Bank Reconciliations

1. Balance the Cash Book

2. Compare the bank columns in the cash book with the bank statement.  Tick the transactions that match.

3. Any outstanding items in the bank statement- enter into your Cash Book and rebalance your Cash Book.

4. Correct any other errors and rebalance the Cash Book 

5. Prepare the Reconciliation Statement

Heading: Bank Reconciliation Statement for ____ as at ___[Date]

£

Balance as per Cash Book                                                                                                  xxxx

ADD

Unpresented Cheques                                                                                                       xxxx _________

LESS                                                                                                                               xxxx

Lodgements yet to be received                                                                                            xxxx

_________

Balance as per the bank statement [Date]                                                                            xxxx

1. Enables errors in the Cash Book to be identified and corrected

2. Enables errors in the Bank Statement to be identified and investigated.

3. Enables missing items in the Cash Book to be identified and accounted for.

4. Acts as deterrent to fraud - Bank Statement is independant accounting record, prepared by bank, and providing means to verify entries in Cash Book

5. Enables out of date cheques (over 6 months) to be identified and cancelled in the Cash Book