learning outcomes identify in both the cash book and the bank statement, the receipts and payments...
DESCRIPTION
Reasons why the cash book and bank statement may differ – Timing Differences Unpresented Cheques – the time delay between writing out a cheque and recording it in the cash book, and the cheque being entered on the bank statement.TRANSCRIPT
Learning Outcomes Identify in both the cash book and the bank Identify in both the cash book and the bank
statement, the receipts and payments that statement, the receipts and payments that appear in both.appear in both.
Identify items that are unticked on the bank Identify items that are unticked on the bank statement and enter them in the cash book.statement and enter them in the cash book.
Balance the bank columns of the cash book.Balance the bank columns of the cash book. Prepare a Bank Reconciliation Statement Prepare a Bank Reconciliation Statement
starting with the revised cash book balance.starting with the revised cash book balance. Prepare a Bank Reconciliation Statement Prepare a Bank Reconciliation Statement
starting with the Bank Statement balance.starting with the Bank Statement balance.
Bank Reconciliation Statement
Bank Reconciliation Statements form a link between the balance at bank shown in the cash book and the balance shown on the bank statement received from the bank.
Reasons why the cash book and Reasons why the cash book and bank statement may differ – bank statement may differ – TimingTiming DifferencesDifferences
Unpresented ChequesUnpresented Cheques – – the time delay between writing out a the time delay between writing out a cheque and recording it in the cash cheque and recording it in the cash book, and the cheque being entered on book, and the cheque being entered on the bank statement.the bank statement.
Reasons why the cash book and Reasons why the cash book and bank statement may differ – bank statement may differ – TimingTiming DifferencesDifferences
Outstanding Lodgements -Outstanding Lodgements -Amounts paid into the bank, but not yet Amounts paid into the bank, but not yet recorded on the bank statement.recorded on the bank statement.
Updating the Cash BookUpdating the Cash Book
Receipts – standing order and BACS Receipts – standing order and BACS receipts (payments from Debtors), interest receipts (payments from Debtors), interest received.received.
Payments – standing order and direct Payments – standing order and direct debit payments, bank charges.debit payments, bank charges.
CASH BOOK (Bank Column Only)
19971 Feb7 Feb
14 Feb21 Feb27 Feb28 Feb
1 Mar
Balances b/dA. AbbottCashD. Richards Ltd.CashP. Paul Ltd.
Balance b/d
1340.50208.50500.00162.30500.00262.30
19973 Feb
12 Feb17 Feb25 Feb28 Feb
Appleton Ltd. 123456Rent 123457D. Smith & Co. 123458G. Christie 123459
Balance c/d
675.25125.00421.80797.55
954.00
2973.60 2973.60
954.00
Bank StatementDate Particulars Payment
sReceipts Balance
19971 Feb8 Feb
10 Feb
17 Feb
17 Feb
24 Feb
24 Feb
26 Feb
26 Feb
28 Feb
28 Feb
Balance b/dCreditCheque No. 123456CreditCheque No. 123457CreditBACS credit : J. Jarvis LtdCheque No. 123458Direct Debit : A-Z FinanceCreditBank Charges
£675.25125.00421.80
150.0010.00
£208.50500.00162.30
100.00500.00
£1340.50
CR1549.00
CR873.75 CR
1373.75 CR
1248.75 CR
1411.05 CR
1511.05 CR
1089.25 CR
939.25 CR1439.25
CR1429.25
CR
Bank StatementDate Particulars Payment
sReceipts Balance
19971 Feb8 Feb
10 Feb17
Feb17
Feb24
Feb24
Feb26
Feb26
Feb28
Feb28
Feb
Balance b/dCreditCheque No. 123456CreditCheque No. 123457CreditBACS credit : J. Jarvis LtdCheque No. 123458Direct Debit : A-Z FinanceCreditBank Charges
£675.25125.00421.80
150.0010.00
£208.50500.00162.30
100.00500.00
£1340.50
CR1549.00
CR873.75 CR
1373.75 CR
1248.75 CR
1411.05 CR
1511.05 CR
1089.25 CR
939.25 CR1439.25
CR1429.25
CR
CASH BOOK (Bank Column Only)
19971 Feb7 Feb
14 Feb21 Feb27 Feb28 Feb
1 Mar24 Feb
1 Mar
Balances b/dA. AbbottCashD. Richards Ltd.CashP. Paul Ltd.
Balance b/dJ. Jarvis Ltd.
Balance b/d
1340.50208.50500.00162.30500.00
262.30
19973 Feb
12 Feb17 Feb25 Feb28 Feb
26 Feb28 Feb28 Feb
Appleton Ltd. 123456Rent 123457D. Smith & Co. 123458G. Christie 123459Balance c/d
A-Z FinanceBank ChargesBalance c/d
675.25125.00421.80
797.55954.00
2973.60 2973.60
954.00100.00
150.0010.00
894.00
1054.00 1054.00
894.00