills discounted dishonoured     Causes due to error made by bank or firm are: §  Wrong totalling §  Wrong posting   Activity II Problem Solving   Teacher divided the whole class into five groups and provided handouts to each group. And she also asked the students to discuss about the problem given in the Activity cards based on the specimen of BRS are as follows:       Format of BRS   Sl No.   Particulars   +   -   1 Balance as per CB ****   2 Cheque issued but not presented ****   3 Cheque deposited but not collected   **** 4 Bank charges   *** 5 Bank interest ***   6 Cheque deposited but dishonoured   **** 7 Payment as per standing instruction   ****   Balance as per PB   ****     ***** *****     PROBLEM From the following particulars of Anil & Co. prepare a Bank Reconciliation Statement as on August 31, 2020.  1. Balance as per the cash book Rs. 54,000.  2. Rs. 100 bank incidental charges debited to Anil & Co. account, which is not recorded in cash book.  3. Cheques for Rs. 5,400 is deposited in the bank but not yet collected by the bank.  4.  A cheque for Rs. 20,000 is issued by Anil & Co. not presented for payment. All the students actively participated in the discussion. Teacher also participated and cleared all the doubts raised by them.                                      OUTPUT: Balance as per PB Rs 68500   CONCLUDING ACTIVITY   Teacher concluded the activities with the help of a worksheet related to the preparation of BRS   The bank passbook of M/s. Boss & Co. showed a balance of Rs. 45,000 on May 31, 2020. 1. Cheques issued before May 31, 2020, amounting to Rs. 25,940 had not been presented for encashment. 2. Two cheques of Rs. 3,900 and Rs. 2,350 were deposited into the bank on May 31 but the bank gave credit for the same in June, 2020. 3. There was also a debit in the passbook of Rs. 2,500 in respect of a cheque dishonoured on 31.5.2020. Prepare a bank reconciliation statement as on May 31, 2020   Sl No.   Particulars   +   -   1 Balance as per PB 45000   2 Cheque deposited but not collected     3 Cheque deposited but dishonoured     4 Cheque issued but not presented     5 Balance as per PB         53750 53750   OUTPUT Balance as per CB Rs. 27810 1.        FOLLOW- UP ACTIVITY   In order to strengthen the acquired knowledge teacher provides a specimen of cash book & pass book of Mr. Abbas, prepare a BRS   Cash book (Bank Column only) Date Particulars LF Amount Date Particulars LF Amount 1996 Jan 1   Balance b/d     4510 1996 Jan 2   Ganga     1230 3 Cash   300 2 Wages   3000 10 Anand & Co.   1000 14 Anand & Co. (Cheque returned)   1000 15 Sohan & Co   2300 15 Vishnu   300 17 Cash   600 18 Ram   470 20 Prasad & Co.   1550 24 Cash   400 24 Rahim & Co.   740 28 Saidas   780 31 C David   2130 31 Pran & Co.   340         31 Balance c/d   5610       13130       13130   Pass Book Date Particulars Withdrawals Deposit Dr/Cr Balance 1996 Jan1 Balance b/d     Cr 4510 3 Cash   300 Cr 4810 4 Self 3000   Dr 1810 10 Ganga 1230   Dr 580 16 Sohan & Co.   2300 Cr 2880 17 Cash   600 Cr 3480 20 Ram 470   Dr 3010 24 Cash 400   Dr 2610 31 LIC Premium 250   Dr 2360 31 Bank charges 10   Dr 2350 31 Interest   300 Cr 2650

Yes To record the cash transactions Cash book maintained by ourselves & pass book maintained by the bank       No