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Poa Notes For Csec

This document provides instructions for completing a bank reconciliation statement. It explains that a bank reconciliation statement is necessary when the closing balance in the cash book does not match the balance on the bank statement. It outlines the steps to reconcile the two balances which include adding unpresented checks or bank lodgements not yet credited, and subtracting the opposite. The reconciled balance should then match the balance per the cash book and balance per the bank statement.

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Vida Betances-Reyes
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1K views3 pages

Poa Notes For Csec

This document provides instructions for completing a bank reconciliation statement. It explains that a bank reconciliation statement is necessary when the closing balance in the cash book does not match the balance on the bank statement. It outlines the steps to reconcile the two balances which include adding unpresented checks or bank lodgements not yet credited, and subtracting the opposite. The reconciled balance should then match the balance per the cash book and balance per the bank statement.

Uploaded by

Vida Betances-Reyes
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Bank reconciliation statement

Completing entries in the cash book book


- All entries entered in the cash book must be the same with the bank
- Many times it isn’t the case, so you request a bank statement from the bank and compare it
with the cash book
- Ex

- Things that are missing in the cash book but are found in the withdrawal part of the bank
statement should be put in the credit side of the cash book
- Things under the deposit part of the bank statement should be put under the debit side of the
cash book
- Rmr there is a balance carried down

- Balance c/d should be the same as the balance in the bank statement

Where closing balances differ

- When there are items in the cash book but are not in the bank statement a bank reconciliation
statement should be made
 Balance b/f found in the bank statement should always be in the cash book ( credit side )
- Items in the debit side of the cash book that aren’t in the bank statement are known as bank
lodgement not yet credited
- Items in he credit side of the cash book that aren’t in the bank statements are known as
unpresented cheque

Bank reconciliation statement


- Can begin with
1) Balance as per cash book
2) Balance as per bank statement

Balance as per cash book


- Add unpresented check to balance as per cash book
- Subtract bank lodgement not yet credited
- Should give you balance in the bank statement

Balance as per bank statement


- Add bank lodgement not yet credited to balance as per bank statement
- Subtract unpresented cheque
- Should give you the balance c/ d figure in the cash book

 The bank balance in the balance sheet is that per cash book after it has been adjusted
($600)

Bank overdraft
- Is shown with the letter O/D
- Or Dr

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