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

Need help in taxation law, Civil procedure code, Information Technology law, Insurance Law,Media Law and GATT(General Agreement on Tariff and Trade)
You can contact gago bhaiya Saharapur
Aaheli
0 0
View Comments5
If any teacher want space at Sushant vyapaar Kendra for maths or Eco classes then please contact me. I have a class which I use only thrice a week and the rest of the days it can be used by other teachers .
thanks for sharing your space
Premlata B.
How do I get a technical degree after a BCom?
Further study you Will choose MBA finance
Santosh
0 0
View Comments9
What is the Process to build a startup?
Process to build a start up. 1.Choose your business idea 2.Condut market research 3 Write a business plan outline 4 Secure funding for business 5 Choose your business structure 6 Register your business 7...
Abhishek Srivastava
how to learn maths as soon as?
it seems you are pursuing graduation in commerce. For basic mathematics go through the mathematics books of 9th and 10th. but make sure to only do chapters that are relevant to you. e.g. if you are from...
Uma

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

Ask a Question

Related Lessons

The Accounting Equation
Basic of Accounting Equation Before one gets down to analyzing Financial Statements, one needs to know about the accounting equation. It puts things in proper perspective in order to understand the...

Vivek Bhanot

1 0
View Comments0
Relevant v/s. Irrelevant Cost
The purpose of classifying cost into relevant and irrelevant is to eliminate unnecessary information that complicates the process of decision making. Relevant Cost: Cost which will be affected by the...

Fr Prashanth Reddy

4 0
View Comments0
Basic Concepts Of Income Tax
Q: What is Tax ? Ans : It is an Amount which is payable by a person to the government so that govt can meet out of its certain expenses for which directly there are no charges. For Example: Defense,...

Fr Prashanth Reddy

Introduction To Income Tax
Income Tax, Many of the teacher teach the subject but they do not make the student understand the purpose behind this subject. The main aim of this subject is to calculate your income that is earned in...

Smit Shah

0 0
View Comments0
Goods & Service Tax And Its Working
Goods and Service Tax (GST) as the name suggest is a one single tax on the supply of goods and services, right from the Manufacturing to the ultimate delivery to customer. Credits of input tax paid at...

Fr Prashanth Reddy

4 0
View Comments0

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 Mumbai
BCom Tuition in Bangalore
BCom Tuition in Hyderabad
BCom Tuition in Chennai
BCom Tuition in Kolkata
BCom Tuition in Pune
BCom Tuition in Gurgaon
BCom Tuition in Jaipur
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