Bank Reconciliation Statement
Bank Reconciliation statement, if we say in simple word this is the one way to know that how much balance is in our Company Account have in a particular branch or Account. In this Statement we take only those cheque which is not cleared in Bank.It Can be current month cheque last amount. we reconcilile every month bank account of the company has.
How long we carry any cheque in reconciliation:- sometime it happen that we issue any cheque to the party and didn't deposit this cheque due to some reason so in this case we will carry the cheque for three month if the cheque clear within three month then it's ok if in case the cheque not present in bank so we will reverse this cheque in the book and the reverse entry will do in tally.
Here is the format of Bank Reconciliation statement
Formula: (Balance as per Book + Cheque issued but yet not Present - Cheque Deposit But yet not Cleared) = Balance as per Bank
Balance as per Book : It mean that how much balance we have in the bank after the payment and receipts of the company.
Add: Cheque issued But yet not present in Bank
It's mean that we issued the cheque to the supplier but they did not deposit it into the bank.In the reconciliation we take those cheque which is not cleared in the bank during the month. (Except those Cheque which is cleared in the Bank Account)
Less: Cheque deposit But yet not cleared
It mean that we receive cheque and deposit it but it is not cleared in the Bank. (Except those Cheque which is cleard)
Reverse Cheque--- Reverse Cheque means it will come in Debit side in the Book. Because when we issue the cheque we enter it credit side.
Here we can use the Golden Rule
Suppose We issue cheque in june 2017 and due to some reason the cheque not present in bank in the month of june.
So we will take it in the reconciliation of june.
Bank Reconciliation statement, if we say in simple word this is the one way to know that how much balance is in our Company Account have in a particular branch or Account. In this Statement we take only those cheque which is not cleared in Bank.It Can be current month cheque last amount. we reconcilile every month bank account of the company has.
How long we carry any cheque in reconciliation:- sometime it happen that we issue any cheque to the party and didn't deposit this cheque due to some reason so in this case we will carry the cheque for three month if the cheque clear within three month then it's ok if in case the cheque not present in bank so we will reverse this cheque in the book and the reverse entry will do in tally.
Here is the format of Bank Reconciliation statement
Balance as per Book : It mean that how much balance we have in the bank after the payment and receipts of the company.
Add: Cheque issued But yet not present in Bank
It's mean that we issued the cheque to the supplier but they did not deposit it into the bank.In the reconciliation we take those cheque which is not cleared in the bank during the month. (Except those Cheque which is cleared in the Bank Account)
Less: Cheque deposit But yet not cleared
It mean that we receive cheque and deposit it but it is not cleared in the Bank. (Except those Cheque which is cleard)
Ø There is a factor which effect the reconciliation statement is reverse cheque.
Here we can use the Golden Rule
· DEBIT THE RECEIVER
· CREDIT THE GIVER
So we will take it in the reconciliation of june.
Ø If it is cleared in July then we will remove it from the reconciliation.
Ø If it will not cleared within 3 month then we will reverse the cheque
We can carry forward any cheque till three months Because the Validity of any cheque is only three month after that it will not valid. Then we can make the cheque reverse.
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