A bank reconciliation is the comparison of the bank statement you get from your bank with the business records concerning the bank account.
The bank statement comes once a month normally and shows all deposits, payments, etc.
You compare this to your cashbook (or cash receipts journal and cash payments journal) and look for any discrepancies.
If there are discrepancies, you draw up a bank reconciliation statement. This statement is for your own records and can also be sent to the bank so they correct any errors regarding the business bank account.
Some of the items that cause these discrepancies include:
- Bank charges, which may include Commission on Transaction(COT), cost of cheque book etc
- Credit transfer
- Dishonoured cheque
- Uncredited cheques
- Unpresented cheques etc.
***Items of a bank reconciliation statements will be explained in the next class.
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Ascent AutoRecon© Banking reconciliation software helps in automatic matching in several areas of bank reconciliation, such as traditional bank reconciliation and reconciliation of foreign currency accounts, direct payments, cash, card terminals (Visa, MasterCard, Eurocard) and bank transfer.
BalasAscent AutoRecon© Banking reconciliation software helps in automatic matching in several areas of bank reconciliation, such as traditional bank reconciliation and reconciliation of foreign currency accounts, direct payments, cash, card terminals (Visa, MasterCard, Eurocard) and bank transfer.
BalasThis is cool. Thanks for the writeup.
Balas