Bank rec

Question 1

Steps to reconcile:

Answer 1

1. tick off bank statement to cash book
2. Minus the balance b/f and the opening balance on SoA - if there is a difference see if any numbers make it up
3. update cash book with items on BS that aren’t shown in cash book
4. produce the reconciliation - additions & less = those in the cash book but not in bank

Question 2

What differences should there be?

Answer 2

• unpresented cheques
  -outstanding lodgements

Question 3

What are outstanding lodgements?

Answer 3

-money paid in, but hasn’t been cleared

Question 4

What are unpresented cheques?

Answer 4

-money paid out, but has not cleared to the bank yet

Question 5

How would overdraft fees be recorded in bank general ledger?

Answer 5

-Credit entry

Question 6

What are the reasons for completing a bank rec?

Answer 6

-help identify errors
-manage money more effectively
-calculate up to date bank balance

Question 7

If money is paid out of our bank, how will this appear on the bank statement?

Answer 7

-Debit entry