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When you proced to reconcile the Bank Account starting with Debit Cash Book balance, how, is the following dealt with and why? (i) Cheques issued but not with any why? (ii) Cheques deposited but not yet credtied. (iii) Bank charges charged by the bank not recorded in the Cas Book. (iv) Interest allowed by the bank not r ecorded in the Cash Book. |
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Answer» (i) Cheques issued but not yet presente for payment are added because the bank will show higher balance since the cheque have not been paid (ii) cheques deposted but not credited because the bank will show lower balance as the cheques as the cheques have not been realised by the bank (iii) Bank charges are deducted because the bank has already crediterd the debited the account and thus, Cash Book shows higher balance. (iv) Interest allowed is added because the bank has already credited the account and thus, Cash Book shows lower balance |
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