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LESSON 5-2

LESSON 5-2. Bank Reconciliation. BANK STATEMENT. page 128. A record of deposits, withdrawals, and bank balances sent to a depositor by a bank Each time a bank receives checks, the amount of the check is deducted from the depositor’s account

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LESSON 5-2

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  1. LESSON 5-2 Bank Reconciliation

  2. BANK STATEMENT page 128 • A record of deposits, withdrawals, and bank balances sent to a depositor by a bank • Each time a bank receives checks, the amount of the check is deducted from the depositor’s account • Account service charges are listed on a bank statement • Occasionally a check or deposit might be recorded in a wrong account • If errors are discovered, the bank should be notified immediately LESSON 5-2

  3. DIFFERENCE IN BANK & DEPOSITOR’S RECORDS • Records may differ for several reasons: • A service charge may not have been recorded in the depositor’s business records. • Outstanding deposits may be recorded in the depositor’s records but not on a bank statement. • Outstanding checks may be recorded in the depositor’s records but not on a bank statement. • A depositor may have made math or recording errors. LESSON 5-2

  4. BANK STATEMENT page 124 LESSON 5-2

  5. RECONCILING A BANK STATEMENT • Verifying that information on a bank statement and a checkbook are in agreement • Important aspect of cash control • Used to determine canceled (cashed) checks • When a check is listed as canceled on the bank statement, a check mark is place on the corresponding check stub • A check stub without a check mark means that the check is outstanding (hasn’t been cashed) • Outstanding deposit • Deposit made to the bank which does not appear on the bank statement LESSON 5-2

  6. 10 BANK STATEMENT RECONCILIATION page 125 1. Date 1 2. Check Stub Balance 2 5 3. Service Charge 6 4. Adjusted Check Stub Balance 3 7 5. Bank Statement Balance 6. Outstanding Deposits 8 4 9 7. Subtotal 8. Outstanding Checks 9. Adjusted Bank Balance 10. Compare Adjusted Balances LESSON 5-2

  7. RECORDING A BANK SERVICE CHARGE ON A CHECK STUB page 126 1. Write Service Charge $8.00 on the check stub under the heading “Other.” 2. Write the amount of the service charge in the amount column. 3. Calculate and record the new subtotal on the Subtotal line. 1 2 3 LESSON 5-2

  8. 2 3 JOURNALIZING A BANK SERVICE CHARGE page 127 August 31. Received bank statement showing August bank service charge, $8.00. Memorandum No. 3. 1 4 1. Write the date. 2. Write the title of the account debited. Record the debit amount. 3. Write the title of the account credited. Record the credit amount. 4. Write the source document number in the Doc. No. column. LESSON 5-2

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