Bank Reconciliation

Question 1

Bank Statement

Answer 1

This is a statement issued by the bank to the business showing the movement of money in and out of its bank account

Question 2

Unpresented Cheques

Answer 2

Cheques that have been sent but have not yet gone through the recipient’s bank account

Question 3

Bank Lodgement / Uncredited Cheques

Answer 3

This is money or cheques received that has not yet reached the business bank account

Question 4

Standing Order

Answer 4

Instructions given to the bank by a business for a specified amount to be automatically deducted from their bank account at a specified time

Question 5

Bank Charges

Answer 5

Charges made by the bank for providing services of a bank account to the business

Question 6

Dishonoured Cheques

Answer 6

When a bank dishonours a cheque, it will not pay up on the cheque because there are insufficient funds in the drawer’s account