reconcilliations Flashcards
what is a contra entry
where a customer is also a supplier so instead of owing each other money, the balances are netted off
what is the double entry for contra entry
DR payables
CR receivables
what is the double entry for a dishonoured cheque/receipt
DR receivables account
CR cash
double entry for when a cash refund is given
DR receivables
CR cash
what are the three differences between bank statement and balance on cash ledger
- unrecorded items in cash at ledger bank account (ledger)
- timing differences (bank rec)
- errors
do we add or minus unpresented checks/ uncleared payments on the bank reconciliation statement
minus
do we add or minus outstanding/ uncleared lodgments on the bank reconciliation statement
add
do we debit or credit dishonoured checks on the bank ledger account
credit
do we debit or credit bank charges on the bank ledger account
credit
do we debit or credit bank interest received on the bank ledger account
debit
what is a dishonoured check?
customer may pay us a cheque which we pay into our bank but funds aren’t sufficient in customers account for bank to make transfer of funds
what is a reconciliation?
ensuring our ledger amounts are correct by comparing them to an external source
