Bank reconciliation

Bank reconciliation - BANK RECONCILIATIONS Bank...

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1 BANK RECONCILIATIONS 2007-03-06 Bank Reconciliation Topic Slides 2 Bank Reconciliations Bank Reconciliation Objectives: c Verify that the company and bank records are correct and in agreement. c Determine the proper cash balance that should appear on the company’s balance sheet. c Prepare adjusting entries to update company records.
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2007-03-06 Bank Reconciliation Topic Slides 3 Bank Reconciliation Summary Balance per Bank’s Records: This section is only necessary to ensure that the adjusted balance "reconciles" with the bank statement. 2007-03-06 Bank Reconciliation Topic Slides 4 Bank Rec Summary (cont.) c Opening balance taken from E/B on bank statement c Adjust the bank's balance for any items the bank did not know about: s Add all outstanding deposits (deposits in transit at time of statement). s Subtract all outstanding cheques (uncashed cheques). s Check for bank errors (rare but possible!) and add/subtract accordingly. c
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This note was uploaded on 11/09/2010 for the course BUSINESS 2257 taught by Professor Iandunn during the Fall '10 term at UWO.

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Bank reconciliation - BANK RECONCILIATIONS Bank...

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