Bank Reconcilation

[Shargeel]

What Are The Basic Procedure Of Preparing Bank Reconcilation Statement And What Balance Is Taken First While Poreparing That Statement.if Both Balance Of Bank Statement And Cash Book Are Given.

[Sonal]

What Are The Basic Procedure Of Preparing Bank Reconcilation Statement And What Balance Is Taken First While Poreparing That Statement.if Both Balance Of Bank Statement And Cash Book Are Given.

hi shargeel,
BRS is very interesting topic.
BRS: a statement prepared to match or reconcile the bank balance given in the bank statement with the balance given in the books maintained by the entity.

if we start our solution from 'balance as per cash book', then,
Balance as per cash book -----
Add: cheque issued but not presented ------
Add: standing order ------

Less: cheques deposited in bank but not credited------
Less: bank charges ------
Balance as per bank statement -----

and if we start from balance as per pass book, then
Balance as per bank statement -------
Add: cheques deposited in bank but not credited------
Add: bank charges ------

Less: cheque issued but not presented -------
Less: standing order -------
Balance as per cash book -------

for details, you can refer GTG SG E4.

[Shargeel]

Thanks sonal with all of ur frndz help and guideline i have passed my f3 paper and i thank all of them who helps me to get through this.

[Sonal]

congratulations Shargeel for passing F3. How much you have scored in it? which papers you will give in Dec 08?

All the bests
Sonal

[Shraddha]

Hello,

It doesnt matter what balance is taken first i.e Balance as per Bank or Cash book, as long as you are able to reconcile. You need to use the method which suits you and that you can remember, (considering what is asked in the exam and get to the correct answer) I would choose to take the Balance as per Bank Statement first and work down, as i find working this way easier.

Eg

Balance per Bank Statement

Less Unpresented payments

Add Uncredited receipts


Balance as per cash book/Bank Control

Regards

Shraddha

[Archibong Ita]

Can one enter purchase of Asset in the cash Book and transfer to general ledger?
Or post the asset in journal entry before transferring it to balance sheet for information?
Can it posted to personal ledger?

[Deepak82]

Hi Archibong,

I am sorry I have not understood your question very clearly. However I feel that below information may help you to solve your doubt.

Whenever we purchase assets such as property, plant and equipment, motor vehicles etc, we debit the respective asset account. This is because our assets have increased. A corresponding credit goes to the cash account if purchased in cash or payables account if purchased on credit.

Journal entries

Dr Assets A/c X
Cr Cash Account X
(Being asset purchased in cash)

Dr Assets A/c X
Cr Payables Account X
(Being asset purchased on credit)

After passing the above entry, balance in asset account in statement of financial position (SOFP) increases.

In case you still have doubt please let me know.