Archive | Bank Reconciliation Statement

Here we detail about the two ways for preparing the bank reconciliation statement, i.e.,  (i) Without Adjusting Cash book Balance. (ii) After Adjusted Cash Book Balance. Now we shall move to study the steps taken in preparation of bank reconciliation statement in each of the above cases. (I) Preparation of Bank Reconciliation Statement without Adjusting Cash Book Balance: Under this [...]

Here we detail about the eleven major causes of difference between cash balances of bank and cash book. (i) Cheques Issued but not yet Presented for Payment: When the cheque is issued, the cashier/accountant of the business enterprise records this transaction on the credit side of the cash book under the bank column immediately. The effect of this recording is [...]