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                                                Bank Reconcilation 

Business Solution


1. Vouching

2. Journal Entry

3. Bank Reconciliation

4. Party Reconciliation (Debtors & Creditors)

5. Sales, purchase, payment, receipt, debit note, credit note

6. Inventory

7. Costing

8. Cost centres (project wise)

9. Preparation and finalisation of P/L & B/s…etc various things

                                                              Bank Reconcilation

Bank reconciliation statement is a document that compares the cash balance on a company’s balance sheet to the corresponding amount on its bank statement. Reconciling the two accounts helps identify whether accounting changes are needed. Bank reconciliations are completed at regular intervals to ensure that the company’s cash records are correct. They also help detect fraud and any cash manipulations.

Bank Reconciliation Procedure : –

  1. Debuct any outstanding checks.
    2. This will give the acclimated bank/cash balance.
    3. Using the cash balance shown on the bank statement, add back any deposits in conveyance.
    4. Next, use the company’s ending cash balance, add any interest earned, and note the delinquent quantum.
    5. Abate any bank service fees, penalties, and NSF checks. This will arrive at the acclimated company cash balance.
    6. After Reconciliation, the acclimated bank balance should match with the company’s ending acclimated cash balance.
    7. On the bank statement, compare the company’s list of issued checks and deposits to the checks shown on the statement to identify uncleared checks and deposits in conveyance.

Other Point: –

  1. It helps to identify frauds.
    2. It helps to maintain responsibility.
    3. It helps to catch fiscal miscalculations.
    4. The  statement confirms that payment has been reused and cash collections.
    5. It ensures the business’s internal fiscal record reflects the cash inflow statement and shareholders make decisions on behalf of the fiscal statement.