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Bank Reconciliation Statement Notes

Institution: Kenyatta University

Course: Bachelor of Commerce

Content Category: Lecture Notes

Posted By: Kipkiruikagawa

Document Type: PDF

Number of Pages: 15

Price: KES 200
 
    

Views: 601     Downloads: 1

Summary

OBJECTIVES
After studying this lesson, you will be able to:
• state the meaning and need of Bank Reconciliation Statement;
• explain the reasons for difference between the balances of Cash Book and Pass Book;
• prepare the Bank Reconciliation Statement.

Business concern maintains the cash book for recording cash and bank transactions. The Cash book serves the purpose of both the cash account and the bank account. It shows the balance of both at the end of a period. Bank also maintains an account for each customer in its book. All deposits by the customer are recorded on the credit side of his/her account and all withdrawals are recorded on the debit side of his/her account. A copy of this account is regularly sent to the customer by the bank. This is called ‘Pass Book’ or Bank statement. It is usual to tally the firm’s bank transactions as recorded by the bank with the cash book. But sometimes the bank balances as shown by the cash book and that shown by the pass book/bank statement do not match

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