Bank Reconciliation statement is a statement which shows the
reason for difference between bank statement received from bank and bank book
balance on a particular date say end of every month or any other
date…
Here we tried to find out the reason for the difference. And
ensure that such reasons are genuine .Most of the small scale companies
will do their bank reconciliation at the end of each month and make agree with
the balance of bank statement. But in large scale companies
required to do the reconciliation every day.
In short duration between two bank reconciliation and
frequency of bank reconciliation will vary depends on the
number and volume of bank transactions in that particular
organization or company.
Bank reconciliation gives a clear picture regarding the
banking transactions of that company. It shows that how many cheques are
issued but not cleared, how many cheques are received but not
deposited in the bank, details of stale cheque etc.
Some of the common reasons for the preparation of bank
reconciliation statement are as follows:-
1) C heque received from customer but not submitted in bank for
clearance or submitted but bank not
credited the amount in your Bank Account.
2) Cheque received and deposited in bank Account but same is not
recorded in our books of Accounts.
3)Cheque issued to suppier or party but not submit by
supplier in bank.
4) Bank charges not recorded in books of accounts.
5) Bank interest or dividend ect. received in
bank but not recorded in books of accounts.
6) Any transaction with bank not recorded in books of accounts.
7) Cheque issued and party submitted in bank but
dishonoured .
Excellent!
ReplyDelete