 |
|
| Browse | Ask | Answer | Search | Join/Login |
|
|
||||
|
Bank reconciliation
I have to prepare a bank reconciliation and unlike most problems I'm given pictures of the books rather than a list of the items, so I was wondering how do you find the deposit in transit and the error in deposit? I'm given the bank statement, cash payments journal, and cash receipts journal.
|
||||
|
||||
|
In bank reconciliations there are two positions:- 1) Your books; and 2) The Bank's books. They each show their positions. What you need to do is update both books to portray the same positions. This means you update the information in both. When you do this you find that they show the same position. |
||||
|
||||
|
From the bank statement you add deposits that were made to the bank that have not been recorded on the bank statement. Next you subtract the $ amount of checks that are still outstanding. This is your adjusted bank bank balance. From the company's balance per their books you have to add deposits that were recoded in the bank statement that do not appear in your books. An example is interest received or a CD that has matured, etc. Next you subtract expenses that are in the bank statement that do not appear on the company's books. An example is monthly bank fees, automatic payments, etc. This is your adjusted book balance. Also you need to check that the amount of your individual deposits and checks on your books equal the amount of the individual deposits and checks per the bank statement. If your book adjusted balance per your books equals the adjusted balance per the bank statement then your books and the bank statement are in agreement. If they do not balance then you have a error somewhere. Also you need to post things to your books that are in your bank statement but are not yet on your books and you need to do a correcting entries or adjussting entries for any errors made by the company to get your book balance to agree with the bank balance. |
||||
| Question Tools | Search this Question |
Add your answer here.
Check out some similar questions!
If the bank make a mistake of recording a deposit of 87 dollars as 78 dollars, this error will be shown in the bank reconciliation as : Ans: deduction of 9 dollars to the bank balance I think this should be the correct ans, isn't it? Cos the ans in my book was addition of 9 dollars to the bank...
If the bank mistakenly deducts a check from an account would I be adding or subtraction the amount in the bank reconciliation under the balance per books section?
If a check for $2,420.00 was returned with the statement was recorded as $2,024.00, under which heading do I make changes. I know I need to make it for $360.00 but do I do under balance per bank, or balance per books?
Can you help me out to solve this reconciliation. "ABC Company's bank statement for the month ended January 31 showed a balance per bank if $8000. The company's cash balance at January 1st was $3655. Other information is as follows: 1. Cash receipts for January were $87,679 of which $5200...
Ok, My question is how do you prepare a bank reconciliation without a book balance? EXAMPLE: Bank Statement Balance August 31 24,500 Book Balance (Before Adjustments) ? Outstanding Checks 2,700 NSF Checks 400...
View more questions Search
|
