true

Find the best tutors and institutes for BCom Tuition

Find Best BCom Tuition

Please select a Category.

Please select a Locality.

No matching category found.

No matching Locality found.

Outside India?

Search for topics

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

Asked by Last Modified  

Tuition/BCom Tuition

Follow 0
Answer

4 Answers

Please enter your answer

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

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

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

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

View 2 more Answers

Related Lessons

Economics
INTRODUCTION Every individual has specific needs, for the satisfaction of which, he/she needs resources. But the resources that a person have, to satisfy his needs are always limited and have alternative...

Shipra | 29 Jul

1 0
0

Introduction to Managerial Economics
MANAGERIAL ECONOMICS Application of Economics in Managerial Decision Making to optimize resources of the firm and maximize the value of the firm What is economics? The best product, wealth, or...

Dr Neelam T. | 10 Jul

1 0
0

7 T's Post Corona : Economic and Management view
Every Economy is a Keynesian Model right now but not to increase the Aggregate Demand but to control the Pandemic. As the saying goes, the rule of war never changes, it's the weapons that change. So post...

Neha S. | 23 Jun

0 0
0

Recommended Articles

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 >

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 >

When it comes deciding the right school for children, parents definitely try to be accurate. Yet the competitive academic industry offers too many options when it comes to school for children and there begins the confusion. With new schools coming up, parents get utterly confused which school will be the best for their...

Read full article >

Before sending children to school, parents hardly take the effort to well educate their children. Parents expect school to do everything and make the children become scholar. Though schools have significant roles to play in a child s life but certain developments and habits grow in a child, from parents end only. These...

Read full article >

Looking for BCom Tuition ?

Find best BCom Tuition in your locality on UrbanPro.

Are you a Tutor or Training Institute?

Join UrbanPro Today to find students near you
X

Looking for BCom Tuition Classes?

Find best tutors for BCom Tuition Classes by posting a requirement.

  • Post a learning requirement
  • Get customized responses
  • Compare and select the best

Looking for BCom Tuition Classes?

Find best BCom Tuition Classes in your locality on UrbanPro

Post your learning requirement

UrbanPro.com is India's largest network of most trusted tutors and institutes. Over 25 lakh students rely on UrbanPro.com, to fulfill their learning requirements across 1,000+ categories. Using UrbanPro.com, parents, and students can compare multiple Tutors and Institutes and choose the one that best suits their requirements. More than 6.5 lakh verified Tutors and Institutes are helping millions of students every day and growing their tutoring business on UrbanPro.com. Whether you are looking for a tutor to learn mathematics, a German language trainer to brush up your German language skills or an institute to upgrade your IT skills, we have got the best selection of Tutors and Training Institutes for you. Read more