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Chapter 8: Bank Reconciliation Statement - Coggle Diagram
Chapter 8: Bank Reconciliation Statement
Bank Statement and Cash Book
Example of payment and charges
direct debits
standing orders/instructions
bank charges
Example of receipts
dividens
interest on current accounts
deposits of cash or cheques
Item has been recorded in the bank account but already recorded by the business
Unpresented Cheques
Uncredited Lodgement or Unncredited Cheques
Item have been recorded on the bank account but not yet recorded by the business
Bank service charge
Bank GIRO credit or credit transfer
Standing instruction/order
Interest revenue on current assets
Direct debit
Dishonoured Cheque
Error
Made by the business
Recording the amount to be debited or credited
Transaction are debited to the cash book instead of being credited
Made by the bank
Wrongly debited the bank statement, the amount must be subtracted
Opening balance disagreements
Overdraft
The process of preparing the bank reconciliation statement
Updating the bank account
Item appearing on the bank statement but not in the bank account are transferred to the bank account
The necessary double entry will the be completed and the balance of the bank account will be carried down
Preparing the bank reconciliation statement
Start with the updated the bank account balance or with the balance as per the bank statement