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Bank Reconciliations

  indent Procedure for Manual Bank Reconciliations

  1. Ensure that you have all the bank statements for the period.

  2. Go to the last Bank Reconciliation. Check the date and balance on the bank statement.

  3. Draw a line immediately over the last reconciled balance on the bank statement. Only entries between the last reconciliation balance and the current balance will be relevant.

  4. Tick off unpresented cheques and outstanding deposits on the last Bank Reconciliation as they appear on the Bank Statement. Also tick these amounts on the bank statement.

  5. Go to the Cash Payments Journal

  6. Work down the Bank Statement and tick off the corresponding cheques on the Bank Statement and the Journal.

  7. Enter the bank charges and direct debits to the Cash Payments Journal (Ref: B/S (Bank Statement).

  8. Note any discrepancies in the amounts for adjustments.

  9. Tick off corresponding deposits on the Bank Statement and the Cash Receipts Journal.

  10. Enter unticked deposits on the Bank Statement to the Cash Receipts Journal (e.g. Interest received, Electronic receipts)

  11. Investigate the adjustment entries for bank error or data entry error and correct by data entry to the Journals or phoning the bank.

  12. The unticked entries in the journals usually consist of unpresented cheques and outstanding deposits not yet recorded at the bank.

  13. Prepare the bank reconciliation in the format below including any bank errors.
 
Bank Reconciliation as at 30 June 07
Balance as per Bank Statement 30 June 07 $2,050.00
Less Unpresented Cheques
21.05.07  Cheque 201456 $100.00
25.06.07  Cheque 201660 $200.00
29.06.07  Cheque 201766 $100.00
30.06.07 Cheque  201990 $300.00 $700.00
$1,350.00
Plus Outstanding Deposits
30.06.07 $1,000.00
Balance as per Ledger  30 June 07 $2,350.00