| |
|
Bank Reconciliation Statement
Bank Statement
- Prepared by the Bank
- Business Prepares own Cash Book
- Cash Book and Bank Statement must Equal
- If 2 Documents do not equal, you MUST prepare a Bank Reconciliation statement
Timing Differences
- Unpresented cheques = cheques issued and not yet recorded in the bank statement
- Outstanding Lodgements (Uncredited Cheques)= amounts paid into the bank, not yet recorded in the bank statement (paying-in slip issued)
Updating Cash Book
Record items in bank Statement not yet included in Cash Book
Eg: (IN)
- BACS (Bankers Automated Clearing Services) received by the bank, payment from customers.
- Dividend received by the Bank
- Interest received
Updating the Cash Book
Payment – Money Out
- Standing order
- direct debit payments
- Bank Charges and Interest
- Dishonoured Cheques
Bank Reconciliation Statement
Include items in Cash Book not yet appearing in Bank Statement E.g. Uncredited Cheques / Unpresented Cheques
NOTE: Balance must be EQUAL to Balance in Adjusted Cash Book |
