(d). NSF stands for Not Sufficient Funds. You can do so by comparing the deposits in your accounting record with the deposits shown in your bank statement. I wish u can help us! A statement prepared by the depositor (Account Holder) to overcome the differences in balances of Cash Book and Bank Statement is called Bank Reconciliation statement. In some cases i have problem for example : The following checks issued during the month of January have not yet been cleared by the bank. 1. check no… was incorrectly recorded in the cashbook as $7600 , the check was correctly debited on the bank statement on 2 July 2011 as $6700. Prepare a Bank Reconciliation statement as on 30th November 2006 from the following information: 1. 1 The bank reconciliation The objective of a bank reconciliation is to reconcile the difference between: the cash book balance, i.e. … Step 6 – Make appropriate journal entries: The final step in a bank reconciliation is to prepare appropriate journal entries for the items that you have not recorded yet in your accounting records. Add to your accounting record any credit memorandum not entered in your accounting record. The usual reasons of this disagreement are explained below: Outstanding checks (also known as unpresented checks and uncleared checks) are the checks that have been issued by the company to a creditor but have not yet been presented for payment. Similarly, if a businessman deposits any cheques on the last day of the month, these cheques may be collected by his bank and shown on his bank statement three or four days later. Balance per Bank Statement 104,806 Bank Reconciliation Statement (as at 31.1.2XX1) Prepared by : Approved by : (name / title) (name / title) (Note : The figures used in the above Bank Reconciliation Statement are for illustrative purpose only) Example of Bank Reconciliation Statement Bank: ABC Bank Account No. The items there-in should be compared to the new bank statement to check if these have since been cleared. It explains any delay in the collection of cheques. Is it necessary to conduct bank reconciliation if there is no difference between bank book and bank statement? For example, if a businessman issues a cheque for say $2,500 to one of his suppliers on 28 May, it is quite possible that this cheque may not be presented by that supplier to his bank till say 5 June. The bank reconciliation process requires some tedious tasks. The dishonored check is returned to the depositor as NSF check. Required: Prepare a bank reconciliation statement for the Fast Company using above information. Sometimes, the bank balance as per cash book and pass book do not tally with each other, then we can know the difference between them by preparing the bank reconciliation statement. Further details are as follows: 1. Daily Bank Reconciliation Template All transactions between depositor and the bank are entered separately by both the parties in their records. Banks pay interest on some accounts. Hence, at the end of each month, the first thing to do is to consult the bank reconciliation statement prepared at the end of the previous month. Once the correct adjusted cash balance is satisfactorily calculated, journal entries must be prepared for all items identified in the reconciliation of the ending balance per company records to the correct cash balance. If this interest is credited in the depositor’s account without intimating to the depositor, the bank statement and the depositor’s record will not agree. Kindly help me with this last column for: If your accounting record shows that a check has been issued and your bank statement does not show a corresponding entry for that check, it means it is an outstanding or unpresented check. It is for this reason that a bank reconciliation statement is prepared to reconcile (‘tally up’) the two balances. Accounting For Management. Pls keep sales tax example and iilustrations pls we r having prblm in valueation in sales tax Bank reconciliation statement is a statement which explains the difference between the bank balance in the cash book of the company and bank account maintained with the bank by the company.