Bank Recs Flashcards
1
Q
types of bank recs
A
Bank to book
Book to bank
Bank and book to true
2
Q
Adj made to bk bal to arrive at book income
A
Deposits in transit
Cash on hand ( not Petty cash)
Outstanding checks
Bank errors
3
Q
adj made to get to bk bal
A
Interest earned Notes collected Svc charges Nonsufficient funds (NFS) Checks Errors in company's records
4
Q
deposits in transit
A
Deposits made by the co not cleared by the bank
5
Q
Outstanding checks
A
Ckecks writen and mailed by co not clear by bank
6
Q
Cash on Hand
A
reflects P?C on hand and undeposited cash receipts
7
Q
Purpose
A
Rec bk acct and the GL to the true cash Helps identify errors Establish correct End bal Provides info for jE reduce cash theft in the reconciler
8
Q
Bk rec
A
bank bal per bk stmt \+ Dep in transit \+ Cash on hand -Outstanding checks -+errors made by bank =True cash bal
9
Q
Bal per GL
A
Bal per GL \+ Interest earned \+note collected -svc charges -NSF checks \+- errors made on the books = True cash balance
