Basamaekul

 Profile Answers by Basamaekul 

• Jun 29th, 2010

 

There are two spearate entries that one must make to reconcille the bank statement to the company's books.  The first is the increases to the cash account that the company has not recorded.  An example of this would be notes collected directly by the bank on the company's behalf.  Therefore, one would debit cash and credit the necessary accounts; in this case, the notes receivable and interest revenue accounts.

The other entry would be anything that decreases the cash balance.  Examples of this are bank service charges and non-sufficient-fund (NSF) checks.  In this case, one would debit the accounts receivable for the NSF checks and the expense account that they use to track bank service charges and credit cash for the total.

There are certainly other things that can increase/decrease the cash account when reconcilling the bank statement to the company's books, this is just an example.

shabbu

• Jun 21st, 2013

 

bank statement reconciliation means differentiate between the bank book to cash book .......... that means cash book amount bank book amount should verify