homework help

How to Do Reconciliation of Financial Transactions in a Systematic Manner?

by Jan 21, 2018Homework Answers

The financial workforce today is equipped with new and reliable techniques. Reconciliation of financial transactions is a process that gives a summary of monthly transaction records to that of bank records.
It has many applications in the financial services. Matching of cash book and pass book holds an importance on a firm’s ability to examine their recordings of transactions and ensure true and fair means of procedure utilization.
If we note the importance of Reconciliation of financial transactions homework answers in recent financing aspects, we can find most students to realize its worth. More and more students and practitioners of firms are looking for a deeper comprehension of reconciliation of financial transactions and its practices.
Reconciliation of Financial Transactions Homework Answers- In Practice
As a microbiologist studies a colony of bacteria and virus under the microscope, similarly reconciliation of financial transaction is a process that minutely examines your accounts. It also includes cash flow, and balances. It is basically an accounting discipline that focuses on identifying problems and discrepancies of balances or collection in both cash book and pass book.
A hectic day to day financial working augments accounting errors or human errors and frauds wherein Reconciliation of Financial Transaction as a prognosis provide a respite to handle all sorts of accounting issues.
Moreover, reconciliation of financial transaction is similar to the editing of magazines, even in the most meticulous editing of magazines; a common perfect word appears to misspell infrequently. Then to error erupts from the watchful eyes of editors and assistants, proofreaders, and others.
Almost all readers in practical of that magazine spot that mistake. Apparently, reconciliation of financial transactions precisely overcomes and tallies the cash book amount to that of pass book.
Inaccurate balance in both in both pass book and check book can incur problems in the smooth working of a firm; one needs to keep a watch on financial transactions. Reconciliation of financial transactions homework answers will exacerbate calculations errors.
A person working in a firm or bank is not the one suffering from counting reliability disparity, but students of accounts face that too. Matching balances are quite a cumbersome, time consuming and monotonous work on part of students.
To distil, precise account summary of a whole year of a firm becomes possible through reconciliation of financial transactions homework answers for students.
Reconciliation of Financial Transactions Homework Answers- The savior of Account

  1. It is worth for students to understand and compare balances and transactions efficiently to avoid over limits of cash collection.
  2. It checks into all kinds of fraud activities, transaction errors, and any duplicity. Establish agreement of one’s checkbook to that of bank records thereby, manage monthly money.
  • It also corrects errors made by the customer or bank and adept with the provision of a check book register to be written on by the user.

The Layout of Preparation of Reconciliation of Financial Transaction:
A reconciliation statement is maintained when an account holder gets a revised and completed duly completed pass book from the bank. On receiving the pass book, he compares the bank balance shown in the cash book with the balance shown by the pass book.
In any case of difference in the balance of both the books the items appearing in the pass book is checked and ticked with the items appearing in the cash book and vice versa. Unticked items in both the books become a point of difference. These points will be jotted down and with the help of these reasons of differences, and reconciliation statement will be prepared. The balance as per cash book is either credit or debit. Similarly, balance as per pass book may be debit or credit.
Mode of preparing reconciliation statement by a debit balance of bank column of cash book:
Entries in the account in which the debit balance of the cash book is lesser in comparison to the credit balance of the pass book will be added while preparing a reconciliation statement and vice versa.
Addition of items-

  • Cheques issued but not given to the bank for payment
  • Credit allowed by the bank for interest
  • Amount directly deposited into the bank by the customer
  • Cheques presented to the bank but not recorded in the cash book

Items to be deducted-

  1. Cheques deposited into the bank but not yet credited
  2. Cheques dishonored by the bank
  3. Direct payment made by the bank on behalf of the customer
  4. Amount reduced by the bank for commission, bank interest
  5. Cheques issued but not recorded in the cash book

Hassle free Reconciliation of Financial Transactions for students:

  1. Firstly, students must get familiarized with checking account statements of any firm, then, capable in tallying it with the bank records.
  2. Secondly, students must be aware of calculating interests or any other monthly fees and adept at checking items listed on the transaction statements the bank records.
  • Thirdly, check for any missing item in both the transaction statement and bank records.
  1. Next, students must know how to enlist unreconciled deposits found if any in the account. All these processes involve patience, time and precision to check into details of both cash book and pass book on paper. Reconciliation of financial transactions homework answers plays an important role here as it assists students in the following details.
  2. It comprises a track on recent balance, ending balance, etc. An addition of missing credits or deposits to the balances. Also, a careful mathematical operation to figure out all the balances unused, used and subtracted from the balance statements.