Entries on a bank statement

1. z
ENTRIES ON
A BANK
STATEMENT
Section 9
Objective 8
Ayanna Charles-Ford

2. z
OVERVIEW
 Opening balance
 Debit entries
 Credit entries
 Closing balance
 Other features
 Outstanding cheques
 Outstanding deposits
 Insufficient funds

3. z
Opening balance
 Closing balance from last month carried forward
 A debit balance – overdrafts as at the beginning
of the month
 A credit balance – balance as at the beginning
of the month

4. z
Closing balance
 A debit balance – overdraft as at the end of the
month
 A credit balance – balance as at the end of the
month

5. z
Debit entries
(Credit entries in the cash book)
 Represent money deducted from the customer’s account through
one or more of the following factors:
 Credit transfer payments made on behalf of the customer
 Bank interest charged for overdraft or loan
 Withdrawals by customer him/herself
 Cheques drawn in favour of another person by customer
 Payments of loan instalments
 Service charges
 Tax deducted

6. z
Credit entries
(Debit entries in the cash book)
 Represent money added to the customer’s account through one
or more of the following factors:
 Standing order payments received in favour of the customer
 Direct debit authority payments received in favour of the customer
 Credit transfer payments received in favour of the customer
 Bank interest received by customer
 Cheques received in favour of customer
 Dividends received in favour of customer

7. z
Other features associated with bank
statements
Outstanding cheques
 These are cheques sent to pay for something
but not yet received, processed or banked by
the payee, so the money has not been
deducted from the drawer’s bank account.

8. z
Outstanding deposits
 The cheque or cash has not yet been credited
to the account because the deposits still have
to be processed by the bank.

9. z
Insufficient funds
 The drawer does not have enough money in
their account to cover the cheque. This is
stamped ‘NSF’ and returned to the payee. It
never appears on the bank statement.

10. z
REFERENCES
 Carysforth, C. et al (2012). Office Administration
for CSEC – A Caribbean Examinations Council
Study Guide, Nelson Thornes UK.
 Ramtahal, F. (2013). Office Administration, (2nd
ed.) Caribbean Educational Publishers Trinidad.