cash book help (weasley supplies)

System

Hi All

I am just doing one of the practise units in the osbourne books - on the bank statement there is an o/d balance, this has not been included in the cash receipts or the cash payments book, I take it I have to include this amount when I am trying to reconcille?

Thanks!!

System

Re:cash book help (weasley supplies)

yep, if your reconciling, definately

System

Re:cash book help (weasley supplies)

thanks kerry, so say my opening balance was something like £5050 o/d on the 1st of the month and the closing balance was £330 on the last day of the month, which figure would i be using?

im just getting confused with what my tutor is telling me

System

Re:cash book help (weasley supplies)

newbie100 wrote:

thanks kerry, so say my opening balance was something like £5050 o/d on the 1st of the month and the closing balance was £330 on the last day of the month, which figure would i be using?

im just getting confused with what my tutor is telling me

Hi

Assuming you are reconciling the cash book to the bank statements (i.e. doing bank reconciliation) you would do this

1. Take the balance from the bank statement at the beginning of the period.
2. Add on or take away all the receipts and payments you have listed in the cashbook.
3. This should then equal the balance you have on the bank statement at the end of the period.

If it dosen't it will be because of either:

1. A cheque was paid out and written in the cashbook but hasn't cleared and gone through the bank yet.
2. A cheque was received and entered into the cashbook, taken to the bank and paid in but hasn't appeared on the bank statement yet.
3. There is an entry in the bank statements that you haevn't put in your cashbook. e.g. you received a BACS payment.
4. There is an error in your cashbook.

Sorry I didn't mean that to be so long! But there you go!