Preparation of Bank Reconciliation when there is Bank Overdraft
Financial Accounting SSS1 Third Term
WEEK 2
Preparation of Bank Reconciliation when there is Bank Overdraft
Performance Objectives
- How to prepare Bank Reconciliation when there is an Overdraft
Content
A Bank Reconciliation statement is prepared by the accountant when the cash book bank statement doesn’t match with the Pass Book. This is done with the intention of knowing the cause of the difference. Usually, all firms open current Bank Account as there are so many transactions to record in the bank column of the cash book. Bank also maintain separate ledger accounts of each firm customer and supplier a copy of the account to the firm for information. Now considering that all the transactions with the bank are entered in both the Cash Book and Pass Book, the balances of the two books must therefore tally with each other. Unfortunately, the two balances hardly tally. In the light of this, therefore, a Bank Reconciliation.... View More
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- Preparation of Bank Reconciliation Account
- Preparation of Bank Reconciliation when there is Bank Overdraft
- End of Year Adjustments in Profit and Loss Account
- Provision for bad Debt and Provision for Discount Allowed and Received
- Bad Debts Recovered
- Depletion of Fixed Assets
- Straight Line and Reducing Balance Methods of Depreciation
- Treatment of Depreciation in Profit and Loss Accounts and Balance Sheet
- Chapters 8
- Category SSS1
- Author ClassNotes Edu
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