ACCT 001 Lecture Notes - Lecture 12: Internal Control, Cdj, Bank Statement
17 Sep 2020
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Bank statements v cash accounts monthly balance. Statements summarise the activity in a bank account and report the ending. Timing differences often cause discrepancies between bank statements and cash. Items reflected on the companies records but not yet reported on the bank records statement. Items reported on the bank statement but not yet entered the companies records. Dishonoured customer payments or non sufficient funds (nsf) cheques. Use of direct debits/credits transfers from one account to another eliminates some of the above difficulties. Strive to isolate specific items that cause a difference between the depositors. Errors must be identified then added or subtracted on the reconciliation to arrive records and the bank statement balance at the corrected cash balance. Cheque written by a firm for 94. 50 was incorrectly entered into the accounting records as 49. 50. This amount should be deducted from the ending cash balance per company records since the companies books are in error.
