Bank Reconciliation Statement

Items Found on the Bank Statement But not in the Cash Book
Credit Transfer/Traders Credit/Direct Bank

Transfer/Bank Giro Credit this is where money from a debtor or any entities is paid directly in the bank Debit Transfer or Direct Debit this is where the business gives a creditor permission to withdraw money from its bank account. Standing Order this is where a firm instruct the bank to pay a fixed payment at regular intervals.

Items Found on the Bank Statement But not in the Cash Book
Bank Charges or Bank Commissions these

represent money that the bank charges for offering their services. Dishonoured Cheques These are cheques that the bank refuses to make payment.

 Bank errors these are errors made by the bank

on a company's bank account. These are usually infrequent but could include an incorrect amount of a check or deposit or a check or deposit recorded in the wrong account.

Preparing the Bank Reconciliation Statement

Tick the items that are on the bank statement and

were entered in the cash book. (The unticked items will appear in the bank reconciliation statement.)
Prepare the updated cash book. Prepare the bank reconciliation statement.

Updated Cash Book

Balance b/d
Credit Transfer Interested Received Correction of Cash Book Errors

xx Balance b/d (Overdraft)

xx Standing Order xx Direct Debit xx Bank Charges Dishonoured Cheques Correction of Cash Book Errors Balance c/d xx

xx
xx xx xx xx xx xx xx

Bank Reconciliation Statement using the Cash Book Balance when there is Cash At Bank
Bank Reconciliation Statement as at Date

Balance as per Cash Book

Add Unpresented Cheque Less Late Lodgements Balance as per Bank Statement

xx
xx xx xx xx

Bank Reconciliation Statement using the Cash Book Balance when there is an Overdraft
Bank Reconciliation Statement as at Date

Overdraft as per Cash Book

Add Late Lodgements Less Unpresented Cheque Balance as per Bank Statement

xx
xx xx xx xx

Bank Reconciliation Statement using the Bank Statement Balance when there is an Cash in Bank
Bank Reconciliation Statement as at Date

Balance as per Bank Statement

Add Late Lodgements Less Unpresented Cheque Balance as per Cash Book

xx
xx xx xx xx

Bank Reconciliation Statement using the Bank Statement Balance when there is an Overdraft
Bank Reconciliation Statement as at Date

Balance as per Bank Statement

Add Unpresented Cheque Less Late Lodgements Overdraft as per Bank Statement

xx
xx xx xx xx