(سمستر سوم) حسابداری Accounting III

  

Principles Of Accounting 

Third Semester , Finance Section

Financial Assets Chapter 7  

     Reconciling the Bank Statement

Reconciling the bank statement

A bank reconciliation is a schedule explaining any differences between the balance shown in the bank statement and the balance shown in the depositors accounting records.

Each month the depositor should prepare a bank reconciliation to verify that these independent sets of records are in agreement .

Normal Differences between bank records and accounting records:

The balance shown in a monthly bank statement seldom equals the balance appearing in the depositor's accounting record.

Certain transactions recorded by the depositors may not have been recorded by the bank. The most common examples are :

• Outstanding Checks: checks issued and recorded by the company , but not yet presented to the bank for payment.
• Deposits in Transit : Cash receipts recorded by the depositor , but that reached the bank too late, to be included in the bank statement for the current month. In addition , certain transactions appearing in the bank statement may not have been recorded by the depositor. For example :
• Service Charges
• Charges for Depositing NSF Checks
• Credits for interest earned
• Miscellaneous Bank Charges and Credits

STEPS IN PREPARING A BANK RECONCILLIAION

The specific steps in preparing bank reconciliation are as follows:

1. Compare deposits listed on the bank statement with the deposits shown in the accounting records.
2. Arrange paid checks in sequence by serial numbers, and compare each check with the corresponding entry in the accounting records.
3. Add to the balance per the depositors accounting records, any credit memoranda issued by the bank that have not been recorded by the depositor.
4. Deduct from the balance per the depositors records, any debit memoranda issued by the bank that have not been recorded by the depositor.
5. Make appropriate adjustments to correct any errors in either the bank statement or the depositor accounting records.
6. Determine that the adjusted balance of the bank statement is equal to the adjusted balance in the depositor's records.
7. Prepare journal entries to record any item in the bank reconciliation listed as adjustments to the balance per depositor's records.

Parkview Company Bank Reconciliation July 31 , 2008

Balance per bank statement, July 31 2001………………………………$5,000.17 Add : Deposit of July 31 , not recorded by the bank………………….$410.90                                                                                             $5,411.07 Deduct : Outstanding Checks :               No.801…………………………………………………….$100.00               No.888………………………………………………………$10.25               No.890……………………………………………………..$402.50               No.891……………………………………………………..$205.00   717.75 Adjusted Cash balance ………………………………………………………....$4,693.32 Balance per depositor's records , July 31 2001……………………………$4,262.83 Add : Note Receivable collected for us by bank…………..$500.00      Interest earned during July …………………………………..$24.74     $524.74                                                                                               $787.57 Deduct : Collection fee ……………………………………………..$5.00         NSF  Check of J.B.Ball……….,……………………………$50.25         Service Charge………………………………………………$12.00         Error on Check Stub No.875……..........................$27.00      94.25 Adjusted Cash Balance (as above )……………………………………………$4,693.32