On a particular date, reconciliation of our bank balance with the balance of bank passbook is called bank reconciliation. The bank reconciliation is a statement that consists of:
● Balance as per our cash book/bank book
● Balance as per pass book
● Reason for difference in both of above
This statement may be prepared at any time as per suitability and requirement of the firm, which depends upon the volume and number of transaction of the bank.
In these days, where most of the banking transactions are done electronically, the customer gets alerts for every transaction. Time to reconcile the bank is reduced more.
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BANK RECONCILIATION STATEMENT |
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Particulars |
Debit Bank Balance as per Bank Book |
Credit Bank Balance as per Bank Book (overdraft) |
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Balance as per Bank Book |
50,000 |
-50,000 |
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1. Add: Cheque issued to parties but not presented in bank |
3,25,000 |
3,25,000 |
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2. Less: Cheque deposited in bank but not cleared yet |
-50,000 |
-50,000 |
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3. Less: Bank Charges debited by bank but not entered in our books of accounts |
-1,200 |
-1,200 |
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4. Less: Bank interest charged by bank but not entered in our books of accounts |
-10,000 |
-10,000 |
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5. Add: Payment direct deposited by party without intimation to us |
1,75,000 |
1,75,000 |
|
Balance as per Bank Pass Book/ Statement |
4,88,000 |
3,88,000 |