Describe the purpose and steps of the bank reconciliation.
Describe the purpose and steps of the bank reconciliation.
Homework Answers
Bank reconciliation: Bank reconciliation is considered as the method of comparing the balances. The comparison is basically done for a cash account in the accounting records of an organization with the related details on a bank statement.
Purpose of the process is to compare a record with the records of bank in order to analyze any difference in the cash transitions. It also works to book appropriate changes to the banking record.
The bank reconciliation is a multi-step process as it process toward the alignment of internal records with the records in the accounts department of the bank. These steps involve:
- Access bank records: This involve the user to access the online bank statement that has been provided by the bank.
- Access required software: this involve the user to check the bank reconciliation module. This module is present in the accounting software.
- Update all the unclear checks: this stage proceeds to the checks section of the module. This brings up the list of unclear checks that can be compared to the checks that are cleared by the bank.
- Update the deposits in the transit: This stage directs the user toward the deposits section of the module. A comparison of the list of deposits with the list of deposits that are cleared by the banks can bring up issues such as unrecorded deposits by the user and the deposits that are not recorded by the bank.
- Enter new expenses such as the not sufficient fund fees, check printing fees and the service fees
- Enter the bank balance: This involve the user to enter the ending cash balance that has been noted on the statement of bank.
- Review the reconciliation: this stage involve the software to present difference in the ending cash balance in addition to the outstanding checks and the deposits.
- Continue investigation: it involve the user to review the bank reconciliation process in case of any undocumented outstanding checks or the deposits
- Adjust for immaterial items: It involve acceptance to the record in case of immaterial difference.
Describe the purpose and steps of the bank reconciliation.
Describe the purpose and steps of the bank reconciliation.
In your own words, explain the purpose and timing of the process of bank reconciliation.
In your own words, explain the purpose and timing of the process of bank reconciliation.
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The correct order in which the steps in the bank reconciliation process occur is: 1. Tick...
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Prepare the bank section of the bank reconciliation, then the book section of the bank reconciliation.
Prepare the bank section of the bank reconciliation, then the
book section of the bank reconciliation.F. L. HarrisonBank ReconciliationAugust 31, 2015
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bank reconciliation the following dada were accumulated for use in reconciliation gonna in the bank account...
bank reconciliation the following dada were accumulated for
use in reconciliation gonna in the bank account of Creative Design
Co. for August 20Y6
Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6: 1. Cash balance according to the company's records at August 31, $42,920. 2. Cash balance according to the bank statement at August 31, $56,300. 3. Checks outstanding, $25,390. 4. Deposit in transit not recorded by bank,...
The correct order in which the steps in the bank reconciliation process occur is: 1. Tick off the items in the prior reconciliation with the bank statement 2. Prepare the bank reconciliation 3. Tick off the cash journals with the bank statement 4. Update the cash journals with unticked items from the bank statement Select one: O a. 1,4,3,2 O b. 1, 2, 3, 4 O c. 1, 3, 4,2 O d. 4, 3, 2, 1
Prepare the bank section of the bank reconciliation, then the
book section of the bank reconciliation.F. L. HarrisonBank ReconciliationAugust 31, 2015
Bank Reconciliation The company's accounting intern has prepared the end-of-January bank reconciliation from the bank statement, and is worried because the adjusted balance amounts do not agree. After reviewing the bank reconciliation, scroll down for the next steps in helping the intern. Murdstone, Inc. Bank Reconciliation January 31, 2045 Cash balance according to bank statement $23,557.98 Adjustments: 12,125.25 Add: Deposit in transit on January 31 Deduct: Outstanding Check No. 124 Outstanding Check No. 125 Outstanding Check No. 129 $(62.00) (42.00)...
Bank Reconciliation An accounting clerk for Muskegon Co. prepared the following bank reconciliation: Muskegon Co. Bank Reconciliation May 31, 2016 Cash balance according to company's records $6,910 Add: Outstanding checks $3,320 Error by Muskegon Co. in recording Check No. 2219 as $710 instead of $170 540 Note for $10,800 collected by bank, including interest 11,230 15,090 $22,000 $7,030 Deduct: Deposit in transit on May 31 30 7,060 Bank service charges $14,940 Cash balance according to bank statement data in this...
bank reconciliation the following dada were accumulated for
use in reconciliation gonna in the bank account of Creative Design
Co. for August 20Y6
Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6: 1. Cash balance according to the company's records at August 31, $42,920. 2. Cash balance according to the bank statement at August 31, $56,300. 3. Checks outstanding, $25,390. 4. Deposit in transit not recorded by bank,...
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