Bank Reconciliation

Question 1

[Bank Reconciliation]

Benefits of bank reconciliation

Answer 1

• Assist in discovering fraud and embezzlement
• Detects errors in the cash book or bank statement
• To check the accuracy of transactions recorded in the bank statement and cash book
• Unpresented cheque and uncredited bankings can be identified

Question 2

[Bank Reconciliation]

Differences between direct debit and standing order

Answer 2

Direct debit
- Amount varies
- Recipient triggers
- Occur irregularly

Standing order
- Fixed amount
- Bank triggers
- Fixed intervals