Question

Hello, right now we're studing fraud, internal control and cash in Accounting. I am struggling to understand how to find adjusted cash balance per book and per bank then putting it into a tabular analysis.

Answer 1

This is bank reconciliation statement in tabular form, which is prepared by taking one balance initially and then making addition or subtraction with all mismatched transactions to get the other balance.

Example: Suppose per book balance is 50,000 debit and per bank balance is 42,000 credit.

Mismatched: On 12/03/2018 check deposited of $10,000 not entered in bank book as on 31/03/2018. On 13/03/2018 check issued of $2,000 not cleared from bank as on 31/03/2018.

Bank reconciliation

As at 31/03/2018

Items	Amount
Per book balance	$50,000
Less: Check deposited but not entered in bank book	$10,000
Add: Check issued but not cleared from bank book	$2,000
Per bank balance	$42,000

Note: balance in the bank book as credit actually indicates debit balance of account holder.