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What is the bank reconciliation process?

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Question added by Shameer Nazir Madari , Assistant Finance Manager , METAL AND RECYCLING COMPANY K.S.C. (PUBLIC)
Date Posted: 2016/04/27
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by Deleted user

Bank reconciliation refers to presentation of the reason for the difference's in the bank statement and the company's own accounting books.

The process has two steps.

1: Adjusting the balance as per the bank statement (Adding any transactions which are in transit, and deducting outstanding checks.

2: Adjusting the balance as per the company Books (Deducting service charges, Adding interest and collections made by the bank.

3: Both Balance should be equal.

4: Preparing Journal Entries.

 

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