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When are we using journal entries on bank reconciliation?

What is the purpose of journal entries on bank reconciliation?

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Question ajoutée par Dannika Mananquil , Admin cum Accounting Assistant cum Receptionist , Abacas International Technical Works LLC
Date de publication: 2017/01/19
VIJENDRA CS CHIKMAGALUR SHIVANNA
par VIJENDRA CS CHIKMAGALUR SHIVANNA , ACCOUNTANT , BAKE MART LCC

For adjusting entries we pass the journal entries in BR, eg:- Bank service charge for maintaining the account, check printing charges, fees for returned checks, and interest earned.

Mohd Dawar Sheikhfarooqui
par Mohd Dawar Sheikhfarooqui , Accoutant , Zoya Industries

Journal entries are required for the items listed as adjustments to the balance per books on the bank reconciliation. These adjustments involve items that appear on the bank statement that were not recorded in the company's general ledger accounts. Typical adjustments include the bank service charge for maintaining the account, check printing charges, fees for returned checks, and interest earned.The journal entries for the bank fees would debit Bank Service Charges (or Miscellaneous Expense if the amounts are insignificant) and a credit to Cash. The journal entry for a customer's check that was returned due to insufficient funds will debit Accounts Receivable and will credit Cash. Interest earned by the company will be recorded with a debit to Cash and a credit to Interest Revenue (or Interest Income).

Rabe Cipaul Cane
par Rabe Cipaul Cane , Financial Analyst , San Miguel Brewery Inc.

Normally, when there are reconciling items.

Jayakrishnan Jayaram J
par Jayakrishnan Jayaram J , Executive , RM Educational Solutions India Pvt. Ltd. (RM ESI)

We use jounral entires to bring our cash balance as per our cash book and as per our pass book to the same position. There are many scenarios to this. A simple example for this is bank charges debited in pass book alone. Inorder to bring the cash book balance to the pass book balance we pass a journal entry to record this bank charge and bring out cash book balance down.

waqas akram
par waqas akram , Senior Accountant , Nuha Geneeral trading

just to write down adjustments in ledgers

Khaliq Raza MBA   MS   CFE  AFA
par Khaliq Raza MBA MS CFE AFA , Finance Manager , Vertex Trading

We using journal entries to fulfill the matching principles for two ledgers like Cash Book & Bank Book. That's happens at the month end mostly when we need monthly reporting for management & settlement of clients/vendors balances. Thanks

Jeganmogan Kuppusamy
par Jeganmogan Kuppusamy , Audit Manager , Rajagobal and Company

We use journal entries on the following adjustments in relation to bank reconciliation as follows :-

1) Bank charges including yearly annual fees

2) Stamp duty and cheque book charges

3) Cheques cancelled or unpresented cheques for more than 6 months

4) Interest income earned on bank balances

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