Bank Reconciliation

Normal Difference b/w Bank Statement and Accounting Records.

The balance shown in a monthly bank statement rarely equals the
balance appearing in the depositor’s record. Certain transactions
recorded by depositor may not have been recorded by the bank. The
most common examples are.

Outstanding Cheques.
Cheques issued and recorded by the company but not yet presented
to the bank for payment.

Deposits in Transit.
Cash receipts recorded by the depositor but which reached the bank
too late to be included in the bank statement for the current month.
 Transactions appearing in BS may not have
recorded by the depositor.

• Bank Service Charges.

• Charge for depositing NSF cheques.
• Credits for interest earned.
• Zakat Deduction.
• Printing Cheques.
Bank Reconciliation

Balance as per Cash Book Rs.6800.

Balance as per Bank Statement Rs. 7255.
A check of Rs.4000 deposited into bank was not yet
cleared by bank.
A check of Rs.870 deposited into bank and cleared by the
bank, but it was recorded in bank statement as Rs.780.
A check of Rs.4500 issued to Kashmir Sports has not so
far been deposited to the bank for payment.
The bank statement showed debit of Rs.205 for Zakat
deduction and a credit of Rs.250 for bank profit.