The following steps to prepare a bank reconciliation statement is narrated below:
When the bookkeeper received the Bank Statement he has to first check all the entries in the Cash Book for THAT PERIOD against the Bank Statement.
All items appearing on BOTH the Cash Book and the Bank Statement will be ticked (check-marked)
For items that are [...]
Continue reading about Bank Reconciliation Statement-How To Prepare It(Part3)
In Part 1, we discuss the necessity for the reason(s) for doing a Bank Reconciliation statement.
Very often because of timing challenges, we can see the following items that appeared in the Bank Statement but NOT in the Bank Account of the company’s Cash Book:-
Debit Side Of The Bank Statement:
Bank charges and commission;
Bank overdraft interest;
Cheques from [...]
Continue reading about Bank Reconciliation-Discrepancies between Cash Book & Bank Statement(Part2)
As the company’s bookkeeper, you are recording the transactions in your company’s bank account in the Cash Book. How do you know that all the entries recorded are accurate and also you have taken up all the appropriate transactions? The answers lie in reconciling all the items in your bank account with a statement given [...]
Continue reading about Bank Reconciliation Statement & Its Objective(s)(Part1)
Answer to Accounting Test Question No 4:
Company A
Bank Reconciliation as at 31 st July 2006 $
Balance as per bank statement at 31 st July 2006 55,262
Add: Deposits in transit / Uncredited deposits 1,300
56,562
Deduct:
Unpresented cheques
Check No
6661 dated July 20th $380
6662 dated July 27th 1,050
Adjusted Bank balance at 31 st July 2006 55,512
Balance as per Bank account [...]
Continue reading about Answers To Accounting Question No 4&5 On Bank Reconciliation Statement
Accounting Test Question No 4:
In early August 06, Company A received a bank statement which showed a balance of $55,262 as at 31 th July’06. However, its own record showed a balance of $55,597 on the same date.
The following differences are identified:
(i) Deposits amounted to $1,300 was not in the bank statement;
(ii) Two checks were [...]
Continue reading about Accounting Test No 4 & 5 On Bank Reconciliation Statement
The following are the transactions from Jim’s Cash Book for January 2007:-
Cash Book
$
$
Opening b/f
1,478
Payments
16,891
Receipts
16,071
Balance c/d
658
17,549
17,549
You found the following:(a) bank charges $45 shown on the Bank Statement have not been entered in the Cash Book(b) a cheque drawn for $59 has been entered in error in the Cash Book as a receipt(c) a cheque for $158 [...]
Continue reading about Accounting Test Question No 3 on Bank Reconciliation Statement
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