Step for preparing a bank reconciliation statement

Question

Write down the step for preparing a bank reconciliation statement?

Answer 1

- Bank Reconciliation Statement is made either by starting with the book Cash book balance or Bank pass book balance.

- When the balance of the Cash book is taken as a starting point then Cash book balance is to be altered in accord with the entries passed in the Bank pass book and vice versa.

- Cheques issued however not presented for payment.

- Amount credited in Passbook however not in Cash book.

- Deposits made in the bank straightly.

- Incorrect credits given by bank.

- Interest credited in Passbook.