Free Bank Reconciliation Template 45Free Bank Reconciliation Template 45Free Bank Reconciliation Template 45
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Bank Reconciliation Statements (With answers)
A.

Purpose of a bank reconciliation
It should be prepared regularly as part of the internal control system of the business to check:
a) the accuracy of the cash book
b) the accuracy of the bank statement
c) that undue delay is not occurring between payments, receipts and their clearance by the
bank
d) to discover payments made and items received by the bank not entered in the cash book

B.

Reasons for differences in bank statement and cash book
a) The causes of difference will be fall into one of the following classes:
b) Items (not consisting of errors) which appear in the bank statement but which are not in
the cash book, e.g., dishonoured cheques or bills, interest and bank charges, standing
order (an order made to the bank to make a regular payment), dividends or interest
income credited direct to the bank and payments by customers which are paid direct to
the bank.
c) Items (not consisting of errors) which appear in t