Bank reconciliation is one of the important accounting procedure to ensure the correctness of the bank balance with the department accounts balance.
In order to reconcile and ensure the correctness of the bank balance with the department accounts balance
department accounts books like payment cashbook, receipt cash book should be maintained correctly.
Entries in the payment cash book and receipt cashbook should be entered then and there on completion of each and every transaction.
At the end of the month on getting the monthly statement from the merchant's bank or company's bank, each and every transaction both payment and receipt should be reconciled. It means whether all the cheques presented for payment has been en cashed and all the deposits in te bank have been properly credited.
If any cheque has not been en cashed necessary adjustments should be made in the bank reconciliation statement.
If any deposits have not been credited necessary adjustments should be made in the bank reconciliation statement.
On making necessary adjustments for the un cashed amounts and deposits yet to be credited in the bank reconciliation statement the bank balance and the department book balance should be arrived.
In order to reconcile and ensure the correctness of the bank balance with the department accounts balance
department accounts books like payment cashbook, receipt cash book should be maintained correctly.
Entries in the payment cash book and receipt cashbook should be entered then and there on completion of each and every transaction.
At the end of the month on getting the monthly statement from the merchant's bank or company's bank, each and every transaction both payment and receipt should be reconciled. It means whether all the cheques presented for payment has been en cashed and all the deposits in te bank have been properly credited.
If any cheque has not been en cashed necessary adjustments should be made in the bank reconciliation statement.
If any deposits have not been credited necessary adjustments should be made in the bank reconciliation statement.
On making necessary adjustments for the un cashed amounts and deposits yet to be credited in the bank reconciliation statement the bank balance and the department book balance should be arrived.
