What are the important things to be remembered while preparing a bank reconciliation statement?

Asked by Last Modified  

4 Answers

Follow 0
Answer

Please enter your answer

Ms Alam

Accounting and Taxation Expert

It should be cosidered whether the bank balance is correct or not and the date of recocilation should be same between bank book and bank statement, also cosidered the cheque in transit.
Comments
Dislike Bookmark

Tutor

While preparing a bank reconciliation statement following important points need to be remembered: * 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...
read more
While preparing a bank reconciliation statement following important points need to be remembered: * 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. The following items will be subtracted: * Cheques deposited but not cleared; * Interest/Bank Charges debited by bank * Direct payments made by bank not entered in Cash book * Cheques dishonoured not recorded in cash book * Wrong debits given by bank * If it is prepared with the Bank balance as per the bank passbook, then the above procedure will be reversed i.e the items will be added to the pass book which were deducted from the cash book balance and those items will be deducted from the bank pass book balance which were added to the cash book balance. read less
Comments
Dislike Bookmark

Conmerce Coaching

Students should be taught the logic behind adding & subtracting the amount from the given balance rather to only remember the + or - otherwise student may not be able to solve the tricky problems.
Comments
Dislike Bookmark

B. Com( Hons), C.A (IPCC-Group-I), C.S Executive

Firstly, you need to understand that In cash book: Debit side records the money received by customer( increases the cash balance) and credit side records the payment ( decreases the cash balance). In bank pass book:Debit side records the money payments made by bank on behalf of customer( decreases...
read more
Firstly, you need to understand that In cash book: Debit side records the money received by customer( increases the cash balance) and credit side records the payment ( decreases the cash balance). In bank pass book:Debit side records the money payments made by bank on behalf of customer( decreases the bank balance) and credit side records the money received by bank on behalf of customer ( increases the bank balance). In cash book, Debit balance is favourable balance whereas in bank pass book Credit balance is unfavourable balance. In the given question, first understand which balance is given and which balance is to be arrived. Then, for each transaction you must see which balance is more. For eg: In the problem u have been given cash book balance and u are required to arrive at bank book balance. In that case if a transaction makes the cash book balance greater than bank pass book, then you should subtract.and if a transaction makes the cash book balance lesser than bank pass book then you should add that amount to cash book balance. read less
Comments
Dislike Bookmark

View 2 more Answers

Related Questions

How can I find some best BCom tuition classes in my locality?
Check with the senior students who already appeared the examination.
Vikas
What about a good computerized language which I can learn soon?
if you are a beginner then you can start with java because it is in high demand, but you should practice the programs from class 11 and 12 isc books because there are lots of programs to implement, after...
Sabat
What is revenue expenditure?
Revenue expenditures are small expenditures which are related to day to day business that could be incurred direct or indirect to earn revenue. Hence, they are always shown in profit and loss account unlike...
Muskaan
0 0
7
what do you mean by accounts
Financial records of an organization that register all financial transactions, and must be kept at its principal office or place of business. The purpose of these records is to enable anyone to appraise...
Aravindan

What fees should I charge for bcom students regular as well as correspondence for mumbai university students as I am fresher into coaching industry
500 per hour
Rishikesh V

Now ask question in any of the 1000+ Categories, and get Answers from Tutors and Trainers on UrbanPro.com

Ask a Question

Related Lessons

GST By CA Prashanth Reddy
GST on services fixed; Ola, Uber rides and flights to be cheaper, education and health exempt. The GST Council on Friday finalised tax rates for services under the Goods and Service Tax (GST) regime,...

FR Prashanth Reddy

Demand Analysis
Demand indicates the willingness of a person to buy a product at a particular price during given time period. There are three things which is mandatory for a demand of a product : 1. Willingness to purchase. 2....

Shanu Singh

0 0
0
Commerce: How to express it in interviews?
Most of the Commerce Students when go to give an interview are generally faced with a very common question; as to "What is Commerce?" Now, it is not something we don't know specially after becoming graduate...

Amit Wasdev

0 0
0
What Is The Difference Between VAT And GST?
Q: What is the difference between VAT and GST? A: Following are the basic differences between VAT and GST: VAT was leviable only by the respective State Governments, while GST is leviable by Central...

FR Prashanth Reddy

6 0
0
Today Is Demonetisation. What is Next?
Mr. Modi taught us the term "Demonetisation". I need not to write its meaning as most of us have learned its true meaning through practical experience. Impact of Demonetisation: 1. Dollar Rate conversion...

Venkatesh

0 0
0

Recommended Articles

The Trend of E-learning and it’s Benefits

E-learning is not just about delivering lessons online. It has a much broader scope that goes beyond manual paper or PowerPoint Presentations. To understand the reach of E-learning and how the whole process works in developing the Educational system, we will discuss a few points here. Let us find out how this new learning...

Read full article >

How To Choose The Right School For Children?

Quality education does not only help children to get a successful career and life, but it also hugely contributes to society. The formal education of every child starts from school. Although there are numerous schools, parents find it challenging to choose the right one that would fit their child. It is difficult for them...

Read full article >

Top Benefits of e-Learning

With the current trend of the world going digital, electronic renaissance is a new movement that is welcomed by the new generation as it helps makes the lives of millions of people easier and convenient. Along with this rapidly changing movement and gaining popularity of Internet, e-Learning is a new tool that emerging...

Read full article >

Science, Arts Or Commerce - Which One To Go For?

Once over with the tenth board exams, a heavy percentage of students remain confused between the three academic streams they have to choose from - science, arts or commerce. Some are confident enough to take a call on this much in advance. But there is no worry if as a student you take time to make choice between - science,...

Read full article >

Find BCom Tuition near you
BCom Tuition in Delhi
BCom Tuition in Bangalore
BCom Tuition in Mumbai
BCom Tuition in Hyderabad
BCom Tuition in Chennai
BCom Tuition in Kolkata
BCom Tuition in Pune
BCom Tuition in Gurgaon
BCom Tuition in Noida
BCom Tuition in Ghaziabad

Looking for BCom Tuition ?

Learn from the Best Tutors on UrbanPro

Are you a Tutor or Training Institute?

Join UrbanPro Today to find students near you