Bank Reconciliation Statement

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HKCEE Principles of Accounts - Form 4
1. Basic Accounting
2. Trading and Profit and Loss Account
3. Balance Sheet
4. Books of Original Entry
5. Cash Book
6. Capital and Revenue Expenditure
7. Depreciation of Fixed Assets
8. Bad Debts and Provision for Bad Debts
9. Other Adjustments for Final Accounts
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HKCEE Principles of Accounts - Form 4
10. Bank Reconciliation Statements
11. Errors and Suspense Accounts
12. Control Accounts
13. Incomplete Records - Final Accounts
14. Incomplete Records - Stock Valuation
15. Income and Expenditure Accounts
16. Manufacturing Accounts
EXIT
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HKCEE Principles of Accounts - Form 5
1. Accounting Ratios
2. Accounting Concepts and Conventions
3. Partnership Accounts - Final Accounts
4. Partnership Accounts - Goodwill
5. Partnership Accounts - Revaluation
6. Partnership Accounts - Realization/Dissolution
7. Company Accounts - Final Accounts
8. Company Accounts - Issue of Shares
9. Incomplete Records - Cash Shortage
EXIT
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Bank Reconciliation Statement
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I. Why?
The bank balance as per cash book may not be
equal to the bank balance as per bank statement
at the month end because of time lag in
depositing receipts or autopay service from the
bank. A Bank Reconciliation statement (BRS) can
provide an arithmetical proof to show the reasons
for the difference.
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II. How?
1. No adjustments are made in bank balance in
cash book
Only shown in BRS starting with cash book balance
1. bank interest received bank statement add
2. credit transfers bank statement add
3. bank charges bank statement deduct
4. dishonored cheques bank statement deduct
5. standing order to pay expenses bank statement deduct
6. autopay to pay expenses bank statement deduct
7. unpresented cheques cash book add
8. lodgments not yet recorded by banks cash book deduct
9. uncredited cheques cash book deduct
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Reconciling the bank balances
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2. Adjustments are made in the bank balance in
cash book
Only shown in BRS starting with cash book balance
1. bank interest received bank statement Dr bank in cash book
2. credit transfers bank statement Dr bank in cash book
3. bank charges bank statement Cr bank in cash book
4. dishonored cheques bank statement Cr bank in cash book
5. standing order to pay expenses bank statement Cr bank in cash book
6. autopay to pay expenses bank statement Cr bank in cash book
7. unpresented cheques cash book add in the statement
8. lodgments not yet recorded by banks cash book deduct in statement
9. uncredited cheques cash book deduct in statement
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Updating bank balance in cash book
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Reconciling the bank balances
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3. Adjustments are made in the bank overdraft in
cash book
Only shown in BRS starting with cash book bank overdraft
1. bank interest received bank statement Dr bank in cash book
2. credit transfers bank statement Dr bank in cash book
3. bank charges bank statement Cr bank in cash book
4. dishonored cheques bank statement Cr bank in cash book
5. standing order to pay expenses bank statement Cr bank in cash book
6. autopay to pay expenses bank statement Cr bank in cash book
7. unpresented cheques cash book add
8. lodgments not yet recorded by banks cash book deduct
9. uncredited cheques cash book deduct
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Updating bank balance in cash book
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Reconciling the bank balances