Bank Reconciliation: Analyzing Discrepancies and Preparing Statements

This report focuses on the process of bank reconciliation, a crucial aspect of financial accounting. It begins by defining bank reconciliation and its importance in aligning bank statements with accounting records. The report includes a detailed analysis of a bank ledger account, presenting transactions and balances. Following this, a bank reconciliation statement is presented, outlining the adjustments needed to reconcile the bank statement balance with the ledger balance. The statement incorporates items such as outstanding deposits, unpresented checks, bank charges, and dishonored checks. The report aims to demonstrate how to identify and address discrepancies between the bank statement and the company's records, ensuring accurate financial reporting and providing a clear understanding of the reconciliation process. References to relevant sources are also provided.

RECONCILIATION
STATEMENT

TABLE OF CONTENTS
Bank Reconciliation Statement .......................................................................................................1
a) Complete Bank ledger account ...............................................................................................1
b) Bank Reconciliation Statement...............................................................................................1
REFERENCES................................................................................................................................3

Bank Reconciliation Statement
It refers to the process involving matching balances in accounting records for cash ledger
account with the bank statements. Bank reconciliation are prepared for ascertaining differences
between two or recording the changes occurring in accounting report of an entity. This process
not only refers to finding out the differences but also in bringing the changes in the accounting
records of an enterprise for keeping them updated (ODO, 2018). These are carried out at regular
intervals for for balancing the cash and bank records.
a) Complete Bank ledger account
Bank Ledger
Date Particulars Amount Date Particulars Amount
01/06/20 balance b/d 242 04/06/20 Wages 600
05/06/20 Interest on overdraft 20
03/06/20 Sales 1140 06/06/20 Purchases 380
06/06/20 S. Clayton 485 07/06/20 G. Lawson 400
08/06/20 Sales 920 10/06/20 Equipment 755
10/06/20 Sales 240 14/06/20 Bank charges 35
15/06/20 G.Pert 195 13/06/20 Purchases 600
20/06/20 R.THornton 1370 14/06/20 G. Grace 190
26/06/20 Sales 320 17/06/20 Advertising 250
30/06/20 P. Roos 490 18/06/20 Wages 610
20/06/20 Purchases 430
24/06/20 G. Coleman 300
25/06/20 Purchases 250
28/06/20 Cleaning 50
30/06/20 Purchases 400
30/06/20 B.Gotch 380
30/06/20 By balance c/d 248
5650 5650
b) Bank Reconciliation Statement
Bank Reconciliation Statement
Debit Balance as per the bank statement 753
Add
Outstanding deposits 1600
1

Cheques received but not presented 490 2090
Less
Cheques received but not recorded 635
Cheques dishonoured 195
Bank charges 55
Cheques Unrepresented
165 250
170 50
171 400
172 380
Loan payment directly by bank 600 2565
Balance as per Bank ledger account 248
2

REFERENCES
Books and Journals
ODO, J.O., 2018. NATURE OF ACCOUNTING, BANK RECONCILIATION STATEMENT
(FUNDAMENTALS OF ACCOUNTING).
3