Question

Final Discussion

Part 1: Bank Reconciliations

Each week, you are very careful to record each business transaction carefully and accurately. You are quite sure you have recorded everything correctly, so why would you need to do a bank reconciliation? In your post, share with your classmates what benefits a bank reconciliation provides and how often you feel a reconciliation should be performed at your restaurant.

Part 2: Applying What You Learned

As the course draws to a close, review the progress you have made. Now that you have a better understanding of the accounting cycle and the role accounting plays in helping an organization be successful, how do you feel about accounting? In your post, share with your classmates how you can apply what you have learned in this course to improve the performance of the organization where you work, or perhaps your own business now or in the future.

Answer 1

A bank reconciliation statement is a statement that reconciles, that is tallies the banking tranactions with that of the financial records, that is the books of accounts and adjusts for the missing transctions or erros in the bank book as per the financial records. It aids in reconciliation of the bank column of the cash book.

Although every week transactions are recorded with utmost care but there are always are chances of errors and further if not errors there are always chances in case of banking transactions of checks being in transit or bank charges being imposed but company being unaware of the same, therefore to overcome such issues it is important to prepare a bank recocniliation statement so as to check the sanctity of the transaction.

It helps in determining exact balance as on a particular date.

The advanatges of a bank reconciliation statement are as follows:

The most crucial reason and the primary advanatge of a BRS is that it helps in detecting errors. The errors can be addition, subtraction, missing tranactions, dual entry of same transaction etc.

The next advantage that it helps us identify if the bank has imposed any interest or fee of which we are unaware, so that the same can be confirmed.

Thirdly, BRS helps us to keep a record of receivables of the company, it helps to track if any deposits are in transit or receipts that haven't been deposited.