Understanding Cash and Bank Reconciliation for Financial Management
Learn how to prepare and record bank reconciliation entries, adjust bank and book balances, and handle outstanding checks, deposits in transit, and more for effective financial management.
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Presentation Transcript
Accounts in English CASH & Bank Reconciliation
CASH & Bank Reconciliation 1. Prepare a bank reconciliation and explain its purpose. 2. Record entries of bank reconciliation.
Prepare a bank reconciliation Adjustments the Bank Balance: Outstanding checks. Deposit in transit. Service charges (SC). NSF (non-sufficient fund) checks Interest collected by banks.
Bank Reconciliation Adjustments to the bank balance Cash balance per bank statement (before adjusted) xx + Deposit in transit xx -outstanding checks (xx) + or -Bank errors xx Adjusted cash balance per bank xx
Bank Reconciliation Adjustments to the book balance Cash balance per books (before adjusted) + Notes receivable and interest collected by banks -Collection fee -Printing checks -Service charges (SC) -NSF (non-sufficient fund) checks +or - Book errors Adjusted cash balance per books xx xx (xx) (xx) (xx) (xx) xx XX
