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Bank Reconciliation Statement

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Etheline Chloe Bragas
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23 views

Bank Reconciliation Statement

Uploaded by

Etheline Chloe Bragas
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 26

In the last lesson, you

have learned . . .
Nature of Bank Reconciliation
Statement
What is the name of the procedure in
determining whether our cash record agrees
with our inventory of cash in the bank?
What is a Bank Reconciliation
Statement?
What are the reconciling items on
the bank side?
 Deposit in Transit

 Outstanding Check

 Bank Error
What are the reconciling items on
the book side?
 Collection received by the bank

 Debit / Credit Memo

 Book Error
Read each transaction and identify what
reconciling item of the book or bank.
Name of the
Transaction Bank/Book Add/ Add/
Reconciling Deduct To Deduct To
Item Book Bank

1. A check of ₱35,000 issued


to a supplier, was not yet Outstanding Deduct to
presented as payment to the
Check Bank
bank.
Name of the Add/ Add/
Transaction Bank/Book Deduct To Deduct To
Reconciling Book Bank
Item

2. ₱1,500 cash received by


the bank company, recorded
on March 31, however, the
cash deposited at the bank on Deposit in Add to
the afternoon of April 1. Transit Bank
Name of the Add/ Add/
Transaction Bank/Book Deduct To Deduct To
Reconciling Book Bank
Item

3. The teller erroneously


debited ₱20,000 to Rommel
Repairs account instead of Add to
₱2,000. Bank Error
Bank
Name of the
Transaction Bank/Book Add/ Add/
Reconciling Deduct To Deduct To
Item Book Bank

4. The customer deposited


₱10,000 to the company’s
bank account as payment of
receivable but not recorded Collection of Add to
in the company’s book. receivables Book
Name of the
Transaction Bank/Book Add/ Add/
Reconciling Deduct To Deduct To
Item Book Bank

5. The bank statement shows


a return check of ₱500 by the Debit Memo Deduct to
customer. (NSF Check) Book
Most Essential Learning Competency

Analyze the effects of the identified


reconciling items
Prepare a bank reconciliation statement
At the end of the lesson, you should be able to;
 Validates
the accuracy of both the banks and the
company’s cash records

 Determinethe actual cash balance to be reported


on the company’s statement of financial
position.
Adjusted balance method
Book Balance
+ Notes collected by the bank
Bank Balance + Interest earned
+ Deposit in transit - NSF Checks
- Outstanding checks - Service charge
+/- Bank error +/- Book error
= Adjusted Balance = Adjusted Balance
Bank-to-Book method
Bank Balance
+ Deposit in transit
- Outstanding checks
+/- Bank error
- Notes collected by the bank
- Interest earned
+ Service charge
+ NSF Checks
+/- Book error
= Book Balance
Book-to-Bank method
Book Balance
+ Notes collected by the bank
+ Interest earned
- NSF Checks
-Service charge
+/- Book error
- Deposit in transit
+ Outstanding checks
+/- Bank error
= Bank Balance
Balance per bank statement ₱ 108,000

+ Deposit in transit 80,000

- Outstanding checks (95,000)

Adjusted balance ₱ 93,000

Balance per books ₱ 65,000

+ Credit memos 30,000

- Debit memos (2,000)

Adjusted balance ₱ 93,000


GROUP ACTIVITY
Bank Reconciliation Problem: The following is the bank statement for January received from the First
Bank:
The cash records of Company X show the following for the In account with: No. 775
month of January. Company X FIRST
BANK
Ichon, Macrohon
Macrohon, So. Leyte

CASH CASH DISBURSEMENTS CHECKS


RECEIPTS Date No. Amount
Jan. 5 6,000 Jan. 6 Check No. 721 500 Deposits Balance
Jan. 6 6,000 6,000
Jan. 13 2,000 Jan. 7 Check No. 722 1,000 Jan. 8 721 500 5,500
Jan. 11 722 1,000 4,500
Jan. 25 3,000 Jan. 10 Check No. 723 1,800
Jan. 12 723 1,800 2,700
Jan. 14 2,000 4,700
Jan. 31 4,000 Jan. 14 Check No. 724 200
Jan. 17 724 200 4,500
15,000 Jan. 28 Check No. 725 3,700 Jan. 26 3,000 7,500
Jan. 26 CM 9,000
Jan. 31 Check No. 726 2,800 1,500
Jan. 30 RT 500 8,500
10,000 Jan. 30 SC 20 8,480
If you are a bookkeeper of
the company, what will you
do in order your cash
balance per book will
reconcile the bank balance?
Why is bank reconciliation
statement important in the
accounting records of the
business?
Prepare a Bank Reconciliation Statement using the
Adjusted Method
2023.
Additional Activity:

Using the problem given on the previous


slide, prepare a bank reconciliation
statement using the following method:
a. Bank to Book Method
b.Book to Bank Method

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