Bank Reconciliation

Bank Reconciliation (Compromise) Statements 1 Cheque Issued but not presented (cleared) 2 Cheque Deposited butr not Credited (cleared) 3 Bank Charges 4 Direct Debit 5 Direct Credited 6 Mistakes Practical sample Bank A/c as in Ledger (Part of the Ledger) Debit Side (Receipts) Credit Side(Payments) Date Details Amt Date Details Amt 1/Jan/05 Cash 5,000.00 15/Jan/05 Rent (Chq No 1) 3,100.00 10/Jan/05 Mr John 3,000.00 28/Jan/05 Electricity (Chq No. 2) 600.00 20/Jan/05 Mr Brown 2,700.00 29/Jan/05 Electricity (Chq No. 3) 200.00 30/Jan/05 Telephone (Chq No. 4) 150.00 Balance c/d 6,650.00 10,700.00 10,700.00 Balance c/d 6,650.00 31/Jan/05 Direct Credit (Mr Lee) 700 31/Jan/05 Bank Charges 30.00 Balance c/d 7,320.00 7,350.00 7,350.00 Balance c/d 7,320.00

Bank Statement For JAN-05 Date Descrebtion Debit 1/Jan/05 Cash 11/Jan/05 Mr John 22/Jan/05 Chq No. 1 3,100.00 29/Jan/05 Chq No. 3 200.00 31/Jan/05 Direct Credit (Mr Lee) 31/Jan/04 Bank Charges 30.00

Credit Balance 5,000.00 5,000.00 3,000.00 8,000.00 4,900.00 4,700.00 700.00 5,400.00 5,370.00

Thinks to do (Before Preparing the Bank Reconciliation) 1 Cross Check the Enteries 2 Correct the A/c (update it with the new entries) 3 Prepare the Bank renconciliation statement

Bank Reconciliation Banlance as Per Bank A/c ADD (Chq Issued but not presented) Chq No.2 Chq No.4 LESS (Chq deposit but not Cleared) Mr Brown

7,320.00 600 150

750.00 6,570.00 2,700.00 IS THE AMT WHICH IS SHOWN 5,370.00 AS BALANCE IN THE BANK STATEMENT