Bank Reconciliations

Question 1

what are bank reconciliations

Answer 1

correcting errors and omissions in the bank general ledger

Question 2

example of error

Answer 2

1 amount on cheque
another in accounting records

Question 3

example of omission

Answer 3

bank charges on statements not in accounting records

Question 4

examples of timing differences

Answer 4

outstanding cheques recorded in accounting records but not yet in bank statement

balance of bank statement will differ from that in general ledger

Question 5

if we are in debit what type of account are we TO the bank

Answer 5

credit account

Question 6

if we are overdrawn what type of account are we TO the bank

Answer 6

debit

Question 7

adjustments for bank charges ommitted

Answer 7

DR bank charges
CR bank

Question 8

adjustment for outstanding cheques

Answer 8

less from bank statement

Question 9

adjustment for outstanding lodgements

Answer 9

add to bank statement balance

Question 10

bank reconciliation layout

Answer 10

bank as per bank statement
+ outstanding lodgments
- outstanding cheques
= balance as per bank account