Archive about 'Bank Reconciliation'

Answers To Accounting Question BR No 1 On Bank Reconciliation

Answer to Question No BR1:
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 [...]

Accounting Test No BR1: Bank Reconciliation

Question No BR1:
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 sent to [...]

Bank Reconciliation Statement

Why do we need to have a bank reconciliation statement?

Reason For A Bank Reconciliation Statement

Due to the timing of the recording of the receipts and payments in the Cash Book from the recording by the bank, very frequently, a Bank Statement balance may not agree with the balance in the Cash Book.
Hence, a bank reconciliation [...]