Bank reconciliation is one of the important accounting procedure. Bank reconciliation enable a company or organization to keep the accounts intact or equal with the book balance and bank balance of the company or organization. The format for bank reconciliation statement is it will contain the departmental opening balance cheque payments and other payments, amount directly debited by the bank, amount remitted, amount directly credited by the bank, departmental closing balance, amount not cashed,wrong debit if any bank, wrong credit if any bank, amount deposited but not credited yet by the bank and the bank balance. Some business organizations or company will have both drawing account and collection account. Drawing account means both payments and receipts will be transacted in that account. Collection account means only receipts will be transacted in that account. The bank reconciliation statement format is briefly explained below.
Departmental opening Balance:
Add:
Deposits:
Other Deposits:
Total Receipts:
Less:
Cheque Payments:
Other Payments:
Total Payments:
Departmental closing balance
Add:
Uncashed cheque
Less:
Amount not credited by
bank
Bank closing balance.
Some organization will have single bank account for operation. Some organization or company will have multiple bank accounts for operation. So whatever may be the number of bank accounts the bank reconciliation statement format remains same.
