Hi :) Thanks! It is easy if you understand it :) The challenge is getting to the point where you understand it and make it look easy :D But it is a very worthy challenge!
Hi Ashley 😊 Super happy to hear that! I also hates this topic and had no clue how to do it when I was in form 4, 5, & 6 I only understood it after when I went to UWI. So I reply felt obliged to share what I learned and help others. Keep up the good work and if you have any questions please feel free to let me know. 😊
Hi, Mya! Thanks very much for your awesome comment 😊 I really appreciate it. Glad to know you enjoyed and learned from the video. Keep up the good work 💪🏽🧠
Sir for some reason in the final question, our figures don't match up. I'm not not saying you're wrong but I used my calculator and it gave me a different outcome which really confused me. Can you help?
@@sharminecampbellbrown3679 Hi! Yeh, those are included in both this video and the previous one. You can use the time stamps in the description to see where I talk about them.
The closing debit balance will be brought down or brought forward on the debit side. But prior to being brought down it must first be carried down from the opposite side
Hey David :) The question indicates that the bank credited our bank account with the interest. So this implies that the bank statement already has the interest but the cash book does not. So that's why it's included in the updated cash book. Hope that helps :)
Hello sir,is if the Bussiness deposited 5600000 shs in bank and in the cashbook they recorded 6500000 how do you correct such errors in adjusted cashbook
After adjusting/updating the cash book and a bank overdraft is given, which one is used to start off the Bank Rec.? The adjusted cash book balance or the overdraft?
Either one can be used. The first two videos show how to do the bank rec starting with the bank statement balance and the third video in this series shows how to do the bank rec starting with the updated cash book balance.
You’re very welcome! Happy to hear you’re enjoying the videos. There’s no one right way to do a bank rec. So I teach it both ways to give students flexibility 😊
Hi, that means you'd have to balance off the cash book. To do this, follow these steps: - add up the amounts in the debit column - add up the amount in the credit column - find the difference between these two - put that difference on the side with the lower total - label it "Balance c/d" Hope that helps
Hi sir, a new subscriber here, love how you teach, but if you could do me a favor, in future videos just zoom up a little more because I take down the questions and am forced to squint to see the words sometimes and since your video is almost an hour long and the bright white light on the screen doesn't help, I get eye problems, other than that keep up the good work💙
HI! Thanks for watching :) Sorry to hear that the words are too small. I'm trying to maintain a balance between keeping as much info on the screen as possible while making it legible, that way I don't have to keep switching back and forth between different batches of information which in itself can also be a bit annoying. I'll tweak it a bit and see what I can do. Let me know if you find it gets any better. :)
Hi, the cash book is used to record all cash and bank transactions. So, yes, these transactions would be recorded in the cash book. I have some past paper solution videos dealing with Cash Books on this channel. Maybe you can check them out and see if they can help? 😊
That's an interesting one. I would say that if you're doing the bank rec statement starting with the bank statement balance then add back the amount of the debit error, but if starting with the updated cash book balance then subtract it. Now since the bank is going to reverse it the next day then the bank rec would be redone and that item would be omitted.
A good day to you. Another video I watched says to correct the errors where they happen. Eg. Errors made in the cash to be corrected in the adjusted cash book, and errors made by the bank to be corrected in the bank reconciliation statement....what is your take on this?
do you know how to do the bank reconciliation where bank error is debit balance is over or understated? do we treat it the same as a credit balance error in the bank statement
hell0 sir i was wondering that if the bank credited ur a/c in error then they meant to debit our account so in the bank rec we should less double the amount they credited by accident (am i wrong and please explain why)
Hi Kunal 😊 If the bank credited our account in error we should not include that in our update of the cash book. Second when doing the bank rec, if you start with the bank statement balance you only need to “remove the error” once (at least in this case). You wouldn’t need to double any figure. If you start with the cash book balance you’d actually add the amount of the incorrect credit in the bank rec. Hope that helps.
@@adapttuition ok thx sir I just assumed that if they didn't mean to credit they meant to debit or vice versa as that's the only other thing that they could of meant to do(thus crediting or debiting the balance once to cancel the erroneous entry and then debit or credit once more to insert the correct entry), if u catch my drift. i guess there are other possibilities such as the entries of the wrong customer account and etc.
Hi Aaron 😊 Is it the same transaction? If it’s debited in one place (CB or BS) it has to be credited in the other. Is it a past paper question you’re doing? If so, which year and is it May or Jan?
Hi Aaron, it sounds like it’s a bank statement error. In which case you would adjust for this in the bank rec. Whether you add or subtract would depend on how you prepare the bank rec… what your starting figure is:- updated cash book balance or bank statement balance.
Hi, the balance is c/d from the credit side and b/d on the debit side and the b/d balance is what we consider the balance in the account. So since the balance is b/d on the debit side (as can be seen from 27:02 to 29:35) it is not an overdraft and as such does is not a negative balance and does not require a negative sign or brackets. Hope this helps.
Sir i have a question, we jjs started this topic with my teacher and she wasn't making the updated cash book and the bank statement balance, is there a rule to that or?
@@adapttuition @adapttuition ah I c. I calculations were off. I calculated the b/d as a negative figure so I did -31100+11000+3000+2200=-14900... So the figures in cashbook and bank rec was different
Sir i have a queston listed below 47. Sally’s balance in her cashbook is $160 debit. However her bank statement shows a different amount. On investigation, Sally discovered the following: (1) A cheque that Sally paid into the bank for $40 is still outstanding (2) A cheque for $60 paid by Sally to Molly has not yet been presented (3) Sally has forgotten to record a cash withdrawal of $30 (4) When Sally inspects her bank statement she sees that the bank has deducted charges of $15 from her account
What is the balance on Sally’s bank statement? A $95 B $135 C $185 D D $225
The answer is B however i am not getting that answer
Hi Kavita :) Maybe you should take a look at video 3 in this playlist as it shows how to prepare a bank rec starting with the updated cash book balance. But i'll explain the answer to your question here. So, we would start with the balance as per cash book and do the following: Firstly, we would need to update the cash book balance for items 3 & 4 like this: - $160 - $30 - $15 = $115 Then we would do the bank rec starting with this updated cash book balance like this: $115 -$40 + $60 = $135 And this is option B. Hope that helps. Again, watch video 3 in the bank recs playlist. It explains how to do bank recs starting with the updated cash book balance.
Hi, you can reach out to me on Instagram @adapttuition Just a disclaimer, I am very busy these days as we are very close to exams, so any extra work like this usually does not take priority I make the videos so that people can help themselves
Thanks so much for the video.
Happy to hear you found it helpful 👍🏽
U make accounting look easy
Hi :) Thanks! It is easy if you understand it :)
The challenge is getting to the point where you understand it and make it look easy :D
But it is a very worthy challenge!
used to hate this topic but now its manageable just like control accounts. TYSM SIR!
Hi Ashley 😊
Super happy to hear that!
I also hates this topic and had no clue how to do it when I was in form 4, 5, & 6
I only understood it after when I went to UWI.
So I reply felt obliged to share what I learned and help others.
Keep up the good work and if you have any questions please feel free to let me know. 😊
I love how the names are always a pun to something else Jinn Jabear- Ginger beer🤣🤣
😄 gotta keep it interesting, right?!
And you can tell what time of year I created the handout 😂
Its concerning that he teaches P.O.A so well, im convinved even my 5 y.o brother can understand
😄 That's an awesome comment! Thanks very much for watching ❤️
Keep up the good work 💪🏾🧠
Your videos help me so much. Thank you!!
You are so welcome! Happy to be of assistance :)
Keep up the good work on your side!
You can do it; I believe in you :)
Sir your videos are so helpful 👏
Hi, Mya!
Thanks very much for your awesome comment 😊
I really appreciate it.
Glad to know you enjoyed and learned from the video.
Keep up the good work 💪🏽🧠
Sir for some reason in the final question, our figures don't match up. I'm not not saying you're wrong but I used my calculator and it gave me a different outcome which really confused me. Can you help?
Hi, message me on Instagram @adapttuition and send me a pic of your working and I’ll take a look
thank you so much for your videos. They're very helpful.
Happy to hear you’re finding the videos helpful 😊
Keep up the good work!
I believe in you 💪🏽🧠
This was soooo helpful.. thanks so much
You’re very welcome Stephanie 😊
Amazing, thank you
You’re very welcome 😊
Glad you found it helpful!
What level are you studying accounts at?
Thank you sooo much for your videos
Glad you like them! :)
Keep up the good work 💪🏾🧠
Thanks for this video
Most welcome :)
Thank you very much for this video. I hope we will have on with bank overdraft soon.
@@sharminecampbellbrown3679 Hi! Yeh, those are included in both this video and the previous one. You can use the time stamps in the description to see where I talk about them.
THANKS SO MUCH FOR THIS VID!
@@gloryjesus4ever357 My pleasure :)
sir, a closing debit balance wouldnt be brought forward on the credit side? whereas the opening debit balance would be a regular balance? 29:58
The closing debit balance will be brought down or brought forward on the debit side. But prior to being brought down it must first be carried down from the opposite side
Sir, for the interest credited to bank account for bank, shouldnt that go in the bank rec. statement? 31:50
Hey David :)
The question indicates that the bank credited our bank account with the interest.
So this implies that the bank statement already has the interest but the cash book does not.
So that's why it's included in the updated cash book.
Hope that helps :)
Hello sir,is if the Bussiness deposited 5600000 shs in bank and in the cashbook they recorded 6500000 how do you correct such errors in adjusted cashbook
Hey 😊
So the debit in the cash book was for 6.5MM and the correct figure was 5.6MM
So I would credit the cash book for 900,000
After adjusting/updating the cash book and a bank overdraft is given, which one is used to start off the Bank Rec.? The adjusted cash book balance or the overdraft?
Either one can be used. The first two videos show how to do the bank rec starting with the bank statement balance and the third video in this series shows how to do the bank rec starting with the updated cash book balance.
@@adapttuition Thanks, my teacher only taught me with the adjusted cash book balance. Thanks for the quick reply, really enjoying your videos!
You’re very welcome! Happy to hear you’re enjoying the videos. There’s no one right way to do a bank rec. So I teach it both ways to give students flexibility 😊
i have a question. what if they didnt tell us the closing balance for the cash book? how do we go about working that..?
Hi, that means you'd have to balance off the cash book. To do this, follow these steps:
- add up the amounts in the debit column
- add up the amount in the credit column
- find the difference between these two
- put that difference on the side with the lower total
- label it "Balance c/d"
Hope that helps
@@adapttuition thank you so much! If it wasn't for you I would still be lost on this topic! God bless you! Lots of love! ♥️♥️♥️♥️♥️♥️♥️
@@gloryjesus4ever357 It's my pleasure to help :) God bless you too!
Hi sir, a new subscriber here, love how you teach, but if you could do me a favor, in future videos just zoom up a little more because I take down the questions and am forced to squint to see the words sometimes and since your video is almost an hour long and the bright white light on the screen doesn't help, I get eye problems, other than that keep up the good work💙
HI! Thanks for watching :) Sorry to hear that the words are too small. I'm trying to maintain a balance between keeping as much info on the screen as possible while making it legible, that way I don't have to keep switching back and forth between different batches of information which in itself can also be a bit annoying. I'll tweak it a bit and see what I can do. Let me know if you find it gets any better. :)
Good morning sir. What if you have transactions stated that Cash sale, bought stationery for cash and sales. Should I put these in the Cash book?
Hi, the cash book is used to record all cash and bank transactions. So, yes, these transactions would be recorded in the cash book.
I have some past paper solution videos dealing with Cash Books on this channel.
Maybe you can check them out and see if they can help? 😊
@@adapttuition okay, thanks. I have been watching your videos and they are helpful but I am here trying to work out an advance bank recon.
Never heard of an advance bank rec. 🤔 Hope you get through with it.
Sir, is this topic in the syllabus?
Oh, most certainly yes :)
@@adapttuition okay tq
How can one treat a debit error by the bank but which the bank discovers and would reverse in the next working day?
That's an interesting one. I would say that if you're doing the bank rec statement starting with the bank statement balance then add back the amount of the debit error, but if starting with the updated cash book balance then subtract it.
Now since the bank is going to reverse it the next day then the bank rec would be redone and that item would be omitted.
A good day to you. Another video I watched says to correct the errors where they happen. Eg. Errors made in the cash to be corrected in the adjusted cash book, and errors made by the bank to be corrected in the bank reconciliation statement....what is your take on this?
Hey, yes, I agree with that statement
do you know how to do the bank reconciliation where bank error is debit balance is over or understated? do we treat it the same as a credit balance error in the bank statement
Hi, I'm not entirely sure what you're asking. However, I am pretty sure I address errors with opening balances in this video.
hell0 sir i was wondering that if the bank credited ur a/c in error then they meant to debit our account so in the bank rec we should less double the amount they credited by accident (am i wrong and please explain why)
Hi Kunal 😊
If the bank credited our account in error we should not include that in our update of the cash book.
Second when doing the bank rec, if you start with the bank statement balance you only need to “remove the error” once (at least in this case). You wouldn’t need to double any figure.
If you start with the cash book balance you’d actually add the amount of the incorrect credit in the bank rec.
Hope that helps.
@@adapttuition ok thx sir I just assumed that if they didn't mean to credit they meant to debit or vice versa as that's the only other thing that they could of meant to do(thus crediting or debiting the balance once to cancel the erroneous entry and then debit or credit once more to insert the correct entry), if u catch my drift. i guess there are other possibilities such as the entries of the wrong customer account and etc.
It can get a bit confusing sometimes. I understand what you mean
How we treat a transaction that was debited in the cash book and debited in the bank statement sir
Hi Aaron 😊
Is it the same transaction?
If it’s debited in one place (CB or BS) it has to be credited in the other.
Is it a past paper question you’re doing?
If so, which year and is it May or Jan?
@@adapttuition yes sir
One question was saying "a cheque of £4,689,000 had been debited twice by the bank."
@@adapttuition hlo sir
Hi Aaron, it sounds like it’s a bank statement error.
In which case you would adjust for this in the bank rec.
Whether you add or subtract would depend on how you prepare the bank rec… what your starting figure is:- updated cash book balance or bank statement balance.
29.28 Sir if the bank balance is that of a credit wouldn't that be a overdraft therefore the 14k would be a negative or in brackets figure??
Hi, the balance is c/d from the credit side and b/d on the debit side and the b/d balance is what we consider the balance in the account.
So since the balance is b/d on the debit side (as can be seen from 27:02 to 29:35) it is not an overdraft and as such does is not a negative balance and does not require a negative sign or brackets.
Hope this helps.
@@adapttuition Ok thanks sir i undertsand now🤝
Happy to help 👍🏽😊
Wishing you all the best for exams and beyond
Sir i have a question, we jjs started this topic with my teacher and she wasn't making the updated cash book and the bank statement balance, is there a rule to that or?
Sir nvm i watched ur next video lol
Glad you got the answer you were looking for :-)
Hello,,, If I may ask can you cover taxation topic😊
HI :) I'd love to help but my schedule has changed and unfortunately I don't have any time to make videos right now.
Sorry about that :(
It's Alright,,,,,maybe later.
👍🏽😊
I'm lost in ur last video, isn't an overdraft a negative figure how did u get the positive figures...
Primarily in cash book...
Hi! Yes, an overdraft is a negative bank balance but we don’t put negative figures in t accounts, journals, or the cash book.
@@adapttuition @adapttuition ah I c. I calculations were off. I calculated the b/d as a negative figure so I did -31100+11000+3000+2200=-14900... So the figures in cashbook and bank rec was different
Ok cool. Glad you figured it out 😊
@@adapttuition sooo, was I wrong and should just stick with your method... Cuz I'm not sure, I was just brainstorming for I am just a student.
Thank you so much for this video sir 🙏 but who in the world is Philip??? 😭
Lol! That is a story worthy of its own UA-cam short/video
Sir i have a queston listed below
47. Sally’s balance in her cashbook is $160 debit. However her bank statement shows a different amount. On investigation, Sally discovered the following:
(1) A cheque that Sally paid into the bank for $40 is still outstanding
(2) A cheque for $60 paid by Sally to Molly has not yet been presented
(3) Sally has forgotten to record a cash withdrawal of $30
(4) When Sally inspects her bank statement she sees that the bank has deducted charges of $15 from her account
What is the balance on Sally’s bank statement?
A $95
B $135
C $185
D D $225
The answer is B however i am not getting that answer
Hi Kavita :)
Maybe you should take a look at video 3 in this playlist as it shows how to prepare a bank rec starting with the updated cash book balance.
But i'll explain the answer to your question here.
So, we would start with the balance as per cash book and do the following:
Firstly, we would need to update the cash book balance for items 3 & 4 like this: - $160 - $30 - $15 = $115
Then we would do the bank rec starting with this updated cash book balance like this: $115 -$40 + $60 = $135
And this is option B.
Hope that helps.
Again, watch video 3 in the bank recs playlist.
It explains how to do bank recs starting with the updated cash book balance.
@@adapttuition thank you so much sir it really did help 😊
Happy to help 👍🏽😊
Sir please i need your help with a question.How can I contact you
Hi, you can reach out to me on Instagram @adapttuition
Just a disclaimer, I am very busy these days as we are very close to exams, so any extra work like this usually does not take priority
I make the videos so that people can help themselves