Interested to Buy Any Domain ? << Click Here >> for more details...
Answer Posted / sudhakar
How to Prepare a Bank Reconciliation Statement:
To prepare the bank reconciliation statement, the following rules may be useful for the students:
Check the cash book receipts and payments against the bank statement.
Items not ticked on either side of the cash book will represent those which have not yet passed through the bank statement.
Make a list of these items.
Items not ticked on either side of the bank statement will represent those which have not yet been passed through the cash book.
Make a list of these items.
Adjust the cash book by recording therein those items which do not appear in it but which are found in the bank statement, thus computing the correct balance of the cash book.
Prepare the bank reconciliation statement reconciling the bank statement balance with the correct cash book balance in either of the following two ways:
(i) First method (Starting with the cash book balance)
(ii) Second method (Starting with the bank statement balance)
First Method (Starting With the Cash Book Balance):
(a)
If the cash balance is a debit balance, deduct from it all cheques, drafts etc., paid into the bank but not collected and credited by the bank and added to it all cheques drawn on the bank but not yet presented for payment. The new balance will agree with bank statement.
(b)
If the bank balance of the cash book is a credit balance (overdraft), add to it all cheques, drafts, etc., paid into the bank but not collected by the bank and deduct from it all cheques drawn on the bank but not yet presented for payment. The new balance will then agree with the balance of the bank statement.
Second Method (Starting With the Bank Statement Balance):
(a) If the bank statement balance is a debit balance (an overdraft), deduct from it all cheques, drafts, etc., paid into bank but not collected and credited by the bank and add to it all cheques drawn on the bank but not yet presented for payment. The new balance will then be agree with the balance of the cash book.
(b) If the bank statement balance is a credit balance (in favor of the depositor), add to it all cheques, drafts, etc., paid into the bank but not collected and credited by the bank and deduct from it all cheques drawn on the bank but not yet presented for payment. The new balance will agree with the balance of the cash book.
Read more at http://accounting4management.com/bank_reconciliation_statement.htm#1Pvzu3YPaSbRCl8l.99
| Is This Answer Correct ? | 9 Yes | 3 No |
Post New Answer View All Answers
Expand-------BANT
why the closing stock is not considered in drawing trail balance.... Are there any other items like the above
I WANT ACCOUNT ASSISTANCE INTERWIEV QUETION IN L&T
What is PE ratio formula ?
what tax will be on puchasing of sweets and is necessery to use form 38.
my boss (Managing Partner of a firm) promoted along with his wife a private limited company. he and she spent some Rs. 75,000/- (approx) for the promotion of the company. i know that they usually fall under the head of preliminary expenses. but after receiving the certification of incorporation of the company how shall i repay them to the promoters i.e. what is the accounting entry in the books (initial books of accounts) for the expenditure incurred. they have kept in hand 5,00,000/- each to meet the expenses and they were allotted shares of equal to the amount. can i allot shares for a consideration of cash from and excluding the preliminary expenses. can i take cash towards the share application money (being the cash more than Rs. 20,000/-) as the company has not opened a bank account yet. please give me the detailed answer with journal entries that can be entered in tally. thank you.
i have interview in KVB on 12-12-08. so Please send me some questions asked in previous interviews contucted by KVB?
What is TDS entry for a Firm? as previous years TDS is shown as opening balance in the books of the firm in current year and i don,t want in C.Y as its claimed in the Computation of Previous Years???? So what is the A/C ing entry
wHAT ARE EVENTS
What is the difference between reserve and provision.
whether unsecured loans written off can be transferred directly to capital reserve without crediting it to profit and loss account
I am going to attend an interview for the post of jr. Accounts Officer in airport authority of india,pls help me to prepare for the interview??
what is data entry? what is report generation ?in accounting how it is used .
Suppose My received Interest Income is 24934.59 And for the same time my Bank Charge total is 7785.19. Now the total Bank Charge will be deducted from Interest Income and the amount of (24934.59-7785.19)=17149.40 will be withdrawn to deposit in govt. Account.What will be the Journal Entry for 17149.40. Here, Already Bank Charge 7785.40 is Already Debited and 24934.59 is already credited in Journal.
how we could adj. the entries of prop. & firm in merging time
