How to prepare a bank reconciliation statement for the month.


Answered 8 months ago
Answered 8 months ago
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Bank Reconciliation is an internal control procedure that matches the cash balance of the organization's accounting records vs the bank statement. It is important because it ensures that the cash reporting is accurate.

The following are possible transactional and recording errors that should identified:

Adjustment on Bank Balance:

  • Deposit in transit (add)
  • Outstanding checks (less)
  • Corrections on bank errors

Adjustments on Book Balance:

  • Notes and interest collected (add)
  • NSF checks (less)
  • Bank service charge (less)
  • Corrections on book errors

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