Loading the lesson
Loading the lesson
Search AllRounder.ai
Search the courses, subjects, tracks, games and features, or jump straight to a page.
Search the courses, subjects, tracks, games and features, or jump straight to a page.
3 cards from this section. Quick, good the night before a test.
What is a Bank Reconciliation Statement?
Think about the purpose of a BRS.
List one reason why regular bank reconciliations are important.
What do you think happens if discrepancies went unnoticed?
What does a Bank Reconciliation Statement help to achieve?
Think about why businesses need to compare cash records.
Regular bank reconciliation is unnecessary if you trust your bank.
What if a bank makes an error?
A company discovers that its cash book shows a balance of $5,000, while the bank statement shows $5,750. After investigation, it identifies $800 in deposits in transit and $200 in outstanding checks. What is the adjusted balance that should be reflected in both records?
Make sure you adjust the cash book first according to the identified transactions.
A small business has not reconciled its bank account for three months. If it finds that several bank fees totaling $150 and an error of $100 in the cash book went unnoticed, how should the owner adjust the cash book balance to ensure accuracy?
Remember, adjustments need to reflect unrecorded charges that affect the bottom line.
5 more questions in this section. Enroll free to practise them all.
Enroll free