Bank reconciliation statement

Introduction
The International is currently a global city; hence there is growth in the context of exchanges and
speculation. Due to the numerous exchanges and the difficulty of fragility within the framework, using
coins within the daily exchanges is a difficult circumstance. Of manpower and goods, because managing
the banks in the sporting activities of the trading company with the help of all the money owed is a better
option. Thereafter, the British Sanctioned Accountants Organization declared that the bank is an
essential established order in a court-like society.
Growing within the forefront of the stock market, stock exchange and trading company, business
business factors face challenging situations in real cash execution for every business move. Despite the
fact that banks have made the use of ATMs and various digital devices available within economic
exchanges. Devices have their own limitations. To test this, Jagged CA (2014) noted that the relationship
between banking literacy and computerized automated teller machine (ATM) use is an overwhelming
thought when looking at the overall effectiveness and performance effect, an affiliation with use and use
a great success.

Bank reconciliation declaration:

Bank reconciliation declaration: Bank reconciliation declaration is a declaration organized to reconcile
the difference among the balances in line with the financial institution section of the coins eye-e book at
a given date.
Advantages OF BANK RECONCILIATION STATEMENT TO SMALL SCALE BUSINESS
ENTITIES.
He purpose for accommodating financial institution and cash eye-e book adjusts is to assure that no off-
base statistics is recorded through the banks. Once more, it ensures that no exchanges are being
recorded in a few unacceptable ledger. Accounting Tool, the inducement at the back of financial
institution compromise is to examine banks' document of exchanges of a document with the holder's
data. Getting prepared normal compromise of economic stability assists with inflicting to observe
contrasts, errors and faux sporting activities at the data.
Differences which might be simple comprise financial institution costs, fees, insufficient property and
incorrect document of exchanges. Associations that do normal, 1/2 of every year or every year overview
might imagine that it’s gainful to get prepared financial institution compromise because it improves
overview degree and diminishes irregularities in the direction of the end of the financial institution
compromise. On a comparable note, in Accounting Simplified. Com it become expressed that fruition of
financial institution compromise enables in actual cash the executives.
It indicates errors recorded and ensures that the inconsistencies have been acceptably settled. Bank
compromises can help an agency with confirming that its ledger completing stability in step with the
financial institution coordinates with the equilibrium to be had of the commercial enterprise affiliation.

Reasons for THE DISCREPANCY BETWEEN THE CASH BOOK AND BANK
BALANCES:
When contrasting the Bank and cash adjusts of the commercial enterprise association, there's frequently
a distinction. There is probably likewise time assessment among the time of putting in the exchanges
with inside the financial institution phase of cash eye-e book and the cash section of financial institution
Conclusion and Recommendations
Base at the discoveries of this exam, compromise of financial institution and cash adjusts, duty
and productiveness of confined scope commercial enterprise factors; the accompanying
proposals are recommended: - Small scope commercial enterprise materials must accommodate
their financial institution clarification and cash adjusts to avoid superfluous expense. - Banks
must likewise empower the readiness of financial institution compromise articulations through
making reachable to them at becoming time and earlier than call for is being made the financial
institution clarification of confined scope commercial enterprise materials.

 References
Anatole, (2013), Monitoring Bank Surplus Charges. Jagged C. (2014) Impact of ATMs on Nigerian
Banks' Performance. K, 2012), Kent J and Irfanyllah (2008),
How to Create a Corporate Bank Reconciliation Statement, Media Inquiry, Branch Financial
Management Procedures and Controls (2006), Bank Reconciliation and Procedures.

Part A

BANK RECONCILIATION Statement

Particulars Amount Amount
Balance as per cashbook -45000
(over draft)

Add: insert earned 150

Dividend directly collected 2500
by bank
cheque issues to variance 12000
suppliers
Deposited directly in bank by 4500 19150
suppliers

Less: bank charge not -50

recorded
Electricity bill paid by bank -1000
directly
Amount entered wrongly -175
Cheque deposited with bank -15000
not collected
Cheque returned with note -5200
insufficient fund
Cheque deposited not send -32000
for collection
 Debit in passbook for a -3000 -56425
dishonoured cheque

Over draft balance as per -82275

passbook

b) Suspense account transaction:

Entry passed at a time of receiving rent amount: Debit credit

Cash bank account 13300
Suspense account 13300
Rectification entry to be passed:
Suspense account 13300
Rent income account 13300
Note we assumed that the rent was accrued and receive it on same date

Here we did question on the basis of all credit and cash purchases

a. Bank Reconciliation

Credit purchase for which payment has been made-

3001- 110000

3002 - 100000

Cash purchases- 23000+24000= 47000

= 257000

B. purchase ledger

invoice no. account debit invoice no. account credit

3001
prime products 110000

3002 East pharma 100000

Prime products ledger

invoice account amount invoice amount amount

3001 cash 110000 3001 purchase 110000

3001 cash 35000

146 purchase return 4500
East pharma

amoun invoic
invoice account t e amount amount

cash 10000
3002 0 3002 purchases 100000

3002 cash 35000

purchase
147 return 3000