How to Prepare Bank Reconciliation (Easy Tutorial Video) - Episode 8
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- Опубліковано 5 сер 2024
- #BANKRECONCILIATION #ACCOUNTING #THECPARECIPE
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Outline:
In this episode 8 of the Accounting Haist Basic Accounting Lecture series, we discuss:
1. Why do we need to prepare a Bank Reconciliation Statement?
2. What are the reasons for the differences betwwen Cash in Bank and Bank Statement balances?
3. What is Bank Statement?
4. What are Book Reconciling Items?
5. What are Bank Reconciling Items?
6. What are Credit and Debit Memos?
7. What is a Deposit in Transit?
8. What is an Outstanding Check?
9. What are the 3 Methods of Bank Reconciliation?
10. How to prepare the Adjusted Balance Method?
11. How to prepare the Book to Bank Method?
12. How to prepare the Bank to Book Method?
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OVERVIEW:
Business transactions often involve very significant amounts of cash and occur frequently every accounting period. This makes the use of cash impractical. Consequently, businesses open a current or demand deposit account to banks to facilitate transaction settlements.
Ideally, the Cash in Bank account should always equal the bank's liability account for its depositor. However, this is not the case. Differences occur due to:
1. Omissions;
2. Timing differences; and
3. Errors
These can further be classified into:
1. Book Reconciling Items:
1.a. Credit Memos
1.b. Debit Memos
1.c. Errors by the Entity
2. Bank Reconciling Items:
1.a. Deposit in Transit
1.b. Outstanding Check
1.c. Errors by the Bank
There Reconciling Items are used in 3 Methods to Prepare Bank Reconciliation:
1. Adjusted Balance Method
2. Book to Bank Method
3. Bank to Book Method
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Links to Other Episodes:
Episode 1: What is Accounting?
• What is Accounting? Fr...
Episode 2: Mastering the Rules of Debits and Credits
• Debits & Credits and P...
Episode 3: Sole Proprietorship, Partnership, Corporation & Limited Liability Company (LLC)
• Sole Proprietorship, P...
Episode 4: Interactive Journal Entry Exercises - Answer Along!
• Journal Entry Preparat...
Episode 5: Posting and Making Trial Balance Tutorial Video
• How to Post to General...
Episode 6: Adjusting Entries (Accruals and Deferrals)
• Adjusting Entries: Wha...
Feel free to comment on what you think about the lesson. Enjoy!
Episode 7.1: Bad Debts, Uncollectible Accounts, Doubtful Accounts (Accounting Tutorial Video)
• How to Account for Bad...
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If you liked this episode and you agree with me now that Bank Recon is easy, comment down: "Ang dali lang pala ng Bank Recon!" and feel free to add your own twist. ;)
Sir, may tutorials din po ba for Financial Statements?
Btw, thank you po for sharing your knowledge to us 🤗🖤
deserves more views
Thanks for the compliment. What year are you in?
Ang dali lang pala ng bank recon 😊
Ayun oh. Glad to know another one learned bank recon. 😊
Paano pag outstanding check from previous month. paano po sya ibawas pag Adjusted Balance method
From the name itself, "outstanding checks from previous month."
Generally speaking, if previous month siya outstanding, ibig sabihin hindi na siya outstanding ng current month. Ang criteria lang diyan ay kung cleared na ba ang cheque or hindi pa. That's why in the video I made clear that the way to do it is to compare the bank statement with the cash disbursements book.
ANG DALI LANG PALA NG BANK RECON🙂
Niiice! ❤️
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