Bank Reconciliation Matrix

Why difference? A. Bank charges/ payment/ receipt

Description A1 : Bank Charges

A2 : Stamp Duty

Cash Book (CB) – adjustments? Debit Advice (source doc), eg TT, Overdraft, To CREDIT CB Debit Advice, Cheque Book, (CR) Overdraft , (CR)

Bank Reconciliation (BR) – adjustments? -No adjustment here

-No adjustment here

A3 : Interest on overdraft A4 : Direct Debit

-No adjustment here

Debit Advice, TNB, Maxis, (CR) Debit Advice, Insurance, (CR) Credit Advice, Transfer from customer, (DR) Credit Advice, Dividend (DR) Debit Advice or Credit Advice -No adjustment here

-No adjustment here -No adjustment here

A5 : Standing order

A6 : Credit Transfer

-No adjustment here

A7 : Dividend

-No adjustment here

A8 : Other Transaction a) Timing difference B1 : Unpresented Cheques B2 : Uncredited lodgement b) Error C1 : Error by cash book C2 : Error by bank

-No adjustment here


-No adjustment here Adjusted C/B

Add -No adjustment since casbook error

-No adjustment since bank error

Record in bank reconciliation

Steps for bank reconciliation

Step 1 Step 2 Step 3

Reconcile the OPENING BALANCES of cash book and bank statement by taking the difference. CHECK for transaction in the cash book and bank statement for the difference. (normally at the beginning of the month) Prepare REVISED CASH BOOK by checking the debits (ie. payments eg. Standing order, direct debit, stamp duty etc) and credits (ie. deposits eg. Credit transfer by customers, dividend paid, interest paid by bank etc.) in the bank statement. Knock off (eg. Payment in bank statement shall be DEBIT and cashbook shall be CREDIT confirm the amount too. If BS & CB differs take BS number as accurate) the bank statement transaction with cash book transactions. Prepare bank reconciliation. (where the adjustments are unpresented cheques, uncredited lodgements and errors by the bank)

Step 4

Step 5

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