Question

4) When you are reconciling transactions, what can you use as proof of lodgement? (100–120 words)

5) List and describe (50–80 words) five types of special transactions.

Answer 1

ANSWER-4:

Usually the balance in the bank statement and bank balance in the cash book is different. Thus it is important to use bank reconciliation statement as proof of lodgement. Although will keep their transaction records in the cash book, however it is vital to reconcile it with bank statement to identify errors which were made either in the company’s cash book or in the records of the bank. Rectifications can be made using this lodgement proof. For instance, when money is deposited at a bank, the bank teller will check the cash, credit card and cheques details to ensure they balance. Afterwards the teller stamps a copy of the deposit slip which can be used as evidence that the deposit has been made. The stamped deposit slip acts as a proof of lodgement when which must be presented at the accounts section where it will be checked and filed.