FAC1501
Bank Reconciliation
Learning Unit 8
,Bank Reconciliation
Bank reconciliation could be seen as an extension of the bank statement
Balance the bank account in the books of the business with the bank
statement
Two steps:
the business's records are updated to account for actual transactions
recorded by the bank statement, and
record those transactions to which the bank must still attend to in the
bank reconciliation statement
Favourable bank balance - debit side of the bank account & credit side of
bank statement.
Unfavourable or overdrawn bank balance - credit side of the bank
account & debit side of the bank statement (indicated by DT, DR or OD).
,Bank Reconciliation - procedure
If a bank recon was completed for the previous month the bank
statement must first be compared with that bank recon to
ascertain whether the outstanding items and corrections have
been done by the bank.
Compare items on the debit side of the bank recon with entries on
the debit side of the bank statement and credit entries on the
recon with credit entries on the statement.
Compare the amounts in the cash receipts journal for the current
month with the entries on the credit side of the bank statement.
Compare the amounts in the cash payments journal for the
current month with entries on the debit side of the bank statement
, BENSON TRADERS
Bank Reconciliation Statement as at 30 June 20.0
Dr Cr
R R
Favourable balance per bank statement 11 350
Deposit not yet credited
(deposited 1/7/20.0) 2 000
Cheques not yet presented for payment
No 11 – dated 23/6/20.0 (Donation) 200
No 13 – dated 30/6/20.0 (ABC Store) 350
Favourable balance per bank account 12 800
13 350 13 350
ADDITIONAL INFORMATION
(a) S Swan and P Saxo are debtors of the business
(b) The deposit on 30/07/20.0 is in respect of rent received.
Bank Reconciliation
Learning Unit 8
,Bank Reconciliation
Bank reconciliation could be seen as an extension of the bank statement
Balance the bank account in the books of the business with the bank
statement
Two steps:
the business's records are updated to account for actual transactions
recorded by the bank statement, and
record those transactions to which the bank must still attend to in the
bank reconciliation statement
Favourable bank balance - debit side of the bank account & credit side of
bank statement.
Unfavourable or overdrawn bank balance - credit side of the bank
account & debit side of the bank statement (indicated by DT, DR or OD).
,Bank Reconciliation - procedure
If a bank recon was completed for the previous month the bank
statement must first be compared with that bank recon to
ascertain whether the outstanding items and corrections have
been done by the bank.
Compare items on the debit side of the bank recon with entries on
the debit side of the bank statement and credit entries on the
recon with credit entries on the statement.
Compare the amounts in the cash receipts journal for the current
month with the entries on the credit side of the bank statement.
Compare the amounts in the cash payments journal for the
current month with entries on the debit side of the bank statement
, BENSON TRADERS
Bank Reconciliation Statement as at 30 June 20.0
Dr Cr
R R
Favourable balance per bank statement 11 350
Deposit not yet credited
(deposited 1/7/20.0) 2 000
Cheques not yet presented for payment
No 11 – dated 23/6/20.0 (Donation) 200
No 13 – dated 30/6/20.0 (ABC Store) 350
Favourable balance per bank account 12 800
13 350 13 350
ADDITIONAL INFORMATION
(a) S Swan and P Saxo are debtors of the business
(b) The deposit on 30/07/20.0 is in respect of rent received.
