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Cash Control Systems Chapter 5, Section 2 Bank Reconciliation.

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Presentation on theme: "Cash Control Systems Chapter 5, Section 2 Bank Reconciliation."— Presentation transcript:

1 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

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

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

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 Aplia.com Application 5-2 (Textbook pg. 140) Continue working on Study Guide


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