A bank reconciliation statement is a very useful tool to look after your bank balance. It is nothing but comparing the bank statements with your transaction activities. It can be done manually by you, or can also be done by a professional. It helps you in providing information about your debits and credits in your account. By this, you will be able to point out if any kind of fraudulent activities have occurred in your bank account. The steps for preparation of bank reconciliation statements homework answers are as follows.
You have to observe your bank cash balance very carefully, as soon as you receive a copy of the bank statement. It is easy when you have online access to your bank account. If not, you can approach the clerk to provide you a print out of the bank statement. Cross check each and every transactions that has took place in the copy of your bank statement with your personal record, for that is the ultimate aim of yours. Compare every single transaction with the personal or business record that you have, with the statement provided by the bank.
You will be able to identify any fraudulent activities, after the first step even. As soon as you spot them, you can use a simple formula to match both the records until they are even. The formula is:
(Cash account balance per your records)+/- (reconciling items) = bank statement
When this formula is satisfied the whole process is considered to be completed.
You may increase your cash balance, for any kind of deposits which are not posted in the statement.Â Sometimes, the time at which you credit the money to your account and the time at which the bank actually reflects the credited account might slightly vary. The delay of the bank can also mean that there is a reconciling item.
During Steps for Preparation of Bank Reconciliation Statements Homework Answers, you may also reduce the cash balance in your account for the cheques that was not cleared by the bank.
You should consider this very seriously. You should check for any kind of mistakes that were made during the processing time by the bankers.
This might get real serious and you will have to devote a great deal of time, to rectify these kind of mistakes. It is better to not get into tight situations like this. If you spot some deviation in these criteria, immediately report it to your banking professional so that they will remedy this as soon as possible. The more you delay, the more time it takes to resolve the issue completely. You might have to go through several formalities which is quite a head ache in todayâ€™s busy world.
Now that you are half done with the Steps for Preparation of Bank Reconciliation Statements Homework Answers, the next process will be to check if all the cheques that you have passed are clearly listed out in the copy of the statement. At times, certain transactions might not be included due to some minor fault while processing your cheque. All the cheques that have been successfully passed and the cheques that bounced back should be clearly mentioned in the copy.
Next important criteria are to check that all the amount that you have deposited so far, is also posted in the print out of the bank statement. You might deposit money in a smaller amount or in larger currencies; every single penny of your deposit should appear on the printed out bank statement. Check out that you have a hold on it.
You have to observe this factor very closely, that is, you have to minus all the service charges and debits that are automated, while reconciling. Make a separate not of it, to get a clear picture of it to avoid any kind of confusion while obtaining the output finally. These automated transactions appear on the statement most often, but what if they do not at times. Things like this might happen, so keep a track on the service charge type of occurrences and minus them with the amount. Mostly during the month-end, this service charge amount might not appear on the copy. This is why you should know for what you have been charged for. You can be charged for exceeding withdrawal limits too. Have all this in mind while reconciling.
Final step in steps for preparation of bank reconciliation statements homework answers is to check for any kind of errors that you might have made unknowingly. Mistakes are made most often in this step, and you may have entered the wrong amount of bill by fault, which you would come to know while comparing it with the bank statement. You will also get to know the mistake you made. If you calculate the sum with the wrong amount, you are prone to obtain a reconciling item. So check with your personal account book keenly and identify the errors that you have made while book keeping. T
These are the eight simple steps involved in the steps for preparation of bank reconciliation statements homework answers. It is quite easy and simpler and can be done on your own, without any professional help or assistance. For more help, you can approach tutors, in order to gain an in-depth understanding.