Answered: 1. Why it is necessary to prepare a…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter8: Fraud, Internal Controls, And Cash

Section: Chapter Questions

Problem 11PB: Leann Company received the following bank statement. Using the information from PB11 and PB12,...

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Question

1. Why it is necessary to prepare a bank reconciliation?

2. What are the causes that bs is differ from cb?

3. How does bank statement (bs) differ from cash book (cb)? Illustrate ur answer.

4. Differentiate outstanding checks from deposit in transit.

5. Enumerate the 7 steps .

Definition Definition Financial journal in which only cash-related transactions are recorded. Cash transactions are posted chronologically in the cash book, which is also called a subsidiary book. All the cash receipts are recorded on the debit side and all the cash payments are recorded on the credit side. An important point to remember is that the cash book never shows a credit balance; only a debit balance is shown in the cash book.

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