Presentation is loading. Please wait.

Presentation is loading. Please wait.

Chapter 5, Section 2 Bank Reconciliation

Similar presentations

Presentation on theme: "Chapter 5, Section 2 Bank Reconciliation"— Presentation transcript:

1 Chapter 5, Section 2 Bank Reconciliation
Cash Control Systems Chapter 5, Section 2 Bank Reconciliation

2 Bank Statement A report of deposits, withdrawals, and bank balances sent to a depositor by a bank

3 Bank’s vs. Depositor’s Records
May differ for several reasons Service charge Outstanding deposits Outstanding checks Math or recording errors Important to complete a bank reconciliation


5 Bank Statement Reconciliation
1. Date 1 2. Check Stub Balance 2 5 3. Service Charge 4. Adjusted Check Stub Balance 6 3 7 5. Bank Statement Balance 6. Outstanding Deposits 8 4 9 7. Subtotal 8. Outstanding Checks 10 9. Adjusted Bank Balance 10. Compare Adjusted Balances

6 Recording a Bank Service Charge on a Check Stub
1. Write Service Charge $8.00 on the check stub under the heading “Other.” 2. Write the amount of the service charge in the amount column. 3. Calculate and record the new subtotal on the Subtotal line. 1 2 3

7 Journalizing a Bank Service Charge
In order for the Cash account to be updated, the service charge must also be recorded in the journal. Debit Miscellaneous Expense Credit Cash Source Document is a memorandum

8 Assignment Work Together 5-2 (Textbook pg. 128) Log in to
Application 5-2 (Textbook pg. 140) Continue working on Study Guide

Download ppt "Chapter 5, Section 2 Bank Reconciliation"

Similar presentations

Ads by Google