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Why is the balance as per bank statement on the bank reconciliation statement a credit if its a favorable balance but in the bank account the credit means you owe the bank money?
Wiki User
∙ 16y ago
The Debit and Credit on a bank statement reflect the Bank's accounting records, not yours. So when you deposit money into your account, the bank owes you that money to you - it is a liability for them, therefore a credit entry. Similarly, if they charge you a bank fee, it reduces their liability to you, so they would Debit your account (on their books) and Credit an Income account.
Wiki User
∙ 16y ago
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Is the Bank Reconciliation statement a part of financial statement?
Bank reconciliation statement is not part of financial statement it is the helping statement to tally bank account with balance in banks statement.
How do you reconcile pass book to cash book?
Reconciliation process is called "bank reconciliation statement" under which both company accounts balance of cash and bank is reconciled with balance of bank account provided by bank statement. The process is that first of all one statement is treated as base statement, it may be bank statement or books bank account but it is normally bank statement and after that the second statement balance is reconciled for any unrecorded transactions or any cheques issued but not presented in bank and after the reconciliation is completed both book's bank account as well as bank statement balance should be tally otherwise any discrepancies should be investigated and resolved.
When doing the reconciliation of a bank account the beginning balance on the new month's bank statement should always match what?
ending balance of the previous month
The process of analyzing the different between the bank statement balance and the checkbook balance is?
Bank reconciliation
What is the process of analyzing the differences between the bank statement balance and the checkbook balance is?
The process is bank reconciliation.
Is the Bank Reconciliation statement a part of financial statement?
Bank reconciliation statement is not part of financial statement it is the helping statement to tally bank account with balance in banks statement.
How do you reconcile pass book to cash book?
Reconciliation process is called "bank reconciliation statement" under which both company accounts balance of cash and bank is reconciled with balance of bank account provided by bank statement. The process is that first of all one statement is treated as base statement, it may be bank statement or books bank account but it is normally bank statement and after that the second statement balance is reconciled for any unrecorded transactions or any cheques issued but not presented in bank and after the reconciliation is completed both book's bank account as well as bank statement balance should be tally otherwise any discrepancies should be investigated and resolved.
When doing the reconciliation of a bank account the beginning balance on the new month's bank statement should always match what?
ending balance of the previous month
What are the disadvantages of bank reconciliation statement?
The main disadvantage of a bank reconciliation statement is that you need to be able to do basic math to reconcile your account to the statement. First, you add up all the outstanding checks. Next you add the ending balance on the statement to any outstanding deposits. You then subtract the outstanding checks from the total of the balance and the outstanding deposits. A smaller disadvantage is that it takes time and effort to reconcile your account and your statement.
What items do you subtract when doing a bank statement reconciliation?
Reconciling a checking account balance as shown on your statement to that shown in your check register, you should subtract any uncleared checks, as they cannot have been used to compute the balance.
The process of analyzing the different between the bank statement balance and the checkbook balance is?
Bank reconciliation
What is bank reconciliation?
Bank reconciliation is the act of settling differences contained in a bank statement and the cash account in the books of the bank's customer. Once completed, the adjusted bank balance must prove to the adjusted book balance. When it does, it indicates that both records are correct. Journal entries are then prepared to update the records and to arrive at an ending balance in the cash account that agrees with the ending balance in the bank statement.
What is the process of analyzing the differences between the bank statement balance and the checkbook balance is?
The process is bank reconciliation.
Are the income a balance sheet account?
Income is an income statement account and shown in income statement and not a balance sheet account.
What Is Two Part Bank Reconciliation Statement?
A form that allows individuals to compare their personal bank account records to the bank's records of the individual's account balance in order to uncover any possible discrepancies.
What is the definition of bank reconciliation?
A bank reconciliation is a routine / process / method, etc, by which you reconcile the bank's balance of your account to your balance of your account as of a specific date. (Helps you make sure what think you have, is what the bank thinks you have.)
Format of bank reconciliation statement?
Bank reconciliation statement as at 31st dec.2011 balance as per adjusted cash book xx add unpresented chque xx less uncredited chque xx balance as per bank statement xx
