How Do You Prepare A Bank Reconciliation Statement?
In order to know–to the penny–how much money there is in your checking account, a reconciliation is in order. It is best to reconcile your checking account on a monthly basis, and the best time to do so is as soon as your receive your bank statement. Whether you get a paper bank statement or a paperless one online, the process of reconciling the account is the same. Once you have done a reconciliation a few times, it becomes quite easy. Step 1 jQuery(document).ready(function(){ jQuery(‘#jsArticleStep1 span.image a:first’).attr(‘href’,’http://i.ehow.com/images/GlobalPhoto/Articles/4793496/119160_Full.jpg’); }); Bring your checkbook register up to date. Make sure that you have entered any ATM withdrawals or deposits. If your banking institution charges a fee, deduct that fee from your account. After you have entered all of the activity, add in the deposits and deduct the checks to come up with an ending balance. Step 2 Compare the bank statement with your check register and check off i
To Prepare a Bank Reconciliation Statement (a) Compare transactions that appear on both Cash Book and Bank Statement (b) Update Cash Book from details of transactions appearing on Bank Statement (c) Balance the bank columns of the Cash Book to calculate the revised balance 5 Complete a Bank Reconciliation Statement (a) Enter correct date of the statement (b) Enter the balance at bank as per the Cash Book (c) Enter details of unpresented cheques (d) Enter sub-total on reconciliation statement (e) Enter details of bank lodgements (f) Calculate balance as per Bank Statement Page 2 THE NEED FOR AN ACCURATE CASH BOOK Most organisations keep a record of their cash and bank transactions in a cash book (see Chapter 13). The cash book contains a record of both the cash account and the bank account and shows the balance in each account at the end of a period. Once the cash book has been balanced off it is usual to check the details with the records of the firm’s bank transactions as recorded by
