How To/Steps To Prepare A Bank Reconciliation Statement

November 15th, 2007 Comments off
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How To/Steps To Prepare A Bank Reconciliation Statement

The following steps to prepare a bank reconciliation statement are as follows:

  1. 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.

  1. All items appearing on BOTH the Cash Book and the Bank Statement will be ticked (check-marked)

  1. For items that are not ticked, the bookkeeper needs to know the nature and detail of each item.

  1. The bookkeeper needs to WRITE UP the Cash Book by entering those items that are on the Bank Statement but not in the Cash Book. The Cash book is then balanced to get the ADJUSTED Cash Book Balance.

  1. With step 1-4 completed, we are ready to prepare a Reconciliation Statement. The bookkeeper can start with Balance as per adjusted Cash Book or Balance as per Bank Statement.

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