Some points to consider when answering Bank Reconciliation question
1. Pre-adjustment Bank Reconciliation Statement (BRS) is the one of last month.
2. When preparing the BRS of the current month, you use the closing balances of the Bank
Account and the bank statement NOT the opening balances.
3. The main aim of BRS is to ensure that the bank Ledger account balance is the same as
the post-adjusted BRS.
4. If you are provided with the opening balance of the Bank ledger account then you need
to first record the totals of the CRJ (Dr) and CPJ (Cr) in the Bank ledger account before
you can record the adjustment.
5. If you are provided with the closing balance of the Bank ledger account then you need
not to record the totals of the cash journals in the Bank ledger account, but you only
need record the adjustments.
6. Useful steps
a. Compare the bank statement with the cash book (For deposits make use of dates
and for cheques make use of cheque numbers)
b. Tick items that appears on both the bank statement and the cash books
c. Verify that all the ticked items have similar amounts, if amounts differs then
expect an explanation of the differences to be included in the additional
information (which implies that you will required to adjust accordingly)
1. Pre-adjustment Bank Reconciliation Statement (BRS) is the one of last month.
2. When preparing the BRS of the current month, you use the closing balances of the Bank
Account and the bank statement NOT the opening balances.
3. The main aim of BRS is to ensure that the bank Ledger account balance is the same as
the post-adjusted BRS.
4. If you are provided with the opening balance of the Bank ledger account then you need
to first record the totals of the CRJ (Dr) and CPJ (Cr) in the Bank ledger account before
you can record the adjustment.
5. If you are provided with the closing balance of the Bank ledger account then you need
not to record the totals of the cash journals in the Bank ledger account, but you only
need record the adjustments.
6. Useful steps
a. Compare the bank statement with the cash book (For deposits make use of dates
and for cheques make use of cheque numbers)
b. Tick items that appears on both the bank statement and the cash books
c. Verify that all the ticked items have similar amounts, if amounts differs then
expect an explanation of the differences to be included in the additional
information (which implies that you will required to adjust accordingly)
