I. PURPOSE OF BANK RECONCILIATION
The purpose of a bank reconciliation is to ensure that the ledger account balance and the bank statement balance agree ( subject to timing difference). There will be two types of reconciling items:
-Items that appear on the bank statement but have not yet been entered into the day books
-Items that have been entered into the day books but have not yet appeared on the bank statement.
II.ADJUSTING THE BANK LEDGER ACCOUNT
Balance per cash book | Xxx/(xxx) |
Items on the bank statement but not in the day books: | |
Bank charges | (xxx) |
Bank interest charged | (xxx) |
Bank interest credit | xxx |
Standing order | (xxx) |
Direct debit payment | (xxx) |
Credit transfer | xxx |
Errors in the day books: | Xxx/(xxx) |
Dishonoured Cheques : | (xxx) |
Revised bank per cash book:
(amount in Balance sheet) |
xxx |
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Download: Chapter 9 Bank Reconciliation