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Basic Reconciliation Statement
Content Standards
• The learners demonstrate an understanding of a bank
reconciliation statement, its nature and structure, and
reconciling items and methods of preparation.
Performance Standards
• The learners shall be able to solve exercises and
problems involving the identification of the proper
treatment of reconciling items in the bank reconciliation
statement.
Learning Competencies
1. Describe the nature of a bank reconciliation statement.
2. Identify common reconciling items and describe each of
them.
3. Analyze the effects of the identified reconciling items
INTRODUCTION (10 MINS)
• Introduce the following learning objectives:
a. I will be able to describe the nature of a bank
reconciliation statement.
b. I will be able to identify common reconciling items and
describe each of them.
c. I will be able to analyze the effects of the identified
reconciling items.
MOTIVATION (10 MINS
• 1. Review the learners on the discussion made about the
basic documents and transactions related to bank
deposits • Ask the learners what is current account • Ask
the learners who are the parties involved in the issuance
of a check. • Ask the learners what is a bank statement. •
Ask the learners what are the contents of a bank
statement. • Ask the leaner the purpose of a bank
statement.
• 2. Ask the learners “Upon receipt of a bank statement,
what will the company do?”
1. Nature of Bank Reconciliation Statement
• Bank Reconciliation
• It is normal for a company's bank balance as per
accounting records to differ from the balance as per bank
statement. The difference between these figures is the
reasons why companies prepare a bank reconciliation
statement. 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.
Two common causes of the discrepancy in
figures
• Time lags that prevent one of the parties (company or the
bank) from recording the transaction in the same period
as the other party.
• Example: A bank statement that ends January 30, 2015
and then the company were able to collect cash of
P20,000 at 5:00 PM. Bank usually closes at 3:00 PM
because of this, the cash collected will not be reflected
in the bank as deposit but it is however recorded in
accounting records of the company.

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Bank Reconciliation.pptx

  • 2. Content Standards • The learners demonstrate an understanding of a bank reconciliation statement, its nature and structure, and reconciling items and methods of preparation.
  • 3. Performance Standards • The learners shall be able to solve exercises and problems involving the identification of the proper treatment of reconciling items in the bank reconciliation statement.
  • 4. Learning Competencies 1. Describe the nature of a bank reconciliation statement. 2. Identify common reconciling items and describe each of them. 3. Analyze the effects of the identified reconciling items
  • 5. INTRODUCTION (10 MINS) • Introduce the following learning objectives: a. I will be able to describe the nature of a bank reconciliation statement. b. I will be able to identify common reconciling items and describe each of them. c. I will be able to analyze the effects of the identified reconciling items.
  • 6. MOTIVATION (10 MINS • 1. Review the learners on the discussion made about the basic documents and transactions related to bank deposits • Ask the learners what is current account • Ask the learners who are the parties involved in the issuance of a check. • Ask the learners what is a bank statement. • Ask the learners what are the contents of a bank statement. • Ask the leaner the purpose of a bank statement. • 2. Ask the learners “Upon receipt of a bank statement, what will the company do?”
  • 7. 1. Nature of Bank Reconciliation Statement • Bank Reconciliation • It is normal for a company's bank balance as per accounting records to differ from the balance as per bank statement. The difference between these figures is the reasons why companies prepare a bank reconciliation statement. 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.
  • 8. Two common causes of the discrepancy in figures • Time lags that prevent one of the parties (company or the bank) from recording the transaction in the same period as the other party. • Example: A bank statement that ends January 30, 2015 and then the company were able to collect cash of P20,000 at 5:00 PM. Bank usually closes at 3:00 PM because of this, the cash collected will not be reflected in the bank as deposit but it is however recorded in accounting records of the company.