Bank Reconciliation Help please

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:24AM in AAT student discussion
Please can someone help me on this one? I am doing a practice sim and for the bank reconciliation, the opening balance used on the bank statement is 95.16OD. The opening balance on the cash book is 585.61. I do see some old cheques listed on the bank statement that were propbably recorded in the prior period's cash book and appeared as recociling items, so I know to disregard those. HOwever, there are 2 cash and cheque deposits in the amount of 5418.54 which both cleared into the bank account on the 26th of March but only one of them is recorded in the cash book. The following questions arise that I need help with:

1) What could be causing such a difference in the opening balances and how do I do a bank reconciliation if the opening balances don't even agree and the prior month's has already been reconciled?

2) Is it possible that the bank made an error on the account in crediting us twice for the same deposit originally made on the 15th, but cleared into bank on the 26th? If so, how does that play into this?

ANy help anyone can give me would be most appreciated as I am racking my brain to no end here. I definitely don't remember the opening balances on the central exam(at least not the June exam) never agreeing.

THank You,
Amy

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Bank Reconciliation Help please

    Hi Amy

    May be a stupid question, but bank reconciliation usually looks at the closing balance of both the cash book and the bank statement. If you start with the bank statement balance and add in cheques/cash that have been paid in and not cleared and deduct cheques that you have issued but not cashed. Also have a look at the cash book to ensure that entries have been made on the right sides and that the resulting calculations are correct.

    I hope this helps.
    Eva :D

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