Archive about 'Bank Reconciliation'

Format Of A Bank Reconciliation Statement

Below presented as a snapshot with explanatory a simple bank reconciliation statement showing the reconciliation between bank statement and cash book where there is no bank overdraft:

Explain what is a dishonored cheque and how it is being treated in the books of account?

Explain what is a dishonored cheque and how it is being treated in the books of account?

Suggested Answer:
Dishonored Cheque is a cheque which is presented for payment and the drawer has insufficient fund in his or her account to cover the cheque which will then [...]

How Many Ways To Prepare The Bank Reconciliation And How Frequent Should We Prepare It

I understand that bank reconciliation is the mechanism for checking the general ledger balance( “book balance” ) against the bank statement bank.
So can you tell me (a) how many ways are there to prepare a bank reconciliation and (b) how frequent should it be reconciled?

In earlier articles, we have discussed reasons for a bank [...]

Answer To Questions ( True or False) On Bank Reconciliation Statement

BANK RECONCILIATION

True

False

1.

When Bank column of a Cash Book shows a credit balance, it means overdraft or amount due to the bank

X

2.

When the bank statement shows a credit balance, it means balance per bank statement or amount due from bank

X

3.

When Bank column of a Cash Book shows [...]

Accounting Questions & Answers On Bank Reconciliation Statement

Answer true or false for the following bank reconciliation statement:

1.

When Bank column of a Cash Book shows a credit balance, it means overdraft or amount due to the bank

2.

When the bank statement shows a credit balance, it means balance per bank statement or amount due from bank

3.

When Bank column of a [...]

Content Page On Bank Reconciliation Statement

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Reasons For Bank Reconciliation Statement and Items Appearing In The Cash Book and or Bank Statement

How To Prepare or Steps To Prepare A Bank Reconciliation Statement

Accounting Test [...]

Answer to Accounting Test Question No 3 &4 On Bank Reconciliation Statement

Answer to Accounting Test Question No 3:
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 [...]

Accounting Test Question No.3&4 On Bank Reconciliation Statement

Accounting Test Question No 3:
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 [...]

Accounting Test Question No.2 On Bank Reconciliation

Accounting Test Question No.2 On Bank Reconciliation

The following are the transactions from James’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 [...]

How To/Steps To Prepare A Bank Reconciliation Statement

 
How To/Steps To Prepare A Bank Reconciliation Statement

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

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 [...]