The document discusses bank reconciliation, which is the process of ensuring the bank statement balance matches the business's records. It explains items that may appear in only one record like deposits not cleared. The purpose is to identify and correct discrepancies by preparing a bank reconciliation statement that lists unpresented checks, uncredited deposits, and other adjustments to calculate the correct balance. Instructions are provided on updating records, identifying reconciling items, and preparing the final reconciliation statement to match the business and bank records.
Bank reconciliation statement is a report which compares the bank balance as per company's accounting records with the balance stated in the bank statement.
It is normal for a company's bank balance as per accounting records to differ from the balance as per bank statement due to timing differences. Certain transactions are recorded by the entity that are updated in the bank's system after a certain time lag. Likewise, some transactions are accounted for in the bank's financial system before the company incorporates them into its own accounting system. Such timing differences appear as reconciling items in the Bank Reconciliation Statement.
The purpose of preparing a Bank Reconciliation Statement is to detect any discrepancies between the accounting records of the entity and the bank besides those due to normal timing differences. Such discrepancies might exist due to an error on the part of the company or the bank.
Bank reconciliation statement is a report which compares the bank balance as per company's accounting records with the balance stated in the bank statement.
It is normal for a company's bank balance as per accounting records to differ from the balance as per bank statement due to timing differences. Certain transactions are recorded by the entity that are updated in the bank's system after a certain time lag. Likewise, some transactions are accounted for in the bank's financial system before the company incorporates them into its own accounting system. Such timing differences appear as reconciling items in the Bank Reconciliation Statement.
The purpose of preparing a Bank Reconciliation Statement is to detect any discrepancies between the accounting records of the entity and the bank besides those due to normal timing differences. Such discrepancies might exist due to an error on the part of the company or the bank.
Here we have considered the Difference between the Bank balance as per Cash Book & the Pass book by preparation of the Bank Statement. The reasons of differences & importance of finding the variation is discussed.
Preparation of financial statements for a business which has not maintained proper records(Double Entry records)
Profit Equation method or Converting incomplete records to complete records.
know the Importance and Need of Bank Reconciliation Statement.
Understand the Causes for Disagreement between Cash Book and Pass Book Balances.
Prepare Bank Reconciliation Statement.
Here we have considered the Difference between the Bank balance as per Cash Book & the Pass book by preparation of the Bank Statement. The reasons of differences & importance of finding the variation is discussed.
Preparation of financial statements for a business which has not maintained proper records(Double Entry records)
Profit Equation method or Converting incomplete records to complete records.
know the Importance and Need of Bank Reconciliation Statement.
Understand the Causes for Disagreement between Cash Book and Pass Book Balances.
Prepare Bank Reconciliation Statement.
14. bank reconcilaition statement i accounting-workbooks-zaheer-swatiZaheer Swati
Bank Reconciliation Statement: The cash Book and Pass Book / Bank Statement are prepared separately. The Businessman prepares the Cash Book and the Pass Book is prepared by the Bank (here by cash book we mean two or three column cash Book). But as both the books are related to one person and same transactions are recorded in both the books so the balance of both the books should match i.e. the balance as per Pass Book should match to balance at bank as per cash book.
Ethnobotany and Ethnopharmacology:
Ethnobotany in herbal drug evaluation,
Impact of Ethnobotany in traditional medicine,
New development in herbals,
Bio-prospecting tools for drug discovery,
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The Indian economy is classified into different sectors to simplify the analysis and understanding of economic activities. For Class 10, it's essential to grasp the sectors of the Indian economy, understand their characteristics, and recognize their importance. This guide will provide detailed notes on the Sectors of the Indian Economy Class 10, using specific long-tail keywords to enhance comprehension.
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Students, digital devices and success - Andreas Schleicher - 27 May 2024..pptxEduSkills OECD
Andreas Schleicher presents at the OECD webinar ‘Digital devices in schools: detrimental distraction or secret to success?’ on 27 May 2024. The presentation was based on findings from PISA 2022 results and the webinar helped launch the PISA in Focus ‘Managing screen time: How to protect and equip students against distraction’ https://www.oecd-ilibrary.org/education/managing-screen-time_7c225af4-en and the OECD Education Policy Perspective ‘Students, digital devices and success’ can be found here - https://oe.cd/il/5yV
We all have good and bad thoughts from time to time and situation to situation. We are bombarded daily with spiraling thoughts(both negative and positive) creating all-consuming feel , making us difficult to manage with associated suffering. Good thoughts are like our Mob Signal (Positive thought) amidst noise(negative thought) in the atmosphere. Negative thoughts like noise outweigh positive thoughts. These thoughts often create unwanted confusion, trouble, stress and frustration in our mind as well as chaos in our physical world. Negative thoughts are also known as “distorted thinking”.
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
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2. • Distinguish and explain items
appearing in the Bank Statement/Pass
Book and Cash book (Bank Column).
• Understand the need and the purpose of
preparing the Bank Reconciliation
Statement
• Prepare the Bank Reconciliation
Statement
3. The business expects the ending balance appearing in the bank
statement is the same as the amount in the Cash Book (bank
column).
Thus, the purpose of Bank Reconciliation is to do necessary
adjustments to our records in the cash book and come up with
the same ending balance as recorded by the bank.
It is an analysis explaining the difference between a business’s
book balance of cash and its bank statement balance.
4. Bank Statement is normally debited for
payments or charges, and credited for receipts by
the business.
i. Examples of payments and charges: cheques
drawn in favour of creditors or suppliers, bank
charges, direct debits and standing
order/instructions.
ii. Examples of receipts: deposits of cash or cheques,
dividend, interest on current account and bank
GIRO credits or credit transfer.
5. UITM BANK
Shah Alam
Statement of Account
Account No. 654321 Date: 30April
2007
Date Particulars Debit
Withdrawal
Credit
Deposit
Balance
April 1 Balance b/f 800.50 Cr
April 3 Cash deposit 7,000.00 7,800.50 Cr
April 4 Transfer from branch 2,500.00 10,300.50 Cr
April 6 Cheque book 5.00 10,295.50 Cr
April 8 70010 550.00 9,745.50 Cr
April 10 70011 700.00 9,045.50Cr
April 12 70012 430.00 8,615.50 Cr
April 15 Direct deposit 645.00 9,260.50 Cr
April 20 Direct Debit 574.00 8,686.50 Cr
April 25 Interest 166.70 8,853.20 Cr
April 28 Bank Charges 10.00 8,843.20 Cr
6. Cash book or bank account is normally debited
with receipts (deposits of cash or cheques)
credited with payments (cheques drawn in
favour of creditors or suppliers) of the
business.
7. a) Items recorded in the Bank account but not recorded by the
bank:
i. Deposits not yet credited. This happens when a business
deposits money or cheques but the amount does not appear
in the bank statement since the deposits has not yet been
processed by the bank; but has already been recorded by the
business.
ii. Unpresented cheques. Cheques drawn for payment to
creditors or others have not been cashed or banked, i.e.,
when cheques are drawn for payment and sent to creditors,
the record in the business books has been made, but for
some reasons the creditor is still carrying the cheque around
and have not presented it to the bank for clearance.
8. (b) Items recorded in the Bank Statement but not recorded by the business:
i. Direct debit. The bank debited the account of the business for payments such
as insurance premiums, rates, fees, subscriptions etc.
ii. Standing instructions order. This is quite similar to the direct debit in that
the bank will debit the account of the business for payments such as
insurance premiums, rates, subscriptions, etc.
iii. Bank service charge. This is a fee charged by the bank for operating the
account for the business andlor issuing the cheque book.
iv. Bank GIRO credit or credit transfer. The business account is credited with
amount paid by creditor or other organisation direct into the business bank
account.
v. Interest revenue on current account This interest is credited to the account of
the business and is paid by certain bank based on large enough balance of
cash in the account.
vi. Dishonoured cheques. A cheque, that the bank will not honour upon
presentation by the business for clearance. However, the business has
already accepted the cheque for the cash book settlement of a debt.
9. (c). Errors
I. Errors made by the bank - a cheque payment by
a debtor had been debited to the business
account by the bank, or a bank may make an
error in recording the amount to be debited or
credited.
II. Errors made by the business - error in recording
the amount to be debited or credited, or
transactions are being debited to the cash book
instead of being credited.
10. Updating the Bank account
i. Matching of entries on the bank statement with those in the bank
account. This is done by ticking items that appear both in the bank
statement and in the bank account.
ii. Items appearing in the bank statement but not in the bank account
are transferred to the bank account.
iii. There would still be items in the bank account left unticked and
they would be treated as either uncredited lodgement (if it is a debit
item) or as unpresented cheques (if it is a credit item) and these
items would be dealt with in the bank reconciliation statement later
on.
iv. Any errors relating to the bank account would be dealt with at this
stage.
v. Complete the necessary double entry and carry down the balance of
the bank account.
11. b. Preparing the Bank Reconciliation Statement
i. Start with balance as per updated bank account balance
Bank Reconciliation Statement as at …..
Balance as per updated bank account xx
Add: Unpresented cheques xx
Less: Uncredited lodgements (xx)
Balance as per bank statement xxx
ii. Start with balance as per bank statement
Bank Reconciliation Statement as at….
Balance as per bank statement xx
Add: Uncredited lodgements xx
Less: Unpresented cheques (xx)
Balance as per updated bank account xxx
12. The explanation below are meant for bank reconciliation
statement that starts with the updated bank account balance:
I. Opening balance disagreements: the normal procedure is to
account for the opening difference, i.e. by matching and ticking
against the entries in the previous period’s bank account.
II. Errors made by the bank: if as a result of the error, the bank
balance has been understated, for example, if the bank had
wrongly debited the bank statement, subtract the amount, The
reverse treatment is necessary if the bank had wrongly
credited the bank statement and as a result the bank statement
balance had been overstated.
III.Overdraft for such cases the uncredited lodgement will be
added whilst the unpresented cheques subtracted.
13. Bank account
Balance b/d 8465.50 Direct debit 574.00
Bank GIRO Credit 645.00 Bank charges 10.00
Interest 166.70 Balance c/d 8,693.20
9,277.20 9,277.20
Bank Reconciliation Statement as at 30 April 2007
Balance as per bank account (updated) 8,693.20
Add: Unpresented cheques 350.00
9,043.20
Less: Uncredited lodgments 200.00
Balance as per bank statement 8,843.20
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