Question & Answer: Prepare a bank reconciliation statement with overdraft The following information comes from the records of Betty's Boutique From th…..

Prepare a bank reconciliation statement with overdraft

Prepare a bank reconciliation statement with overdraft The following information comes from the records of Bettys Boutique From the cash receipts records: Date 2016 From the cosh payments Date 2016 Cash (DR) amount Cheque no. Nov. 1 1 828 2024 6480 5 292 3 884 Nov. 1 721 722 723 724 726 10 727 11 728 20 729 21 730 22 731 28 566 832 54 10 11 492 1418 2492 152 10000 14 21 30 From the general ledger Cash at bank Account no. 111 Item Post ref Debit Credit Oct. 31 4930 DR

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Prepare a bank reconciliation statement with overdraft The following information comes from the records of Betty’s Boutique From the cash receipts records: Date 2016 From the cosh payments Date 2016 Cash (DR) amount Cheque no. Nov. 1 1 828 2024 6480 5 292 3 884 Nov. 1 721 722 723 724 726 10 727 11 728 20 729 21 730 22 731 28 566 832 54 10 11 492 1418 2492 152 10000 14 21 30 From the general ledger Cash at bank Account no. 111 Item Post ref Debit Credit Oct. 31 4930 DR

Expert Answer

 

A Bank reconciliation statement is prepared to match the balance as per Bank Statement and the balance as per Cash book (Company’s books of accounts) by adjusting the items of difference.

To begin with, the company’s cash book is completed for the month of November to arrive at the balance as of 30th Nov and then the reconciliation statement is made.

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