it is a statement containing add and less....it is prepared
to show the difference between pass book and cash book.
it has overdraft, favourable and unfavourable methods.
Bank Reconcilation is a statement by which we can come to
know the reason of amount difference between to Accounts
(may be bank & Pass book or debtors/Creditors & Our account)
as on a specific date for a specific period
It is the statement prepared to reconcile the differences
between bank column in cashbook and bank column in
statement prepared by bank relating to a particular period
in time.
Bank Reconciliation statement is a statement prepared on a
particular date to reconcile the difference between the
balances shown by bank pass book and Bank column of cash
book and after finding those causes for the differences
between the balances of both the books these balances are
eliminated to maintain proper records.
Bank Reconcilation Statements are prepared on daily,
monthly, quarterly as per the organisation requirment for
analysis of cash flow in the organisation.
Bank reconcilation is done between bank statement and cash
book statement to assertain the differences between both as
on particular date.
differences might be 1)Bank charges 2) cheque issued but
not cleared 3)cheque deposited but not cleared 4)intrest on
savings account 5)ECS receipts and payments.
Bank reconsilation statement shows the difference between
the cash book n passbook.
Pass book is written by the bank.
If we want to know clear i.e. If cash book increases, pass
book decreases n vice-versa.
if the balance of the supplies account on January 1 was
$500, supplies purchased during the year were $1750, and
the supplies on hand at December 31 were $300, the amount
for the appropriate adjusting entry at December 31 is?
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