Bank Reconciliation Question: Download Bank Reconciliation PDF
Tell me what are the important things to be remembered while preparing a bank reconciliation statement?
Answer:
☛ 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