Question

how do you prepare a bank reconcilliatiton?

Answer 1

1. First step is to compare the balance of both bank column of cash book and bank statement.

2. If there is any difference found then compare the debit side of cash book with credit side of statement and credit side of cash book with debit side of statement.

3. Find out the entries that are missed in cash book to enter and make adjustment for them.

4.Correct the errors if there is any error occur.

5. Find out the correct or revised balance of cash book..

6. Now with revised cash balance, start the bank reconciliation.

7. add cheques issued but not presented for payment to creditors and deduct the cheques paid into bank but not yet collected from debtors.

8. The resulted figure will be matched with bank statement.