avoid-preparing a bank reconciliation statement
Briefly explain the things to avoid while preparing a bank reconciliation statement?
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- Cheques deposited however not cleared;
- Bank or Interest Charges debited through bank
- Direct payments made through bank not entered in Cash book
- Cheques dishonored not recorded in cash book
- Incorrect debits given through bank
- When it is prepared with the Bank balance as per the bank passbook, then the above process will be upturned that is, the items will be added to the pass book which was subtracted from the cash book balance and those items will be subtracted from the bank pass book balance that was added to the cash book balance.
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