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Question What is bank reconciliation? What is the objectives of the bank reconciliation statement?
Question What is bank reconciliation? What is the objectives of the bank reconciliation statement?
Solutions
Expert Solution
Step 1: Definition of the bank reconciliation
Bank reconciliation is a statement that shows the difference between a bank passbook and a company’s books. Bank reconciliation statement includes deposit, withdrawal, and other activities. The bank reconciliation statement is prepared when there is a difference between the bank account balance and the company’s books balance.
Step 2: Objectives of bank reconciliation statement
To show accurate bank balance:
The first objective of the bank reconciliation statement is to correct the bank balance because there are some errors in the bank balance.
Identify the difference between the cash book and the bank statement:
The next objective of the bank reconciliation statement is to identify the reason that makes the difference between the cash book and the bank statement.
Adjust the item in the cash book:
The next objective of the bank reconciliation statement is to adjust the items of the cash book that is present in the bank statement
Answer
Bank reconciliation is a statement used to adjust the balance of the bank account and company’s books.
Sahil Dangi answered 2 years agoRelated Solutions
what is a bank reconciliation? what are the steps in preparing a bank reconciliation? what purpose...
what is a bank reconciliation? what are the steps in preparing a
bank reconciliation? what purpose does it serve?
Bank reconciliation The company’s accounting intern has prepared the end-of-January bank reconciliation from the bank statement,...
Bank reconciliation
The company’s accounting intern has prepared the end-of-January
bank reconciliation from the bank statement, and is worried because
the Adjusted Balance amounts do not agree. After reviewing the bank
reconciliation, scroll down for the next steps in helping the
intern.
Murdstone Co.
Bank Reconciliation
January 31, 20Y5
1
Cash balance according to bank statement
$23,557.98
2
Deduct deposit of May 31, not recorded by bank
12,125.25
3
$11,432.73
4
Add outstanding checks:
5
No. 124
$62.00
6
No....
Question 4 [27] The following bank reconciliation statement was prepared by the bookkeeper of Veggie Stores...
Question 4 [27]
The following bank
reconciliation statement was prepared by the bookkeeper of Veggie
Stores for January 2020. The financial year of the business ends in
January each year.
Bank overdraft as per bank
statement
R35 000
Outstanding deposit on 10 January
2020
R12 900
28 January 2020
R10 000
Outstanding deposit: Cheque received
from B Brother dated 24 February 2020
R1 800
Outstanding cheques:
No. 1642 (dated 20 July 2019)
R7 000
No. 9172 (dated 25 January 2020)...
Question 4 [27] The following bank reconciliation statement was prepared by the bookkeeper of Veggie Stores...
Question 4 [27]
The following bank
reconciliation statement was prepared by the bookkeeper of Veggie
Stores for January 2020. The financial year of the business ends in
January each year.
Bank overdraft as per bank
statement
R35 000
Outstanding deposit on 10 January
2020
R12 900
28 January 2020
R10 000
Outstanding deposit: Cheque received
from B Brother dated 24 February 2020
R1 800
Outstanding cheques:
No. 1642 (dated 20 July 2019)
R7 000
No. 9172 (dated 25 January 2020)...
A bank reconciliation is a. A formal financial statement that list all of the bank account...
A bank reconciliation is
a. A formal financial statement that list all of the bank account
balances of an enterprise.
b. A merger of two banks that previously were competitors.
c. A statement sent by the bank to depositor on a monthly
basis.
d. A schedule that accounts for the differences between an
enterprise’s cash balance as
shown on its bank statement and the cash balance shown in its
general ledger.
Q4. What is the bank reconciliation? why is it important for companies to prepare bank reconciliation...
Q4. What is the bank reconciliation? why is it important for
companies to prepare bank reconciliation periodically?
What is the bank reconciliation? why is it important for companies to prepare bank reconciliation periodically?
What is the bank reconciliation? why is it important for companies to prepare bank reconciliation periodically?
What is the bank reconciliation? why is it important for companies to prepare bank reconciliation periodically?
Q1-A.
What is the bank reconciliation? why is it important for companies to prepare bank reconciliation periodically?
Q1-B
A company that uses a perpetual inventory system made the following cash purchases and sales. There was no beginning inventory.
January 1:
Purchased 30 units at SAR11 per unit
February 5:
Purchased 30 units at SAR 13 per unit
March 16:
Sold 50 Units for SAR 15 per unit
A.Prepare general journal entries to record the March 16 sale using the...
Bank reconciliation statement questions under intermediate Accounting
Bank reconciliation statement questions under intermediate
Accounting
QUESTION 2 The bank reconciliation statement on 30 September 2018 included the following: Outstanding cheques...
QUESTION 2
The bank reconciliation statement on 30 September 2018
included the following:
Outstanding cheques
Cheques not yet presented for payment No. 148 (Dated 10 November
2017) No. 358 (Dated 10 October 2018)
No. 400 (Dated 15 October 2018)
Debits
R 17.00 R 360.00 R 956.50
Credits
R1 255.00
The bank statement on 31 October 2018 showed a favourable balance
of R25 427.50. The general ledger account on the 1 October 2018
showed a debit balance of R25...
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