Bank Reconciliation Statement

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:23AM in AAT student discussion
Can someone please please tell me what a bank reconciliation statement is???<BR>I've missed this out completely and don't know anything about this recon statement.<BR>Can somebody please explain it to me!!!<BR>Any help would be appreciated.<BR>Thanx.<BR><BR>Good Luck to everyone for 2mrow.<BR><BR>Vishva!

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Bank Reconciliation Statement

    A bank reconciliation reconciles the balance per the bank statement at the end of a period to the balance per the cash book. It's set out as follows:<BR><BR>Balance per bank statement x<BR><BR>Less outstanding payments (clearing next statement) x<BR><BR>Plus outstanding cash in transit x<BR><BR>Balance per cash book X<BR><BR>Obviously, if the bank balance is overdrawn then you would add unpresented payments and deduct unpresented cash in transit.<BR><BR>Hope this helps.

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