Bank Reconciliation Statement

1
Chapter 25

• Bank Reconciliation Statement

2
Aims

• To ensure that the difference between the balance
  in the Bank Statement and the balance in the Cash
  Book is due principally to the timing difference
  in entering items
• To discover errors, if any, in either the
  bankers record (Bank Statement) or the
  depositors record (Cash Book)

3
Reasons for timing differences
CBltBS
-

CBgt BS
-

4
Reasons for timing differences
CBltBS
-

CBgt BS
-

CBgt BS
-

5
Reasons for timing differences
CB gt BS
-

CBgt BS
-

6
Reasons for timing differences

• (a) and (b) in the Cash Book but not in the
  Balance Statement
• (c) to (g) in the Bank Statement but not in the
  Cash Book

7
Types of questions

• Prepare a Bank Reconciliation Statement without
  updating the Cash Book

8
Types of questions

• Prepare a Bank Reconciliation Statement after
  updating the Cash Book

9
Types of questions

• Bank overdraft