Bank Reconciliation Question:
Explain step for preparing a bank reconciliation statement?
Answers:
Answer #1* Bank Reconciliation Statement is prepared either by starting with the Bank pass book balance or Cash book balance.
* If the balance of the Cash book is taken as a starting point then Cash book balance is to be adjusted in accordance with the entries passed in the Bank pass book and vice versa. For example: If the balance is taken as per the Cash book then the following items will be added:
* Cheques issued but not presented for payment;
* Amount credited in Passbook but not in Cash book;
* Deposits made in the bank directly;
* Wrong credits given by bank;
* Interest credited in the Passbook.
* If the balance of the Cash book is taken as a starting point then Cash book balance is to be adjusted in accordance with the entries passed in the Bank pass book and vice versa. For example: If the balance is taken as per the Cash book then the following items will be added:
* Cheques issued but not presented for payment;
* Amount credited in Passbook but not in Cash book;
* Deposits made in the bank directly;
* Wrong credits given by bank;
* Interest credited in the Passbook.
Answer #2A listing of uncleared checks and uncleared deposits will appear.
2.Check off in the bank reconciliation module all checks that are listed on the bank statement as having cleared the bank. 3.Check off in the bank reconciliation module all deposits that are listed on the bank statement as having cleared the bank. 4.Enter as expenses all bank charges appearing on the bank statement, and which have not already been recorded in the company's records. 5.Enter the ending balance on the bank statement. If the book and bank balances match, then post all changes recorded in the bank reconciliation and close the module. If the balances do not match, then continue reviewing the bank reconciliation for additional reconciling items. Look for the following items: •Checks recorded in the bank records at a different amount from what is recorded in the company's records. •Deposits recorded in the bank records at a different amount from what is recorded in the company's records. •Checks recorded in the bank records that are not recorded at all in the company's records. •Deposits recorded in the bank records that are not recorded at all in the company's records. •Inbound wire transfers from which a lifting fee has been extracted.
2.Check off in the bank reconciliation module all checks that are listed on the bank statement as having cleared the bank. 3.Check off in the bank reconciliation module all deposits that are listed on the bank statement as having cleared the bank. 4.Enter as expenses all bank charges appearing on the bank statement, and which have not already been recorded in the company's records. 5.Enter the ending balance on the bank statement. If the book and bank balances match, then post all changes recorded in the bank reconciliation and close the module. If the balances do not match, then continue reviewing the bank reconciliation for additional reconciling items. Look for the following items: •Checks recorded in the bank records at a different amount from what is recorded in the company's records. •Deposits recorded in the bank records at a different amount from what is recorded in the company's records. •Checks recorded in the bank records that are not recorded at all in the company's records. •Deposits recorded in the bank records that are not recorded at all in the company's records. •Inbound wire transfers from which a lifting fee has been extracted.
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