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Bank Reconciliation

Bank Reconciliation. Bank Reconciliation. Reconcile. Cash Book. Bank Statement. Example. The bank columns of Fatima’s cash book for the month of April 2008 are given below. Cash Book (Banks columns only). Fatima’s bank statement for the month of April 2008 is given below.

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Bank Reconciliation

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  1. Bank Reconciliation

  2. Bank Reconciliation Reconcile Cash Book Bank Statement

  3. Example The bank columns of Fatima’s cash book for the month of April 2008 are given below. Cash Book (Banks columns only)

  4. Fatima’s bank statement for the month of April 2008 is given below. REGIONAL BANK LTD West District Account: Fatima Goyal Account No: 987654 Date: 30 April 2008 

  5. 1) Place a tick () against the items appearing in both the records. The bank columns of Fatima’s cash book for the month of April 2008 are given below. Cash Book (Banks columns only)   

  6. 1) Place a tick () against the items appearing in both the records. Fatima’s bank statement for the month of April 2008 is given below. REGIONAL BANK LTD West District Account: Fatima Goyal Account No: 987654 Date: 30 April 2008   

  7. 2) Make corrections to items which do not have ticks a) Cash Book Update Cash Book (Banks columns only)

  8. 2) Make corrections to items which do not have ticks • (b) Bank Statement Update (Bank Reconciliation Statement) • Fatima • Bank Reconciliation Statement at 30 April 2008 • $ $ • Balance shown on bank statement 3 092 • Add: Amounts not yet credited: -ABC Stores 217 - Sales 1 4601 677 4 769 Less: Cheques not yet presented:- TeeDee Co. 1 372 - Dobhal Ltd. 517 (1 889) Balance shown in cash book 2 880

  9. Why the Bank Account and the Bank Statement may differ?

  10. Advantages of Bank Reconciliation • An accurate bank balance is available. • Errors in the bank account or in the bank statement can be identified. • Assists in discovering fraud and embezzlement • Amounts not credited by the bank can be identified • Cheques not yet presented can be identified • Any “stale” cheques can be identified and written back into the bank account.

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