ACC-1A Lecture Notes - Lecture 25: Bank Reconciliation, Petty Cash, Bank Statement
Document Summary
Information and communication refers to the need for the open flow of relevant information throughout an organisation. Information must be captured and communicated in a form and a timeframe that enables employees to complete their responsibilities. Monitoring: monitoring refers to the assessment of the quality of an organisation"s internal control, monitoring can be accomplished in two ways, through ongoing activities, through a separate evaluation. Confirms the accuracy of both the bank"s and the company"s cash records. It determines the actual cash balance to be reported on the company"s statement of financial position: a bank reconciliation is prepared as follows: Reconcile the bank balance to the actual cash balance. Reconcile the company"s book balance to the actual cash balance. Adjust the company"s book balance to the actual cash balance. A deposit in transit is a deposit that has been made by the company but has not cleared the band as of the statement date.
