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Bank Reconciliation Statement


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Published in: Economy & Finance, Business

Bank Reconciliation Statement

  1. 1. Bank Reconciliation Statement AFTERSCHO ☻ OL – DEVELOPING CHANGE MAKERS CENTRE FOR SOCIAL ENTREPRENEURSHIP PGPSE PROGRAMME – World’ Most Comprehensive programme in social entrepreneurship & spiritual entrepreneurship OPEN FOR ALL FREE FOR ALL AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
  2. 2. Bank Reconciliation Statement Dr. T.K. Jain. AFTERSCHO ☺ OL Centre for social entrepreneurship Bikaner M: 9414430763 [email_address] , AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
  3. 3. What is bank reconciliation statement? <ul><li>There are differences between bank balance as per pass book and as per the bank account maintained by the firm. These differences are due to many reasons. Bank reconsiliation statement is an attempt to identify the reasons of these differences and take remedial actions whereever necessary. </li></ul>
  4. 4. Reasons for differences between bank pass book and bank account maintained by the firm… <ul><li>Cheque issued but not deposited by the customers </li></ul><ul><li>Cheque deposited in the bank, but not yet cleared </li></ul><ul><li>Direct payment by bank as per standing instructions </li></ul><ul><li>Penalties / charges / interest levied by bank without intimation to the firm. </li></ul><ul><li>Wrong posting / wrong entry </li></ul>
  5. 5. If you deposit a cheque of Rs. 10000 in the firm XYZ’s account, but the bank gives no intimation to the firm. What will be the impact? <ul><li>The balance as per pass book will be more than the balance as per personal account of bank maintained by the firm. </li></ul><ul><li>Solution: </li></ul><ul><li>Add Rs. 10000 in the bank account of the firm and thus the two balance will be equal. </li></ul>
  6. 6. Cheques issued but not yet presented for payment <ul><li>The balance as per bank account maintained by the firm will be reduced by the amount of cheue (but the cheque has not yet been presented in the bank). </li></ul><ul><li>Thus in order to rectify the situation, we have to add back this amount in the bank stateemnt or </li></ul>
  7. 7. Interest allowed by the bank – what will be the impact… <ul><li>When bank allows interest – the pass book balance increases, but the firm comes to know about it much later so the balance as per the accounts of the firm remain unaltered. In order to reconcile, you have to add this amount in the balance from the firm’s bank account. </li></ul>
  8. 8. Direct payment by customers into bank <ul><li>In this case the bank balance as per bank pass book will increase – as customers have deposited some money directly. In this case there will be difference in the two balances and in order to reconcile, please add this amount in the balance as per bank account of the firm. </li></ul>
  9. 9. Interest on investment received by the bank <ul><li>Bank has received this money on behalf of the firm (without intimation to the firm). There will be difference in the accounts. Thus to reconcile, add this amount in the balance as per bank account of the firm. </li></ul>
  10. 10. Dividend on shares collected by the bank <ul><li>The balance in the bank pass book will increase – so in order to reconcile, add this amount in the bank account of the firm. (so add this). </li></ul>
  11. 11. Rebate on bills retired under rebate through the bank but full amount entered in the cash book - <ul><li>The firm has received some rebate on the bills – the firm had given instructions to the bank to make the payment as per the bill amount, but due to rebate, the bank had to pay less. Thus in order to reconcile, add this rebate amount in the balance of bank account of the firm. </li></ul>
  12. 12. Any wrong entry on Cr. side of the pass book <ul><li>The balance of bank pass book has increased due to wrong entry. Rectify this entry with the bank. Till it is rectified, add this amount in the bank reconciliation statement to the bank balance account of the firm, so that the two balances are tallied. </li></ul>
  13. 13. About AFTERSCHO☺OL <ul><li>PGPSE - World’s most comprehensive programme on social entrepreneurship – after class 12 th </li></ul><ul><li>Flexible – fast changing to meet the requirements </li></ul><ul><li>Admission open throughout the year </li></ul><ul><li>Complete support from beginning to the end – from idea generation to making the project viable. </li></ul>
  14. 14. Branches of AFTERSCHO☺OL <ul><li>PGPSE programme is open all over the world as free online programme. </li></ul><ul><li>Those who complete PSPSE have the freedom to start branches of AFTERSCHO☺OL </li></ul><ul><li>A few branches have already started - one such branch is at KOTA (Rajasthan). </li></ul>
  15. 15. Workshop on social entrepreneurship <ul><li>We conduct workshop on social entrepreneurship – all over India and out of India also - in school, college, club, association or any such place - just send us a call and we will come to conduct the workshop on social entrepreeurship. </li></ul><ul><li>These workshops are great moments of learning, sharing, and commitments. </li></ul>
  16. 16. FREE ONLINE PROGRAMME <ul><li>AFTERSCHO☺OL is absolutely free programme available online – any person can join it. The programme has four components : </li></ul><ul><li>1. case studies – writing and analysing – using latest tools of management </li></ul><ul><li>2. articles / reports writing & presentation of them in conferences / seminars </li></ul><ul><li>3. Study material / books / ebooks / audio / audio visual material to support the study </li></ul><ul><li>4. business plan preparation and presentations of those plans in conferences / seminars </li></ul>
  17. 17. 100% placement / entrepreneurship <ul><li>AFTERSCHO☺OL has the record of 100% placement / entrepreneurship till date </li></ul><ul><li>Be assured of a bright career – if you join AFTERSCHO☺OL </li></ul>
  18. 18. Pursue professional courses along with PGPSE <ul><li>AFTERSCHO☺OL permits you to pursue distance education based professional / vocational courses and gives you support for that also. Many students are doing CA / CS/ ICWA / CMA / FRM / CFP / CFA and other courses along with PGPSE. </li></ul><ul><li>Come and join AFTERSCHO☺OL </li></ul>