Accounting·Basic accounting systems · NSSCO 3.1
Bank reconciliation statements
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The bank never quite agrees with your own books at first — and that is completely normal. In this lesson we discover why the Cash Book and the Bank Statement differ, sort every cause into two simple piles, update the Cash Book, and then prepare a Bank Reconciliation Statement that agrees to the cent — including the tricky overdrawn case, all in N$.
What you'll learn in this lesson
By the end you should be able to (NSSCO Accounting 3.1):
- Explain the meaning of bank reconciliation
- Explain the need to compare the Bank account with the Bank Statement
- Explain the causes and effects of differences between the Bank account and the Bank Statement
- Describe the procedure for reconciling the Bank account with the Bank Statement
- Make the necessary entries to update the Cash Book
- Prepare a Bank Reconciliation Statement (including an overdrawn balance)
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