A bank reconciliation statement reconciles an entity's bank account with its financial records by summarising banking and commercial activity. Payments have been processed, and cash collections have been put into a bank account, according to bank reconciliation statements.
A bank reconciliation compares your records to those of your bank to check if there are any discrepancies in your cash transactions between the two sets of records. Overdraft penalties, bounced checks, and an overdraft account could be the outcome.
The bank fees would be deducted from Bank Service Charges and credited to Cash in the journal entries. Accounts Receivable will be debited and Cash will be credited in the journal entry for a customer's cheque that was returned due to insufficient funds.
The book balance should be increased or decreased as a result of recording errors. Add the amount of the error if the item cleared the bank for less than the amount in the books. Subtract the amount of the error if the item cleared the bank for more than the amount in the books.
A bank reconciliation is the process of reconciling your bank account with your tax returns. It’s important to make sure that you are not paying too much in taxes or too much interest on a loan. The process will ensure that any difference between the two is reconciled and adjusted accordingly to give you a more accurate financial picture.
Learner's Ratings
4.3
Overall Rating
74%
9%
2%
2%
13%
Reviews
R
Roop Kishor
5
very helfull for specilly who are starting new in accounting
A
Abu Samra
5
excellent sir
I am very confident in accounting concepts and very clear concepts and termonology of business accounting
V
Vinay Chaturvedi
5
Good Course
R
Rakesh Gajul
5
I think liitle more added accounting topics basic to advance
Share a personalized message with your friends.