Bank Reconciliation

Introduction
• Business prepares its own bank account
• Bank prepare bank statement
• But ending balance is not same.
• Why?
 Item recorded in bank account, but not
recorded in bank statement
• Uncredited cheque
– Business record amount received in account
(Debit)
– Bank do not record yet
• Unpresented cheque
– Business record amount paid in account (Credit)
– Bank do not record yet
Item have been recorded in Bank Statement
but not yet recorded in Bank account

• Direct debit
• Standing order or instruction
• Bank service charge
• Credit transfer
• Interest revenue
• Dishonoured cheque
 Error
• Error made by bank
– Wrong account
– Wrong amount
• Error made by the business
– Just like the error in Trial balance
 Step to Bank Reconciliation Statement

1. Compare bank account and bank statement

2. Prepare adjusted bank account
3. Prepare Bank Reconciliation Statement
Adjusted cashbook(bank column)
Adjusted Cashbook (Bank Column)

Bal b/d (from Bal c/d of provided Amount from debit side of bank statement
cash book account)

Amount from credit side of bank Bal c/d

statement

Extra note:
1. The position of bal b/d and bal c/d may depends on the question.
2. Error will be adjusted according to the question
Format Bank Reconciliation Statement
Company’s Name
Bank reconciliation Statement as at 31 xx 20xx
Balance as per adjusted cash book xx

Add: Unpresented cheque

(amount from bank account credit side) xx
Error if bank wrongly credit our account xx
Error if bank terlebih rekod (amount yang lebih) xx xx

Less: Uncredited cheque

(amount from bank account debit side) xx
Error if bank wrongly debit our account xx
Error if bank terkurang rekod (amount yang lebih) xx (xx)

Balance as per bank statement xxx