Friday, 30 December 2011

Bank Reconciliation Statement

                                    BANK RECONCILIATION STATEMENT


A form that allows individuals to compare their personal bank account records to the bank's records of the individual's account balance in order to uncover any possible discrepancies.






Bank reconciliation statement helps businesses to reduce the amount of unutilized cash in suspense accounts. By adding deposits in transit, deducting outstanding business checks and adding or deducting bank errors, Bookkeeping Services India work closely with you to adjust the bank reconciliation statement in your bank statement and also preparefinancial statement.






The following was obtained from the records of ABC Computers of 30 September 2009
Bank reconciliation statement on 31 August 2009 (Previous month)
££
Balance as per bank statement12200
Outstanding deposit:2100
Total14300
Outstanding cheques:No: 1002200
No: 106740
No: 109540(3480)
Total10820 (Opening balance for cash book)
Cash Book for September 2009
DateDetailsAmount (£)ChequeDateDetailsAmount (£)
3Sales and VAT37001103Water and Electricity
4A Jones2400and VAT400
10Deposit31001114S Payne21100
15Sales and VAT8501129J Kooste350
30Deposit167011310Purchases and VAT2700
11412Salaries4200
115Donation500
11620Purchases and VAT3150
118J Goosen600
Pencil Total11720Pencil Total33000
Bank Statement for September 2009
DebitCreditBalance
Date£££
1Balance12200Cr
4Cheque 111211008900Dr
Deposit37005200Dr
Deposit21003100Dr
5Deposit2400700Dr
SF60760Dr
DO14002160Dr
10Cheque 11320704230Dr
Cheque 1104004630Dr
Deposit31001530Dr
Cheque 1125302060Dr
Cheque 61421804240Dr
CB204260Dr
Cheque 1095404800Dr
SF1004900Dr
12Cheque 1155005400Dr
15Deposit8504550Dr
20Cheque 1186005150Dr
Deposit40501100Dr
Additional information:
  1. Cheque 100 was drawn on the 10 March 2008 to pay a payable. (This cheque is therefore regarded as "stale" for this example - some countries may have different requirements for stale cheques)
  2. ABC Computers signed a debit order for the monthly instalment on their motor vehicle bought from Speedy Car Sales.
  3. Cheque 614 was not drawn by ABC Computers. (Therefore must be taken out of the bank reconciliation)
  4. According to the paid cheques, cheque 112 was drawn for £350 and cheque 113 was drawn for £2070.
  5. A receivable deposited the amount of £4050 owed by him directly into ABC Computers bank account.
Required:
  1. Complete the cash book for September 2009 by starting with the pencil totals.
  2. Prepare the bank reconciliation statement as at 30 September 2009.

[edit]Solution

Compare all amounts in the cash book for September 20.9 with the amounts that are present on the bank statement to see if they are the same. All correct amounts should be crossed off on both statements as they do not contain errors. Any erroneous amounts should be marked so that they can be addressed.
Erroneous amounts may include:
  1. Reversed numbers i.e. 164 to 614
  2. Outstanding cheques
  3. Payments received that have not yet been reflected
  4. Errors on cheques
  5. Date discrepancies (though amounts and figures may be correct)
Prepare the following two statements for any bank reconciliation:
Cash book (Bank account) of ABC ComputersDrCr
Balance b/f10820
Pencil total11720Pencil total33000
Payable (Cheque 100)2200Speedy Car Sales1400
Purchases and VAT (Cheque 113)630Bank Charges and VAT (60+20+100)180
Receivable4050
Balance c/f5160
3458034580
Balance b/f5160
Bank reconciliation statement
Bank reconciliationDebitCredit
Balance as per bank statement1100
Erronerous cheque (614)2180
Error on cheque 112 (£530-£350)180
Outstanding deposit1670
Outstanding cheques:
Cheque 1144200
Cheque 1163150
Cheque 106740
Credit balance as per cash book5160
91909190

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