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WEEK TEN (10)
TOPIC: BANK RECOCILIATION
CONTENTS:
- Interpretation of bank Statement
- Adjustment of Cash Book
- Bank reconciliation
SUB-TOPIC: INTERPRETATION OF BANK STATEMENTS
TREATMENT OF BANK RECONCILIATION
- Starting with the balance as per Cash Book
- Starting with the balance as per Bank Statement
- Adjustment of the cash Book and preparation of Bank reconciliation Statement
- METHOD 1. Starting with Cash balance:
When the Cash book balance is used, Unpresented cheques, credit transfer and dividend are added while uncredited cheques, bank charges, standing order, dishonoured cheque are deducted.
EXAMPLE 1: FORMAT on Balance as per Cash Book
N N
Balance as per Cash Book ×××
Add: unpresented cheque ××× Dividend ××× Credit Transfer ××× ××× ×××
less: uncredited cheques ××× Bank Charges ××× Dishonoured cheques ××× Standing order ××× (×××) Balance as per Bank Statement ×××
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