Indicate how each of the following items would be included on a bank reconciliation.
A bank reconciliation statement is a summary of banking and business activity that reconciles an entity’s bank account with its financial records. The statement outlines the deposits, withdrawals and other activities affecting a bank account for a specific period.
Bank reconciliation statements confirm that payments have been processed and cash collections have been deposited into a bank account.
While preparing a bank reconciliation statement as per bank statement, transactions that do not appear on the bank statement till the end of an accounting period are to be considered. And also included are the errors' rectification that occurred in the bank statement.
Similarly, while preparing a bank reconciliation statement as per bank account in company records, transactions that do not appear in the bank account till the end of an accounting period are to be considered. And also included are the errors' rectification that occurred in the bank account while recorded in the company's books.
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