Question

FINTECH LIMITED

BANK RECONCILIATION STATEMENT

You are working as an Accounts Manager in Fintech Limited. Assume that the month of August 2017 has just ended and you received a bank statement showing an overdraft balance of £20,000. The balance recorded in the company's cash book is a credit balance of £ 12,100.

1) Lodgements not yet cleared by the bank (i.e. payments recorded in the cash book but not recorded in the bank statement) £ 24,300

2) Cheques not yet presented (i.e payments from the account recorded in the cash book but not yet processed through the bank) £ 18,900

3) Bank charges of £ 1300

4) A dishonoured cheque from a customer £ 1,200

Items (3), (4) and (5) have not yet been recorded in the cash book.

Required:

Prepare a bank reconciliation statement as on 31st August 2017

Answer 1

Preparation of Bank Reconciliation Statement: -£ Balance as per Cash book Less: Lodgements not yet cleared by the bank Add: Cheques not yet presented Less: Bank Charges Less: Dishonoured cheque from customer Adjusted Cash Balance 43 48 484 12,100.00 24,300.00 18,900.00 1,300.00 1,200.00 20,000.00 Balance as Per Bank Statement 4 20,000.00 Any Differences 4