Reconciliation

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  • Created by: priya
  • Created on: 30-06-19 13:56
What is the purpose of Reconciliation?
Its about checking for errors in the accounting records and on the bank statement
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How often should reconciliation be produced?
Licensed conveyancers must produce reconciliations once a month.
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How do you prepare a reconciliation statement?
You compare the balance on the client bank statements to the balance in the client cash accounts. This must be done for all SDA and Client Accounts.
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What do you do when there are differences?
Prepare a reconcialiation statement highlighting the difference. The cause must be investigated and once known, it should be stated in the statement. Any discrepancy must be rectified without delay- rule 9.1.6.
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How should you prepare listings?
This reconciliation is testing whether there is enough money held in the client account to cover the total amount owed go clients. LC should correct any differences- breach of 9.1.5
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When should the next reconciliation statement be prepared?
Not more than 5 weeks after the date to which it was last prepared
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When should the reconcialtion statement be completed?
Within 7 days of the date to which it was prepared.
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What does it mean when the Licensed conveyancer needs unrestricted and immediate access to accounting records?
Must be at all times and originals must not be taken off site.
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What do you do if the Licensed conveyancer owns more than one business?
The accounting records must be kept separate from those of the other business.If the accounts are painted using the same system, it must be able to reproduce the records for each business separately.
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Other cards in this set

Card 2

Front

How often should reconciliation be produced?

Back

Licensed conveyancers must produce reconciliations once a month.

Card 3

Front

How do you prepare a reconciliation statement?

Back

Preview of the front of card 3

Card 4

Front

What do you do when there are differences?

Back

Preview of the front of card 4

Card 5

Front

How should you prepare listings?

Back

Preview of the front of card 5
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