These stuff are gold, just binged 3 series in a row and every episodes are clearly explained and well structured for students to understand. Thank you sir.
Hey Lydia 😊 You’re so very welcome! I’m happy to hear that you’re finding them helpful ❤️ And there are many videos here for you to look at to help you with your poa journey. Wishing you all the best and if you have any questions, please don’t hesitate to reach out
Huge huge help in bringing clarity to the topic. Systematic, clear tutorials with worked examples. I thank you for offering these for us to learn from.
Well explained sir, I can't thank you enough, definitely sharing this with my friends who can benefit from this, this can be quite a complicated topic for beginners and I learned it all from you, my school lecturer never teaches the basics for every students to understand. Again THANK YOU SM!
Why didnt my teacher teach me this part of the bank reconciliation statement 😢 he only mentioned the first part of this series, I didn't know additional information like this could appear
What if the Bank Statement shows an overdraft balance as well as the Cashbook? Does that affect whether you less unpresented cheques, or add late lodgments? I don't see that aspect i your table summary at 8:22....
Hi Robert 😊 Most teachers I know reverse the “rules” for the treatment of those items when dealing with overdrafts as opposed to regular balances. I think that adds an unnecessary additional mental load. I simply treat the overdraft balance as a negative value which is essentially what it is. This way we keep the adjustments for the items the same. For example, if we started with a bank statement balance (overdraft), say $1,000, and we had unpresented cheques of $200 and bank lodgments of $500 we would do the following: -$1,000 - $200 + $500 = -$700 The unpresented cheques would increase the overdraft (hence a bigger negative balance) and the bank lodgments would decrease the over draft, hence the smaller negative balance. Hope that helps 😊 Let me know if you have any further questions.
@N.aesth1 oh ok! So in the bank rec statements we don’t put dishonored chqs, that goes in the updated cash book. That’s because the bank statement wouldn’t reflect the dishonored chq as the bank would actually be the first to find out that the chq was dishonored and then they wouldn’t put it in the bank statement. I’m not sure what an unrealized chq is 🤔 maybe one that’s undeposited and then it expires or stale dates? If that’s the case, the same logic applies. The chq was never deposited and as such wouldn’t be reflected in the bank statement. It would only have been recorded in the cash book and the adjustment would have to be made there. Hope that helps If you have any more question please feel free to let me know.
Hi sir, i love your videos they are really helpful. I have a question, how come when you use the balance as per adjusted cash book in the bank rec statement, the balance as per adjusted bank statement is not the same as the balance c/d in the updated cash book? isn't it supposed to be the same?
Hi Ruqayyah 😊 Thanks for watching! Glad you’re enjoying and learning from the videos. Could you type the time in the video to which you’re referring? Like this 12:34 And I can click on it and see exactly what you’re referring to and I can answer your question Thanks 😊
@@adapttuition in the previous videos where you started the bank rec statement with the balance as per bank statement the balance as per adjusted cash book is the same as the balance c/d in the updated cash book how come when you start the bank rec statement with the updated cash book balance, the balance as per bank statement is not the same as the balance c/d in the updated cash book?
Oh, because we start with that balance and reconcile to the bank statement balance. If we start with bank statement we end with cash book (updated) If we start with the cash book balance (updated) we end with the bank statement balance
Hi 😊 thanks for watching! I discuss how to do bank recs with overdrafts in parts 1 & 2 of this bank rev series. Essentially you treat the overdraft as a negative bank balance but everything else remains the same. Check the description for a link to the playlist and in each video look in the description for the time when I deal with the overdrafts, or you can hover your cursor on the timeline of the video and the you’ll see the “chapters” come up and from there you can look for the bank overdrafts section. 😊
sir what if the u started with an overdraft updated cash book balance do the same principles apply or do u reverse (u add lodgements and less unpresented)
An overdraft is a negative balance. So any decreases to the account would increase the overdraft. Teachers like to give separate rules for when there's a regular balance and when there's an overdraft. That's not necessary once you understand the over draft is a negative balance.
Hi! You can use the videos on this playlist to get a feel for how to use the general journal ua-cam.com/play/PL9u_QIMhEllvNgNs2TjcOHjARtfMe5VVN.html You can search "Journal Entries" across my channel and you'll find other videos on partnerships and limited liability companies that show journal entries for them.
Help me. I’m struggling to balance February after successfully reconciling January. Is there a relationship between the months or are the reconciled independently
Hi, that's interesting that you have a multi-month question. Items from the bank rec in one month can appear on the bank rec in another month if they have not yet been presented/cleared. To better advise you I'd need to see the question. You can send me a pic via email or on instagram @adapttuition
@@adapttuition it's actually a practical situation. I'm trying to reconcile an account that has never been reconciled before for a year now and I don't know wat to do with transactions that remain unpresented and uncredited accross the periods. And how the adjusted cash balance of one period affects the next period. Or if all the periods are reconciled independently irrespective of the time difference in the transactions.
That’s an interesting situation. You’d probably need the cash book for the entire year as well as the corresponding bank statements. I don’t think that the periods can be reconciled independently as a cheque might be outstanding or unpresented for multiple months. You may have to approach it sequentially (month by month) being sure to properly track the items coming in to and gluing out of the cash book and the bank statement.
@@adapttuition I appreciate your prompt response. Quick question though. Does my adjusted cash balance for one period become the opening balance of the cash book for the next period?
Bank lodgements are cheques should be credited into your account but still need few days to process i assume. Dishonored cheques are cheques that are paid by customer to your bank account but rejected due to insufficient funds or other reasons. Therefore, in the case of non UCB reconciliaton, u are to add back bank lodgements into your bank statement or not all because banks will automatically add it up after a few days. On the other hand, dishonored cheques means that your customers payment to you has failed, so you have deduct the money entered into your cash book by crediting. I am actually just training myself to understand all these stuff, please do not hesitate to correct me.
Sounds good to me. It also depends on whether you’re starting your bank rec with the updated cash book balance or the bank statement balance. Either one is fine.
Hi! I’m sorry but I’m not entirely sure what it is you’re asking about. Could you respond to this reply and include the time in the video to which you are referring like this 03:30?
Maybe you can message me on Instagram @adapttuition and send a pic of what you’re talking about so I can better understand and then answer your question. Because the total on the credit side of the update cash book is just the sum of all the items entered in the credit side. You said “totals” which implies more than one total so that’s what I’m a bit confused about as there’s usually only one total.
Hello sir, I had a question, in your 3rd practice question you less undeposited cheques in your bank reconcilation statement but In your previous video you had Add Also the same thing with unpresented cheques you had less it in your bank reconciliation statement but on your previous video you had add, also Same thing with the bank lodgements can you please clarify I'm quite confused by this
Hi! Thanks for the question. Whether you add or subtract items in the bank rec depends on what you're starting the bank rec with: the bank statement balance (my preference), or the updated cash book balance (what I show in this video). If we start with the bank statement balance we add the bank lodgments and deduct the unpresented cheques. If we start with the updated cash book balance we add the unpresented cheques and deduct the bank lodgments. Hope this helps :)
lol you always saying if something is wrong with the answer let you,, aye we here to learn😂 not teach they better be right lol😂😂😂😂😂 P.S. thank you so so much!!❤️❤️
Hi good day Sir I am not sure what's these statements mean Like *1*.Cheques paid by the bank *2*.Receipts credited by the bank Could u please help me ?
Hi! Maybe if you take a look at the other earlier videos in this bank recs series you will find those answers 😃 I am pretty sure I addressed those items in the videos. If you don’t find the answers you are looking for come back and let me know 😊
If you start the bank rec with the cash book balance then the additions and subtractions are the opposite compared to if you start the bank rec with the bank statement balance.
Hi good day Sir, can you tell me the topics to study for in paper for Jan 2021 cxc poa thank you so much and you do July and Jan 2020 paper 3 please thank you.
Hi, Kareem :) Thanks for watching. I don't know what will come for Jan 2021, no one except the person(s) who set the paper knows. I would say that partnerships appear on almost every paper 2. It is advisable to know your income statements, and balance sheets as well. Other than that they cannot cram an entire syllabus into 5 questions so you're going to have to study as much as you can. Also, I don't have any paper 3s, sorry.
omg I'm soo frustrated i just spend the whole day learning the first methods and now its soo impossible for me to get this one the unpresented cheques thing issss soo contradicting rn because I just cant see why we are adding it smh
All we are really doing is the opposite of the method used in the other video. Think of if this way. We are trying to make the info in both statements the same. Updating the cash book takes info from the bank statement and puts it in the cash book. Then in the bank rec method where you start with the bank statement we take info from the cash book and put it in the bank statement. I prefer that method as I find it’s the more intuitive of the two. However, the question can ask for a bank rec using one method specifically so it’s good to know how to do both.
@@adapttuition yes sir I watched the Video I'm genuinely a slow learner so maybe because I learned the first way the entire day it will take a while for me to learn this one but thanks for the video and response
If you’re having trouble doing a bank rec starting with the cash book balance remember the overarching logic: we are trying to make the info between both the cash book and the bank rec symmetrical. So normally we update the cash book with info from the bank rec that the cash book doesn’t have. And then if we start the bank rec with the bank statement balance we “update it” with info from the cash book that the bank statement didn’t have. Think of it this way: let’s say the cash book had items {a, b, c} and let’s say the bank statement had items {d, e, f} When we update the cash book we would put the items from the bank statement in the updated cash book. So that means we would take the info from the bank statement {d, e, f} and put it with the info from the cash book {a, b, c} After which the cash book would look like this {a, b, c, d, e, f}. Now if we do the bank rec starting with bank statement balance we essentially “update” the bank statement by “putting info in it” from the cash book that it didn’t have. So we would take the {a, b, c} from the cash book and combine it with the {d, e, f } from the bank statement. After which the bank statement’s info would match the updated cash book’s info {a, b, c, d, e, f}. Now... If we are doing the alternative method where we start the bank rec with the updated cash book balance then... The UCB would have the following info: {a, b, c, d, e, f} The bank statement would have the following info: {d, e, f} Now to make both items have the same info we either: • include the {a, b, c} in the bank st, or • remove the {a, b, c} from the UCB The latter of the two options above is what we have to use if we start the bank Rec with the UCB balance. Think about it this was too: The unpresented cheques represent payments that came out of the cash book BUT the have not yet come out of the bank statement. We can either: • deduct them from the bank statement balance in the bank rec (if we started with the bank st balance), which is like including the {a, b, c} together with the {d, e, f} or, • add the unpresented cheques back to the UCB balance to make it match with the bank st balance (which is like removing the {a, b, c} from the UCB balance which has {a, b, c, d, e, f} which will leave {d, e, f} and make the info between both items the same Also, we would need to deduct the bank lodgments from the UCB balance because those are increases that are in the cash book but not in the bank statement. So to make the info between both items the same we would do either of the following: • add the bank lodgments to the bank st balance to have those increases match the increases in the UCB, or • deduct the bank lodgments from the UCB balance so that the lodgments are missing from BOTH the UCB and the bank st.
Now seeing this response. Don’t worry you will get it. It takes time. Remember I said this topic gave me a lot of trouble when I was in form 4, 5 and 6. I didn’t even understand it until I got to UWI and the textbook explained it very simply. So keep trying! You will get it. I believe in you 😊 And keep asking questions! That’s how you get answers 😊
These stuff are gold, just binged 3 series in a row and every episodes are clearly explained and well structured for students to understand. Thank you sir.
Happy to hear that you are finding the material helpful! Thanks for watching and keep up the good work 😊
SAME JUST BINGED HIS THREE-PART SERIES, THAT IS THE NORM FOR ME THESE DAYS BINGING. THANK YOU FOR EVERYTHING. PLEASE CONTINUE POSTING.
👍🏽😊
Keep up the good work 💪🏽🧠
Legit bruh, revising rn, and I just binge the playlists
If that works, then by all means 😁
@@adapttuition the past paper solutions are also extremely helpful
That was the intention 😊💪🏽🧠
@7:53 scrap the other side of the carr yess🤣🤣😂I weakkk
😂 well, if it works 🤣
Not even doing cxc and still watching your vids for the support keep it up sir👍
I appreciate that a lot 😊
Hope you are doing well!
Best teacher ever, keep up the fantastic work 👍
Thank you! 😃
Good Evening, Thank you so much for making these videos, it has really helped me. I look forward to the others.
Hey Lydia 😊
You’re so very welcome!
I’m happy to hear that you’re finding them helpful ❤️
And there are many videos here for you to look at to help you with your poa journey.
Wishing you all the best and if you have any questions, please don’t hesitate to reach out
Huge huge help in bringing clarity to the topic. Systematic, clear tutorials with worked examples. I thank you for offering these for us to learn from.
Happy to hear that you’re finding the content helpful. Thanks very much for the great comment 😊
A well explained video. Thank you very much.
Glad it was helpful!
Thanks I got a grade 2 in accounts
Hey :) Happy to hear that! Congrats on your success!
Keep up the good work 💪🏾🧠
Finally I understand this thank you sir,you made this sooo simple to do,at every step in an easy approach ❤ 💖 👏
Happy to know you found the content helpful! Keep up the good work and thanks for watching 😊
Well explained sir, I can't thank you enough, definitely sharing this with my friends who can benefit from this, this can be quite a complicated topic for beginners and I learned it all from you, my school lecturer never teaches the basics for every students to understand. Again THANK YOU SM!
Glad it was helpful! And thank you for sharing, I really appreciate it 😊 keep putting in the work, you will get there 💪🏽🧠
I've got POA CXC exams tomorrow and this helped me!!!
Happy to hear that Gayatrie 😊
Keep up the good work 💪🏽🧠
And good luck!
Thank you✅‼️
Happy to help 😊
Sir how uk wen to add or subtract
Hi Meera, if you watch the videos on this playlist i explain how to know when to add and subtract 😊
Why didnt my teacher teach me this part of the bank reconciliation statement 😢 he only mentioned the first part of this series, I didn't know additional information like this could appear
It most certainly can appear. I have no idea why your teacher didn’t show you this. Anyway, let’s focus on the exam that is 1 week away 👍🏽😊
Well explained. Thank you
You’re very welcome! Happy to hear you enjoyed the video and understood the material.
Thanks for watching and keep up the good work! 💪🏽🧠
Exactly what I desired! Thanks
Great to hear!
What if the Bank Statement shows an overdraft balance as well as the Cashbook? Does that affect whether you less unpresented cheques, or add late lodgments? I don't see that aspect i your table summary at 8:22....
Hi Robert 😊
Most teachers I know reverse the “rules” for the treatment of those items when dealing with overdrafts as opposed to regular balances.
I think that adds an unnecessary additional mental load.
I simply treat the overdraft balance as a negative value which is essentially what it is.
This way we keep the adjustments for the items the same.
For example, if we started with a bank statement balance (overdraft), say $1,000, and we had unpresented cheques of $200 and bank lodgments of $500 we would do the following:
-$1,000 - $200 + $500 = -$700
The unpresented cheques would increase the overdraft (hence a bigger negative balance) and the bank lodgments would decrease the over draft, hence the smaller negative balance.
Hope that helps 😊
Let me know if you have any further questions.
@@adapttuition
I got you. The -700 in any case is a bigger figure than a -1000....at least from an arithmetic point of view....Thanks Chris....
Agreed Re the arithmetically point of view 👍🏽😊
Very easy to understand..thanks
You are welcome! Glad to know that you are finding the material accessible :)
Let me know if you have any questions.
8:16 which one chq dishonored and unrealized?
Hi, I’m not seeing any “unrealized” chqs in the video. Did you mean undeposited?
@@adapttuitionNo sir, there are terms like dishonored and unrealized cheques what's the other term used in the table for that?
@N.aesth1 oh ok! So in the bank rec statements we don’t put dishonored chqs, that goes in the updated cash book.
That’s because the bank statement wouldn’t reflect the dishonored chq as the bank would actually be the first to find out that the chq was dishonored and then they wouldn’t put it in the bank statement.
I’m not sure what an unrealized chq is 🤔 maybe one that’s undeposited and then it expires or stale dates?
If that’s the case, the same logic applies.
The chq was never deposited and as such wouldn’t be reflected in the bank statement.
It would only have been recorded in the cash book and the adjustment would have to be made there.
Hope that helps
If you have any more question please feel free to let me know.
@@adapttuition ah yes, got it! thank you!
Thank.you.very.muche.teacher
You are welcome!
thank you.you are the best
You're welcome! Thanks for watching :)
thanks teacher
👍🏽😊
Thankful 🙏
My pleasure! Glad you found the video helpful :)
Wishing you all the best!
Hi sir, i love your videos they are really helpful. I have a question, how come when you use the balance as per adjusted cash book in the bank rec statement, the balance as per adjusted bank statement is not the same as the balance c/d in the updated cash book? isn't it supposed to be the same?
Hi Ruqayyah 😊
Thanks for watching!
Glad you’re enjoying and learning from the videos.
Could you type the time in the video to which you’re referring?
Like this 12:34
And I can click on it and see exactly what you’re referring to and I can answer your question
Thanks 😊
@@adapttuition in the previous videos where you started the bank rec statement with the balance as per bank statement the balance as per adjusted cash book is the same as the balance c/d in the updated cash book how come when you start the bank rec statement with the updated cash book balance, the balance as per bank statement is not the same as the balance c/d in the updated cash book?
Oh, because we start with that balance and reconcile to the bank statement balance.
If we start with bank statement we end with cash book (updated)
If we start with the cash book balance (updated) we end with the bank statement balance
@@adapttuition oh ok thanks so much❤️
Happy to help!
Keep up the good work 💪🏽🧠
When we starting with the bank statement balance we should less unpresented cheque and add bank lodgements?
Hi Avis 😊
Yes, that’s correct.
Even if the bank balance is an overdraft you follow the same steps but remember a overdraft is a negative balance.
@@adapttuition ok. Thank you
You’re welcome
Happy to help 😊
sir how do yk which method of the {bank reconciliation} to use as in this one you're showing us or the previous one you showed in part 1
Sometimes the question specifies which to use. Other times it doesn’t and you’re then free to use whichever method you prefer.
Hi sir, I watched your other videos and I stumbled upon an overdraft in the bank statement. How do I go about this question?
Hi 😊 thanks for watching! I discuss how to do bank recs with overdrafts in parts 1 & 2 of this bank rev series. Essentially you treat the overdraft as a negative bank balance but everything else remains the same. Check the description for a link to the playlist and in each video look in the description for the time when I deal with the overdrafts, or you can hover your cursor on the timeline of the video and the you’ll see the “chapters” come up and from there you can look for the bank overdrafts section. 😊
@@adapttuition thank you sir!
You’re most welcome 😊
sir what if the u started with an overdraft updated cash book balance do the same principles apply or do u reverse (u add lodgements and less unpresented)
An overdraft is a negative balance. So any decreases to the account would increase the overdraft.
Teachers like to give separate rules for when there's a regular balance and when there's an overdraft.
That's not necessary once you understand the over draft is a negative balance.
Loving the hairstyle sir
Thanks 😊 My wife requested it for our wedding 3 months ago and I kept it. Ppl seem to like it 😄
@@adapttuition you're welcome..congratulations by the way
Thank you very much 😊
How do you do the general journal
Hi! You can use the videos on this playlist to get a feel for how to use the general journal ua-cam.com/play/PL9u_QIMhEllvNgNs2TjcOHjARtfMe5VVN.html
You can search "Journal Entries" across my channel and you'll find other videos on partnerships and limited liability companies that show journal entries for them.
pls is bank lodgement the same as uncredited cheques
Hello 😊
They are essentially treated the same way when doing bank recs, yes.
Help me. I’m struggling to balance February after successfully reconciling January. Is there a relationship between the months or are the reconciled independently
Hi, that's interesting that you have a multi-month question. Items from the bank rec in one month can appear on the bank rec in another month if they have not yet been presented/cleared.
To better advise you I'd need to see the question. You can send me a pic via email or on instagram @adapttuition
@@adapttuition it's actually a practical situation. I'm trying to reconcile an account that has never been reconciled before for a year now and I don't know wat to do with transactions that remain unpresented and uncredited accross the periods. And how the adjusted cash balance of one period affects the next period. Or if all the periods are reconciled independently irrespective of the time difference in the transactions.
That’s an interesting situation. You’d probably need the cash book for the entire year as well as the corresponding bank statements.
I don’t think that the periods can be reconciled independently as a cheque might be outstanding or unpresented for multiple months.
You may have to approach it sequentially (month by month) being sure to properly track the items coming in to and gluing out of the cash book and the bank statement.
@@adapttuition I appreciate your prompt response. Quick question though. Does my adjusted cash balance for one period become the opening balance of the cash book for the next period?
Hi, I would imagine it would, yes.
Also, could u please clarify what the difference between bank lodgements and dishonored cheques is?
I explained bank lodgments in first video in this series and NSF cheques was in the second video.
Bank lodgements are cheques should be credited into your account but still need few days to process i assume. Dishonored cheques are cheques that are paid by customer to your bank account but rejected due to insufficient funds or other reasons.
Therefore, in the case of non UCB reconciliaton, u are to add back bank lodgements into your bank statement or not all because banks will automatically add it up after a few days. On the other hand, dishonored cheques means that your customers payment to you has failed, so you have deduct the money entered into your cash book by crediting.
I am actually just training myself to understand all these stuff, please do not hesitate to correct me.
Sounds good to me. It also depends on whether you’re starting your bank rec with the updated cash book balance or the bank statement balance. Either one is fine.
What are totals so far that appear on the credit side of the updated cashbook
Hi! I’m sorry but I’m not entirely sure what it is you’re asking about.
Could you respond to this reply and include the time in the video to which you are referring like this 03:30?
@@adapttuition it's not in the video..... It's a figure I found when studying for updated cashbook and bank reconciliation
Maybe you can message me on Instagram @adapttuition and send a pic of what you’re talking about so I can better understand and then answer your question.
Because the total on the credit side of the update cash book is just the sum of all the items entered in the credit side.
You said “totals” which implies more than one total so that’s what I’m a bit confused about as there’s usually only one total.
Hello sir, I had a question, in your 3rd practice question you less undeposited cheques in your bank reconcilation statement but In your previous video you had Add
Also the same thing with unpresented cheques you had less it in your bank reconciliation statement but on your previous video you had add, also Same thing with the bank lodgements can you please clarify I'm quite confused by this
Hi! Thanks for the question. Whether you add or subtract items in the bank rec depends on what you're starting the bank rec with: the bank statement balance (my preference), or the updated cash book balance (what I show in this video).
If we start with the bank statement balance we add the bank lodgments and deduct the unpresented cheques.
If we start with the updated cash book balance we add the unpresented cheques and deduct the bank lodgments.
Hope this helps :)
lol you always saying if something is wrong with the answer let you,, aye we here to learn😂 not teach they better be right lol😂😂😂😂😂
P.S. thank you so so much!!❤️❤️
😂 I’m here to learn too and I acknowledge that I make mistakes and stay open to being corrected. But I totally understand where you’re coming from 🤣
@@adapttuition lol yess we wouldn't know 😂😂😂😂😂
😄 actually you might, you never know!
Hi good day Sir
I am not sure what's these statements mean
Like
*1*.Cheques paid by the bank
*2*.Receipts credited by the bank
Could u please help me ?
Hi! Maybe if you take a look at the other earlier videos in this bank recs series you will find those answers 😃
I am pretty sure I addressed those items in the videos.
If you don’t find the answers you are looking for come back and let me know 😊
Ohh yes I now understand the second one
However I'm not sure about the first
how do we do bank errors in bank recon using balance of cashbook?
Check out video 2 in this series ua-cam.com/video/tED8BsXCG5k/v-deo.html
@@adapttuition yes I did so is it the same as the one starting from balance of bank statement?
If you start the bank rec with the cash book balance then the additions and subtractions are the opposite compared to if you start the bank rec with the bank statement balance.
@@adapttuition ohhh ok that makes sense. Thanks
Hi good day Sir, can you tell me the topics to study for in paper for Jan 2021 cxc poa thank you so much and you do July and Jan 2020 paper 3 please thank you.
Hi, Kareem :) Thanks for watching. I don't know what will come for Jan 2021, no one except the person(s) who set the paper knows. I would say that partnerships appear on almost every paper 2. It is advisable to know your income statements, and balance sheets as well. Other than that they cannot cram an entire syllabus into 5 questions so you're going to have to study as much as you can. Also, I don't have any paper 3s, sorry.
omg I'm soo frustrated i just spend the whole day learning the first methods and now its soo impossible for me to get this one the unpresented cheques thing issss soo contradicting rn because I just cant see why we are adding it smh
Hi, did you watch the video and listen to the explanation?
All we are really doing is the opposite of the method used in the other video.
Think of if this way. We are trying to make the info in both statements the same.
Updating the cash book takes info from the bank statement and puts it in the cash book.
Then in the bank rec method where you start with the bank statement we take info from the cash book and put it in the bank statement.
I prefer that method as I find it’s the more intuitive of the two.
However, the question can ask for a bank rec using one method specifically so it’s good to know how to do both.
@@adapttuition yes sir I watched the Video I'm genuinely a slow learner so maybe because I learned the first way the entire day it will take a while for me to learn this one but thanks for the video and response
If you’re having trouble doing a bank rec starting with the cash book balance remember the overarching logic: we are trying to make the info between both the cash book and the bank rec symmetrical.
So normally we update the cash book with info from the bank rec that the cash book doesn’t have. And then if we start the bank rec with the bank statement balance we “update it” with info from the cash book that the bank statement didn’t have.
Think of it this way: let’s say the cash book had items {a, b, c} and let’s say the bank statement had items {d, e, f}
When we update the cash book we would put the items from the bank statement in the updated cash book.
So that means we would take the info from the bank statement {d, e, f} and put it with the info from the cash book {a, b, c}
After which the cash book would look like this {a, b, c, d, e, f}.
Now if we do the bank rec starting with bank statement balance we essentially “update” the bank statement by “putting info in it” from the cash book that it didn’t have.
So we would take the {a, b, c} from the cash book and combine it with the {d, e, f } from the bank statement.
After which the bank statement’s info would match the updated cash book’s info {a, b, c, d, e, f}.
Now...
If we are doing the alternative method where we start the bank rec with the updated cash book balance then...
The UCB would have the following info:
{a, b, c, d, e, f}
The bank statement would have the following info:
{d, e, f}
Now to make both items have the same info we either:
• include the {a, b, c} in the bank st, or
• remove the {a, b, c} from the UCB
The latter of the two options above is what we have to use if we start the bank Rec with the UCB balance.
Think about it this was too:
The unpresented cheques represent payments that came out of the cash book BUT the have not yet come out of the bank statement.
We can either:
• deduct them from the bank statement balance in the bank rec (if we started with the bank st balance), which is like including the {a, b, c} together with the {d, e, f} or,
• add the unpresented cheques back to the UCB balance to make it match with the bank st balance (which is like removing the {a, b, c} from the UCB balance which has {a, b, c, d, e, f} which will leave {d, e, f} and make the info between both items the same
Also, we would need to deduct the bank lodgments from the UCB balance because those are increases that are in the cash book but not in the bank statement.
So to make the info between both items the same we would do either of the following:
• add the bank lodgments to the bank st balance to have those increases match the increases in the UCB, or
• deduct the bank lodgments from the UCB balance so that the lodgments are missing from BOTH the UCB and the bank st.
Now seeing this response. Don’t worry you will get it.
It takes time.
Remember I said this topic gave me a lot of trouble when I was in form 4, 5 and 6.
I didn’t even understand it until I got to UWI and the textbook explained it very simply.
So keep trying! You will get it.
I believe in you 😊
And keep asking questions!
That’s how you get answers 😊
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👍🏾😊
Well done ❗❗❗🤍 perfectly taught
Thanks 😊
Glad you enjoyed the video
Best of luck today 💪🏽🧠