Bank Reconciliation Statement -2 HS Commerce
Before going to prepare reconciliation it is essential to know
the accounting entry that is made while recording any transactions in the Cashbook. I think all are more or less acquitted with the transactions. I am
telling it once again.
In every transaction, there are two sides one is either the bank
accounts will be debiting or crediting by the business office as well as the bank.
Hence there are two-part Debit and Credit. Suppose A cheque was deposited with a bank
on 25.03.2021 for Rs.5000.00.
The entry will be Bank A/C Debit and Party or cash accounts Cr
if double-entry contra type book is maintained I,e, you must debit the bank
account. On another side after encashment of the cheque, the bank will credit the Bank
accounts.
Now the difference in both the books only arises when one side
entry is missed or entered wrongly.
Suppose in the above transaction at the time of deposition you
have entered the entry by debiting the bank accounts but till 31.03.2021 bank
has not collected the money of the cheque and thus not credited their bank
account. Hence bank balance will differ due to not being recorded by the bank. I,e,
in the transaction there is only debit by you and no credit by the bank yet. I
think you have understood the situation.
Another example, suppose a customer directly deposited with your
bank accounts for Rs.5000.00 but due to information you have not yet recorded
the same in the cash book. In that case, the bank will credit the bank A/C but you have not debited your bank accounts
as of 31.03.2021. So the difference is due to one side Credit entry at the bank.
So from the above clarification, it is clear that the difference of
both the bank balance happens due to either one-sided debit or credit. Now preparation
techniques will be discussed in the next class.
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