Bank Reconciliation Flashcards
What is the bank account used by a business?
A current bank account
What does a cash register’s ‘X’ reading outline?
The sales for the day and breaks this amount down into cash and credit sales and then further how the amounts for the cash sales were received.
What does the daily cash-up process involve?
Generating an ‘X’ reading and reconciling this with the amount that is in the register and then (ideally) depositing the excess of the imprest amount.
How are deposits recorded on bank statements?
As credits
How are payments recorded on bank statements?
As debits
What is step 1 of the bank reconciliation process?
The credits on the bank statement are compared with the bank column on the cash receipts journal.
What is step 2 of the bank reconciliation process?
The debits on the back statement are compared with the bank column on the cash payments journal.
What is step 3 of the bank reconciliation process?
Differences identified as requiring amendment in the CRJ or CPJ are recorded and the journals are totalled. The journals are then posted to the GL.
What is step 4 of the bank reconciliation process?
Compile the bank reconciliation statement.
What is the bank reconciliation statement?
An internal document used to record outstanding or unresolved items to be corrected by the bank.
What is step 5 of the bank reconciliation process?
The monthly reconciliation statement is interpreted and outstanding items are investigated.
