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[Bank Reconciliation]
Synchronous Lecture 1
Created @January 10, 2023 11:35 PM

Class CFAS 2-002

Type Lecture

Other Type

Materials

Reviewed

Status Completed

Bank Reconciliation Statement

A summary of banking and business activity that reconciles an entity's bank account
with its financial records

Bank Reconciliation
A statement that brings into agreement the cash balance per book and cash
balance per bank

Necessary only for a demand deposit or checking account

Requires a bank statement and depositor's ledger

Depositor vs Bank Depositor vs Bank

a.) Collection of Accounts Receivables (AR) b.) Payment of Accounts Payable

– Depositor Cash (cash in bank) xxx Acc

– Depositor Acc Payable (AP) xxx Cash xxx
Receivables (AR) xxx

[Bank Reconciliation] Synchronous Lecture 1 1

 Depositor vs Bank Depositor vs Bank

– Bank Cash xxx Company X xxx – Bank Company X xxx Cash xxx

a.) Receipts b.) Disbursements

– Book Debits – Bank Credits – Book Credits – Bank Dedits

Reconciling Items
1. Bank Reconciling Deposits in Transit are collections already recorded
Items by the depositor but not yet by the bank

a. Deposits in Transit Added to bank balance

b. Outstanding Outstanding Checks are checks already recorded

Checks by the depositor but not yet recorded by the bank

c. Errors Deducted from the bank balance

Certified Checks should be deducted from the

total outstanding checks

2. Book Reconciling Credit Memos are items not representing deposits

Items
Added to book balance
a. Credits Memos
Noted collected by bank in favor of the depositor
b. Debits Memos
Proceeds from bank loan
c. Errors
Matured time deposits

Debit Memos are items not representing checks paid

by the bank

Deducted from book balance

NSF checks

Technically defective checks

Bank service charges

Forms of Bank Reconciliation

[Bank Reconciliation] Synchronous Lecture 1 2

 a. Adjusted balance method

b. Book-to-bank method

c. Bank-to-book method

[Bank Reconciliation] Synchronous Lecture 1 3

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