Group 2's bank reconciliation statement topic covers the definition of a bank reconciliation as explaining differences between a cash book and bank statement balances. It defines a cash book as recording all cash receipts and payments, while a bank statement is issued monthly listing transactions and the account balance. Common reconciling items include unpresented cheques, deposit transit cheques, service charges, dishonored cheques, interest allowed, and miscellaneous bank charges and credits.

1. Group No. 2
Roll No.
01:
02:
25:
38:
46:
45:
Name:
Sarmad Ali
Muhammad Abdullah
Noman Rasool
Hashaam Altaf
Imran Ahmed
Muhammad Haneef

2. TOPIC:TOPIC:
BANKBANK
RECONCILIATIONRECONCILIATION
STATEMENTSTATEMENT

3. “A bank reconciliation is a schedule
explaining any differences between
the balance shown in bank
statement and the balance shown in
Cash book”.
1.THE DEFINITION OF THE BANK1.THE DEFINITION OF THE BANK
RECONCILIATION STATEMENTRECONCILIATION STATEMENT

6. What is CashWhat is Cash
book and bankbook and bank
statementstatement

7. Cash book:Cash book:
A book in which record all the transaction
relating to cash receipt and payments in detail
is called cash book
Prepared or maintain by company
Kinds:
1. Simple : maintained by small enterprise
2.Cash book with discount
3.Cash book with discount and cash column
4.Petty cash book

9. Bank statement:Bank statement:
Report released (on a fixed date every month)
by banks that lists deposits, withdrawals, checks
paid, interest earned, and service
charges or penalties incurred on an account. It
shows the cumulative effect of
these transactions the account's balance, up to the
date the report was prepared

12. The balance in the cash book is an asset to the
company, therefore:
Cash book
(A credit
represents a
decrease)
(A debit
represents an
increase)
4. NATURE OF THE CASH BOOK AND4. NATURE OF THE CASH BOOK AND
THE BANK STATEMENT.THE BANK STATEMENT.

13. The balance as per bank statement is a
liability to the bank, therefore:
(represents
the amount
owed to
the clients)
Bank statement
Cr.
(represents
increases)
Dr.
(represents
decreases)
Balance

14. o Unpresented cheques
• Cheques drawn or paid by business and credited
in cash book but these cheques have not yet
been presented to bank for payment
Deposit transit/uncredited cheques
• Cheques received by business, paid into bank
and debited in cash book but not yet cleared by
bank and entered in its record. So, these
cheques will not appear in bank statement

15. o Service charges
Banks charges are all kinds of charges or fees
charged by the bank to its customer (Account
holder). These charges include charges for
providing the account, interest on overdraft,
charges on transactions etc...
o Dishonored cheques/NSF cheques
Cheque deposited or presented by customer
that is not credited by bank for any reason like
signature of customer does not match,
insufficient funds etc

16. o Interest allowed by the bank
These are interest received for deposits or fixed
deposits.
o Miscellaneous bank charges and credits
 Banks charge for services – such as printing
cheques, handling collection of notes receivable
and processing NSF cheques.