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Procedure for Manual Bank Reconciliations
- Ensure that you have all the bank statements for the period.
- Go to the last Bank Reconciliation. Check the date and balance on the bank statement.
- 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.
- 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.
- Go to the Cash Payments Journal
- Work down the Bank Statement and tick off the corresponding cheques on the Bank Statement and the Journal.
- Enter the bank charges and direct debits to the Cash Payments Journal (Ref: B/S (Bank Statement).
- Note any discrepancies in the amounts for adjustments.
- Tick off corresponding deposits on the Bank Statement and the Cash Receipts Journal.
- Enter unticked deposits on the Bank Statement to the Cash Receipts Journal (e.g. Interest received, Electronic receipts)
- Investigate the adjustment entries for bank error or data entry error and correct by data entry to the Journals or phoning the bank.
- The unticked entries in the journals usually consist of unpresented cheques and outstanding deposits not yet recorded at the bank.
- Prepare the bank reconciliation in the format below including any bank errors.
Bank Reconciliation as at 30 June 07 |
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Balance as per
Bank Statement 30 June 07 |
$2,050.00 |
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Less
Unpresented Cheques |
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21.05.07 Cheque 201456 |
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$100.00 |
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25.06.07 Cheque 201660 |
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$200.00 |
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29.06.07 Cheque 201766 |
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$100.00 |
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30.06.07
Cheque 201990 |
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$300.00 |
$700.00 |
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$1,350.00 |
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Plus
Outstanding Deposits |
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30.06.07 |
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$1,000.00 |
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Balance as per
Ledger 30 June 07 |
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$2,350.00 |
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