Report On Bank Reconciliation

CAUSES AND PREPARATION OF BANK RECONCILIATION
STATEMENT IN A MICRO FINANCE INSTITUTION CASE OF MUPECI

BAMENDA
WRITTEN AND PRESENTED BY MEKEM KENNE PEREZ i
This is to certify that Mekem Kenne Perez is the author of this internship report carried
out at MUPECI Bamenda, which is a micro finance institution
It is approved for its contribution to scientific knowledge and meets the regulation and
requirements governing the awards of a HIGHER NATIONAL DIPLOMA (HND) in the
accounting department of ISTTI
Signature……………………….. Date…………………..
Mr. NDOH DIVINE

Academic supervisor
Signature……………………… Date……………………
Mr. TOYON MEFACK DORGELESSE DUCLAIR

Professional supervisor
Signature……………………… Date……………………
BAMENDA
WRITTEN AND PRESENTED BY MEKEM KENNE PEREZ ii
TO MY
LOVELY
FAMILY
BAMENDA
WRITTEN AND PRESENTED BY MEKEM KENNE PEREZ iii
The realization of this piece of work is as a result of contributions, suggestions,

criticisms from professional expert, lecturers, classmates and relatives
I would like to thank the proprietor of HIGHER INSTITUTE OF TERTIARY AND

INDUSTRIAL TECHNICS for getting the beautiful idea for creating the school for us to
further our studies in a conducive and bilingual environment.
My sincere appreciation goes to all lecturers of the Anglophone section of ISTTI

especially to my supervisor Mr. NDOH DIVINE which despite his busy schedule, still took
time to ensure that this report could be realized.
Special thanks go to the Branch Manager of MUPECI Bamenda Mr. TAYON

MEFACK DORGELESS, my professional supervisor and the entire staff of MUPECI
Bamenda for giving me the opportunity to acquire and putting accounting theories
practically in the field
Special credit to Mr. Ashu Fabrice and Mr. Nchendeh Christian for thier support in the
realization of this report both academically and morally
My profound gratitude goes to the following persons for supporting me morally and
financially: My father KENNE Fouodoung Jean Claude, My mother NZANGUE Mekem
Rosine, My guardian Lecpa Douanla Arnaud, My ant Tano Celine, My grand mom Djeusta
Monique, My Uncle Frank Amée. And also Meli Arnold Legrand for his advice and
support. And to all those who helped me realize this report may God Bless them.
BAMENDA
WRITTEN AND PRESENTED BY MEKEM KENNE PEREZ iv
MUPECI Bamenda (Mutuelle pour la promotion de l’épargne et du crédit

d’investissement) is a private micro finance institution (category one) which was created
in 2003. It is principally involve in Collecting and securing their members savings,
Granting and following up loans in diverse domains, Contributing in modernization and
development of the rural sector, Offer multi-services according to member’s needs. It also
has a number of branches all over the national territory.
During my internship period of eight weeks in MUPECI Bamenda, we carried out most of
our activities at the counter and the branch manager’s office. These activities include
creation of accounts, filling the Recus and Emis registers, prospection and
withdrawal/deposit/standing order transactions. During this, we notice they were some
major elements that gave rise to the bank reconciliation statement and that the MFI use
only the OHADA approach to prepare that statement. Due to this, it made us to come up
with the topic “Cause and Preparation of a Bank Reconciliation Statement”. This work
is divided into two parts and four chapters each chapter having two sections.
As well as our internship was a benefit to us and also to the enterprise, nevertheless we had
face various difficulties. At the end of this work, we came up with some recommendations
which can remedy or bring diversified ideas in the preparation of the bank reconciliation
statement like trying to use the international accounting approach.
BAMENDA
WRITTEN AND PRESENTED BY MEKEM KENNE PEREZ v
MUPECI Bamenda (Mutuelle pour la promotion de l'épargne et du crédit d'investissement)

est une institution privée de microfinance (catégorie 1) qui a été créée en 2003. Elle
collabore à la collecte et sécurise l'épargne de ses membres, subvention et suivi dans divers
domaines, Contribuer à la modernisation et au développement du secteur rural, Offrir des
services multiples selon les besoins des membres. Il a également des succursales sur tout
le territoire national.
Pendant ma période de stage de huit semaines à MUPECI Bamenda, nous avons réalisé la
plupart de nos activités au comptoir et au bureau du chef d’agence. Ces activités
consistent : la création de comptes, le remplissage des registres Recus et Emis, la
prospection et les transactions de retraits / dépôts / ordre de virement. Pendant ce temps,
nous remarquons qu'ils ont été quelques éléments majeurs qui ont donné lieu à l'état de
rapprochement bancaire et que l'IMF utilise uniquement l'approche OHADA pour préparer
cette déclaration. Pour cette raison, cela nous a amenés à trouver le sujet «La cause et la
préparation d'une rapprochement de réconciliation bancaire». Ce travail est divisé en deux
parties et quatre chapitres chaque chapitre ayant deux sections.
De même que notre stage a été un avantage pour nous et pour l'entreprise, nous avons
néanmoins rencontré diverses difficultés. À la fin de ce travail, nous avons formulé des
recommandations qui peuvent remédier ou apporter des idées diversifiées dans la
préparation de l'état de rapprochement bancaire, comme essayer d'utiliser l'approche
comptable internationale.
BAMENDA
WRITTEN AND PRESENTED BY MEKEM KENNE PEREZ vi
Due to the dynamic nature of the world nowadays, the state of Cameroon is educating
youths in the domain of professional training for the purpose of building up their
professional skills in other to meet up with the 2035 emergence project and to reduce the
rate of employment in the country. In this regard order
No.014/0402/MINESUP/SG/DDES brought about the creation of INSTITUT

SUPERIEUR DES TECHIQUES TERTIAIRES ET INDUSTRIELLES, with the objective
of training youths for the acquisition of Higher National Diploma (HND), Professional
Bachelor Degree and Professional Masters in the following specialties
 Accountancy
 Banking and Finance
 Management
 Marketing
 Secretarial studies
 Transport and logistics
The HND examination is an intensive two year program whereby an internship is carried
out and a report is written on the internship to be defended in front of a jury as part of the
HND examination.
It is in this regard that we carried out two months academic internship at MUPECI
Bamenda to meet up with the demands and we came out with the topic CAUSES AND
BAMENDA
WRITTEN AND PRESENTED BY MEKEM KENNE PEREZ vii

PREPARATION OF A BANK RECONCILIATION STATEMENT CASE OF MUPECI
BAMENDA
MUPECI Mutuelle pour la promotion de l’épargne et du crédit

d’investissement
CAMCCUL Cameroon Co-operative credit union league
ISTTI INSTITUT SUPERIEUR DES TECHNIQUES TERTIAIRES ET

INDUSTRIELLES
OHADA Organisation pour L’harmonisation des droits de d’affaire
IAS International Accounting Standard
CEMAC Communauté économique et monétaire de l’Afrique centrale
BEAC Banque des états de l’Afrique centrale
COBAC Commission bancaire de l’Afrique Centrale
CFA Communauté Financière Africaine
MINIFI ministère des finances

BAMENDA
MFIs Microfinance institutions viii

WRITTEN AND PRESENTED BY MEKEM KENNE PEREZ
MAD Mise à disposition
SV Signature Vérifiée
CERTIFICATION ............................................................................................................................................... i
DEDICATION .................................................................................................................................................. ii
ACKNOWLEDGEMENTS ................................................................................................................................ iii
ABSTRACT..................................................................................................................................................... iv
RESUME......................................................................................................................................................... v
PREFACE ....................................................................................................................................................... vi
LIST OF ABBREVIATIONS ............................................................................................................................. vii
GENERAL INTRODUCTION ............................................................................................................................. 1
PART ONE: ..................................................................................................................................................... 4
THE INTERNSHIP ENVIRONMENT .................................................................................................................. 4
SECTION ONE: History and Creation ......................................................................................................... 5
CREATION .............................................................................................................................................. 5
Section Two: Organizational Structure, Operations and Business Environment OF MUPECI Bamenda .. 9
Organizational Structure ....................................................................................................................... 9
Other services ..................................................................................................................................... 10
Mission of MUPECI .............................................................................................................................. 10
BAMENDA
WRITTEN AND PRESENTED BY MEKEM KENNE PEREZ ix

Product and services of MUPECI ......................................................................................................... 10
Who can be a Member of MUPECI? ................................................................................................... 11
Conditions for membership ................................................................................................................ 12
MUPECI finance the following ............................................................................................................ 13
CHAPTER TWO: EVOLUTION OF INTERNSHIP ACTIVITIES IN MUPECI BAMENDA....................................... 14
SECTION ONE: RECEPTION AND PRESENTATION TO THE ENTIRE STAFF ................................................ 14
SECTION TWO: ACTIVITIES CARRIED OUT DURING INTERNSHIP ............................................................ 15
Explanations of activities carried out by the intern ............................................................................ 15
Justification of topic ................................................................................................................................ 19
PART TWO: PRACTICUM/THE FIELD WORK ................................................................................................ 20
CHATPER THREE: CAUSES AND PREPARATION OF A BANK RECONCILIATION STATEMENT ....................... 20
Section A: some basic concepts and causes of bank reconciliation statements .................................... 21
Causes of Disagreement between the Bank Statement and the Cash Book Bank Column .................... 22
SECTION B: Preparation of the Bank Reconciliation Statement and Means Used ................................. 24
 International Accounting Approach ............................................................................................ 24
 OHADA Approach ........................................................................................................................ 29
 Advantages of bank Reconciliation Statement ........................................................................... 35
 Disadvantages of bank reconciliation statement........................................................................ 36
CHAPTER FOUR: CRITICISMS AND RECOMENDATION ................................................................................ 38
Section One: Criticisms ........................................................................................................................... 39
Section Two: Recommendations ............................................................................................................ 40
GENERAL CONCLUSION............................................................................................................................... 41
BIBLIOGRAPHY ............................................................................................................................................ 43
APPENDIXES ................................................................................................................................................ 44
BAMENDA
WRITTEN AND PRESENTED BY MEKEM KENNE PEREZ 1
In every organization, finance is as important as blood in the human system. Bank or

cash at bank is one of the most liquid assets of an organization. It is a current asset which
is needed for the day to day running of the business and if not well managed, it will prevent
the organization from meeting up with its day to day activities which can cause a firm to
close down. As organizational activities are carried out, it is important for the organization
to do reconciliation with it cash book bank column with his bank statement so that at any
point in time, the organization is sure of the exact amount they have in the account. If the
organization doesn’t carry out the reconciliation, it might restrict it from carrying out
certain activities because they might think that they have money in their account to carry
out a particular project meanwhile it isn’t enough and this slows down business activities.
The word “Reconcile” means to make compatible. It frequently happens in business that
two sets of figures which agree for some reason do not. For example, we might estimate
that a certain profit should be made in a given period, but in fact we fail to achieve this
expected profit. A good accountant would seek to reconcile the two sets of figures,
examining the reasons for the discrepancy.
A bank reconciliation statement is a summary of banking and business activity that

reconcile an entity’s bank account with its financial records. The statement outlines the
deposits, withdrawals and other activity impacting a bank account for a specific period. A
bank reconciliation statement is a useful financial internal control tool use to thwart fraud.
 Problem Statement
The Frequent disparity between the banks statement and the cash book bank column
has led us to the finding out of the causes of the disparity and the preparation of the
bank reconciliation statement. The bank reconciliation statement can be used as to
for internal audit in firm or enterprise and it can be to avoid theft or control whether
is there embezzlement of the enterprise revenues. We chose this topic so as to
answer to the following principal question:
- What are the causes of frequent disparity between bank statement and cash book
bank column or bank account?
BAMENDA

- How to prepare a bank reconciliation statement?
 Objectives of studying Bank Reconciliation Statement

 To the meaning and need for the preparation of bank reconciliation statement
 To recognize the reason for the difference between bank balance as per cash book
and as per bank statement
 To prepare a Bank Reconciliation Statement
 To determine the correct bank balance as per cash book
 To prepare the journal entries for the corrections needed in the books
 To validate that there are no unrecorded:
- Bank debits or credits
- Cheques that cleared the bank
- Deposits that showed in the bank
- Any bank error or adjustment from period are corrected by the bank this month
 Significance of the study
 To be able to merge theoretical knowledge with practical realities in the field
 To serve as reference to anyone who will like to carry out the same task
 With this, the public can also know causes and preparation of a bank reconciliation
statement
 Bank reconciliation statements ensures the accuracy of the balances shown by the
pass book and cash book.
 Bank reconciliation statement helps to detect and rectify error committed in both
books
 To ameliorate the way MUPECI Bamenda prepares its BRS
 Methodology
This report has been written based qualitative and quantitative information gotten from
both primary and secondary sources of data.
 Primary data
The primary data used by the intern to prepare this report is information gathered from
the branch manager and the staffs in the MFI (MUPECI) through direct questioning
 Secondary data
BAMENDA

The secondary data was also used by the intern to explain more the findings, processes
and problems encountered. This was gotten from already written documents by
MUPECI for adverts and the intern also made use of the internet for some research, text
books, dictionaries, already written reports by other students.
 Plan of work
This work comprises on how I carried out my internship in MUPECI Bamenda and
with the chosen topic “the cause and preparation of a bank reconciliation statement in
a micro finance case of MUPECI Bamenda”. Details of it will be seen in the subsequent
pages. For better understanding, it has been divided into 2 parts with 2 chapters each
making a total of 4 chapters and each chapter is divided into 2 sections
PART ONE: The internship environment
Chapter one: Presentation of the MFI (MUPECI)
Section one: history, creation and evolution
Section two: Organization and operations
Chapter two: Evolution of internship activities
Section one: Reception and presentation of the host department
Section two: Effective internship activities
PART TWO: The field work
Chapter Three: causes and preparation of a bank reconciliation statement
Section one: concept and causes of bank reconciliation statement
Section two: preparation of bank reconciliation statement
Chapter four: Criticisms and Recommendations
Section one: Criticisms
Section two: Recommendations

BAMENDA
This is composed of two chapters where the first one shows the presentation of MUPECI
Bamenda and the second shows the evolution of internship activities in the company.
BAMENDA
In this chapter we will discuss about MUPECI Bamenda’s history, creation and its different
products and services. This chapter is divided into two section. Section one talks about the
history and creation while section two talks about is product and services.
CREATION
In 2003, Mutual for the promotion of savings and investment credit was created. She
obtained her authorization to open that same year and registered under COOP/GIC No
LT/CO/28/03/4904 as a micro finance establishment of first category affiliated with
CAMCCUL which has been active in the field for nearly 45 years and has operated within
the framework of cooperative cooperation. On July 14 2003, the opening of the doors of
its first agency located at AKWA Rue Gallieni (Bonadibong) which is also the
headquarters. In December 2005, obtaining its approval under No 920 of 26/12/2005 marks
a new beginning with its several extensions in several regions. It is seen to have a network
firmly established to make its modest contribution to the development of Cameroon. Since
its founding MUPECI has made its way in the fight against poverty through the permanent
encouragement of its members notably through the collection, securing of savings and the
granting if micro credit in various activities generating income.
Particular emphasis was placed on the rural world in 2007 with the creation of COPRODI
F/J (comites pour la promotion et developement des initiative economiques des
femmes/Jeunes membres de MUPECI). Committees that have helped women and youth
groups to support their activities in rural areas. This action in favor of agro-pastoral
BAMENDA

activities earned MUPECI in December 2008 in Paris the prize for its First Agricultural
project in Africa after a competition involving projects from several African countries
organized by EMRC-Rabobank. This marks the beginning of a partnership with Rabobank
based in Holland. In 2009 the work done by MUPECI is once again awarded in the category
of best micro finance in central Africa by the Foundation Afrique Excellence.
In 2013, MUPECI was also awarded by CAMCCUL a distinction for Performance and
stability while it occupies the first place of this Network in the section of the gulf. Today
among the 1st 10 MFIs in Cameroon according to MINIFI statistics, MUPECI is
progressing with a vision of a leader in the sector. All this thanks to the development of the
leadership staff and above all the enthusiasm and confidence of the members.
Since the rural world has become one of the main priorities for us, PADMIR and other
organizations are constantly trusting us in this fight that we face day in and day out against
poverty in the country and in Africa. With our support, the Penja pepper has become an
international label (with OAPI recognition) soya beans, cassava, plantain bananas to name
only these products, are expanding in our country at large producers who can finally find
the means to develop their plantations and the reliable outlets for their products
The ambition for MUPECI is today to promote the construction of a value of chain in the
sector generating income where each actor will have to find its account especially in the
path of emergence. Taking into account the solicitation of its member, MUPECI continues
to innovate in the service by setting up new product such as bank assurance, notably with
the sponsored. MUPECI family insurance account, the visa MUPECI credit card for new
types of credits, to promote investment, savings, remuneration at reliable rates, inland
money transfer (Speed MAD) and internationally via Money gram & SINGUE and many
other…….
MUPECI is constantly aligning itself with the new information technologies in this regard,
special emphasis is also training staff on all compartments all this for great satisfaction of
members and users. In short, we are listening to our members with more than 25000
members in a stretch that grows the leaders of MUPECI can express their satisfaction to
have dozen years holds the fixed objectives namely;
1. Compliance with commitments with the collection and securing of members

savings as well as regular meetings of general assemblies
2. The fight against unemployment through the employment of young people
BAMENDA

3. Training of members and organized groups in their income-generating activities
4. Funding for income generating activities wherever needed has been felt especially
in the context of the fight against rural exodus and poverty
5. The lunching of innovating products such as bank assurance, money transfer, VISA
MUPECI bank card
6. Promoting the education of young people through the funding of studies through
the MUPECI school credit
7. Support for social project
At this moment when this structure is proud of its memories its leaders are more than ever
determined with the professionalism of the employees, the creation of new entities and the
launching of the construction of its head quarter building and the bangang agency as well
as the modernization of its infrastructure, to work more for a better world for all. Especially
as big projects awaits us again. This exalting work will be done only with all the strength
of its members gathered around a version of leader
It is the place of encourage the members of the MUPECI thanks to whom this course has
been possible. We encourage those who are still taking the plunge to join us so that
MUPECI remains always and still FINANCE TO THE SERVICES OF INVESTMENT
Today MUPECI has 19 agencies across the national territory of Cameroon. Here are
some of the agencies of MUPECI across the national territory:
- AKWA BONADIBONG
- BEPANDA
- YAOUNDE MARCHE CENTRAL
- YAOUNDE MOKOLO
- BAFOUSSAM
- MBOUDA
- BAMENDA
- BANGANG
- OKALA
- DSCHANG
- AKAWA PORTIQUE
- MBOPPI
- PENJA
BAMENDA

- YAOUNDE BIYEMASSI
- BATCHAM
- FOUMBOT
- NGAOUNDERE
- BALESSING
- MELONG
 INFORMATION SHEET
The information sheet is a document of the enterprise that tells us different information
about its identification like the company name, tax payer No, tax system, email etc. The
information sheet of MUPECI Bamenda can be as follow:
Acronyms MUPECI
Company name Mutuelle pour la Promotion de l’Epargne

et du crédit D’investissement
Head office Rue Gallieni Akwa-Douala
Special regime Private Enterprise
Tax Payer No M050300015527X
Post office box 477 Bamenda
Telephone/Fax (237)233362911
Email www.mupeci.net
Tax system Real regime
Branch manager Dorgelesse Tayon
Telephone (237)677407950
BAMENDA

 Geographical Situation
MUPECI Bamenda is found in the North West region of Cameroon and it is situated in
Bamenda at the commercial avenue T-junction laking Building.
Organizational Structure
The organizational structure shows hierarchy and the flow of powers from top to bottom
of MUPECI. And it can be as follows:
(APPENDIX 1)
A structure is the way in which tasks and responsibilities are distributed in a company. The
structure of MUPECI is as follows
1. The general assembly which defines the orientations of the cooperative and meets
at least once a year.
2. Chairman of the Board
3. Board of Directors which is in charge of the implementation of the resolutions of
the General Assembly. He reports annually to the general meeting; this council can
be assisted by the director
4. The supervisory committee: it ensures that the interests of the members are fully
satisfied. It is the representative of the general assembly
5. The credit committee: it is the body responsible for granting credit, it is composed
of five members including three of the board of directors, one of the control
committee and the other of the credit committee
6. The General Management consists of the Chief Executive Officer and a Deputy
Chief Executive Officer who are responsible for overseeing the activities and
developing strategies for a smooth operation of the Mutual.
7. The different departments (accounting, credit, control, project, marketing, IT and
legal) which are responsible for putting into practice the directives given by the
Director and the Deputy Director General
8. The head of agency: takes care of the smooth running of the activities in his agency
and reports to the general direction
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9. The credit manager: it is the charge of credit operations in the agency
10. The operations manager: is in charge of the processing of the MAD issued from
the counter, the codification and the dispatch to the concerned agencies; as well as
MAD received from other agencies and supervision of all back-office operations.
11. The person in charge of the counter: for mission among other things the reception
of the new members for adhesions, the orientation and the information of the
members, the update of the savings booklets, the reception of orders, discounts
checks and requests for certified check, to respond to customer complaints and
opening accounts, ensure the control of all the counter operations of the day. In short
coordinates all operations of natural persons
12. The cashier service: from the collection of cash payments and payments of checks
and withdrawals, proceeds to the registration of certain cash
Other services
MUPECI is also carry out the following services:
 Money Gram.
 Sigue.
 Transfast.
 Speed Mad.
 Africash.
 Mobile Money.
 Orange Money.
Mission of MUPECI
 Collect and secure their members savings.
 Grant and follow up loan in diverse domain.
 Contribute in modernization and development of the rural sector.
 Offer multi-services according to member’s needs.
Product and services of MUPECI

BAMENDA

 Subscription of social shares.
 Classical savings account.
 Precautionary savings account.
 Individual current account.
 Business/Enterprise current account.
 Time deposit account.
 Rapid money transfer.
 Money gram transfer.
 Negotiations for certificates of deposits.
 Purchases and sales of traveler’s cheques.
 Granting of loans in diverse domains.
 Banks Guarantee.
 Bank Insurance.
 ATM card (MUPECI VISA CARD).
 Etc.
Who can be a Member of MUPECI?

 Farmers
 Animal rearers
 Craftsmen
 “Bayam-selam”
 Auction sellers
 Traders
 Transporters
 Common initiative groups
 Communal interest groups
 Rural and urban associations
 Small and medium size enterprise/industries
 Workers in the private sector
 Students
 Mechanics
 Carpenters
 Etc.
BAMENDA
Conditions for membership

a) Individual or physical person
1) Savings account
- 02 passport sized photograph 4*4
- Photocopy of national identity card
- Minimum amount of at least 28000 fcfa allocated as follows:
- Adhesion fees: 3000 fcfa
- Subscription to at least 10 social share of 1000 fcfa each
- Solidarity fund 40% of social share
- Minimum amount for opening an account is 5000frs
- Account insurance 6000 fcfa for one year renewable
2) Individual current account
3) Salary account
b) Moral person
1. Association Account
- Certified true copy of status
BAMENDA

- Certified copy of legal statement designing the account signatories
- Photocopy of national identity card and 02 passport sized photo 4*4
- Subscription of at least 10 social share of 1000 fcfa each
- Solidarity fund: 40% of social share
- Minimum amount for account opening 10000 fcfa
2. Business current account
- Statue of the enterprise and powers of the executive members(memorandum of
association)
- Trade register
- Valid license
- Tax payer card
- Photocopy of national identity card and 01 passport sized photo of each signatory
- Location map of the enterprise/company
- Minimum amount of 67000 fcfa allocated as follows:
- Subscription of at least 10 social share of 1000 fcfa each
- Solidarity fund: 40% of social share
- Minimum amount for account opening 50000 fcfa
MUPECI finance the following

1. Agriculture and breeding loans
- Micro-credit for agriculture and small modern stock farming in rural areas
- Micro-credit for the acquisition of inputs
- Micro-credit for production
- Micro-credit for conservation and distribution
2. Production loan
- Micro-credit for investment (loan for motorcycle, loan for trade, etc.)
- Micro-credit for the informal sector (auction sellers, “bayam-selam”, etc.)
3. Social loan
- Short term loan for the acquisition of land, construction, habitation, etc.
- School fees loan
BAMENDA

- Advance on salary
- Wedding, baptism
- Etc.
4. Overdraft
- If you are owner of an individual or business current account, you can benefit from
this facility to run your business
This chapter spells out all the activities we engaged in during our internship period in
MUPECI Bamenda. It is divided into two sections: section one talks about our receptions
and presentation to the entire staff of MUPECI Bamenda and section two spells out the
various activities carried out during our internship period.
Our first day in MUPECI Bamenda, we were received by the branch manager
of MUPECI Bamenda. After we opened our doors at 8:00 am, the branch manager
called us to his office on told us some rules and regulation of the micro finance
institution (MUPECI) and he also told us how an intern should act and behave during
BAMENDA

the internship period. He later presented us to the entire staff of MUPECI Bamenda. He
presented us to; the chief of operations (accountant), the cashiers, those working at the
counter and finally himself. The manager handed internship badges to us to differentiate
us from other workers in the eyes of the customers and he also spoke to us bank secrecy.
We later received brooches from the manager which showed the micro finance
institution’s mission, services, operation, customers, types of loans, and how to create
an account and other documents showing the history of the micro finance institution.
During the internship period, most of our activities were carried out at the counter, chef
des operations office and the manager’s office.
In the course of the internship, many activities were carried out by the intern at
MUPECI. The internship carried out by the intern at MUPECI helped him to better
integrate with the professional world. While at MUPECI, the following activities were
carried out:
- Creation of accounts
- Deposits
- Withdrawals
- Transfer order
- MAD(mise a disposition) transactions
All these activities are being been carried out daily on a computer program called
NETSOFT BANK version 5.10 and ANNY REPORTING. The intern will do the
manual part and the staff of MUPECI will do the computerized part since the intern was
not allowed to have access to the computer.
- Prospection
- Fill the register of received and sent telegraphic
- Arranging and compiling of loan document
Explanations of activities carried out by the intern

Week one-week three activities
BAMENDA

i. Creation of accounts
A customer that want to deposit and doesn’t has an account has to create one in order
do deposit her or money. Below are the following steps and items required to create an
account;
For a savings account the customer must fulfill the following conditions:
- Must have a photocopy of national identity card

- Provide a 4*4 passport sized photo
- Write his phone number
- Write his profession
- Write his geographic situation
At the counter:
When the customer presents himself at the counter, we help him/her to fill the following
files at the counter;
- Files to create an account

- Signature carton
- Four deposit slips(one for social share, adhesion, solidarity fee and amount for
account opening)
During the creation process, the customers will a form, a signature carton and sign in the
register of social shares.
- All customers who have created a savings account will be given a savings booklet
and those who have created a current account will be given a cheque booklet.
The customer will then demand for a cheque booklet depending on the number
of pages that he/she want. At MUPECI there exist cheque booklet with 25 and
50 pages which 2500 fcfa and 4000 fcfa respectively.
ii. Deposits
This when a customer makes a deposit of money at the counter of a bank so that his or
an account can be credited. It is being carried out by the customer at the teller and the
customer will fill the deposit slip or he/she will give the name of the agency, the date,
BAMENDA

account name, account No, the amount in correspondence with the bank notes and coin
that he/she has, the name of the depositor and the signature.
The operation can be carried out by the owner of the account or by a third party. There
are two types of deposits we have: deposits on site and distance deposits. The teller will
receive the money, acknowledge it, and affix the RECUS stamp, register it, print a
receipt and places the payment in customer’s savings book and it signed by a staff at
the counter.
When we talk of deposit on site we mean depositing money at the agency itself while
distance deposit is when a customer deposits money in his/her account or in an account
in another agency of MUPECI in a different town. It should be noted that if the
customer’s account is located outside the city where the payment is made, the
transaction is considered as a transfer then transfer charges have to be paid. This for
people with the saving account.
iii. Withdrawal
It is a transaction that is for a customer who holds an account or who has received the
power of attorney from the account to withdraw funds. To do this, the customer must
fill a withdrawal cheque from savings account or current account (the manager must
ensure that the book balance is in line with the book). Thus, the customer completes the
withdrawal slip, without forgetting to writer at the back of the cheque his/her names,
the number of the national identity card, his address and finally his signature. After
verification, the person in charge verifies the signature of the customer and affixes the
SV stamp and sends the cheque to the branch manager for final verification and later to
the cashier for payment. For any withdrawal, we must ensure that:
 The payment is to the owner of that account

 The amount in words and in figures is the same
 Verify that that there are sufficient funds in the account
iv. Transfer order
Transfer order is an operation where the customer gives an order for his account to be
debited to the credit of his/her other account or for another person. To carry out this
transaction, we have to fill the transfer order form which is later on used as a justification
document for accountability.
BAMENDA

v. MAD (Mise a disposition) Transactions
MAD is a one of the services offered by MUPECI to all its customers so that they can be
to transfer and receive money with other agencies of MUPECI. Here there are transfer
charges. We also have to note that either the sender or the receiver must be an account
owner at MUPECI.
Week four- week six activities
vi. Prospection
Prospection is the research of potential clients on the field for the company (market). It
consists of convincing the customer and bringing forward all the positive aspects of the
company and its products. The prospectors has to know his product and his enterprise and
capable of answering the customer’s entire questions concerning the enterprise or the
product. Before carrying out prospection, the prospector has to select his area of
prospection; the area of prospection is selected in order to optimize the returns. Some
technics of prospection include:
 Direct contact
 Programmed visit
When prospection is carried out, the must be a follow up without the follow up, the
prospection will almost a waste of time since they are some customers which are adamant
to change one must follow them up all the time. So a follow up after prospection is very
important.
During my internship at MUPECI, we carried out prospection with the main aim of trying
to increase the number of members of MUPECI. Prospection was carried out in shops,
quarters, offices, and with people at the road side. The prospection form of MUPECI
Bamenda is found in the appendix.
vii. Fill the register of received and sent telegraphic
This is a book where all operation concerning money send and received are being recorded.
The transactions can either money send or received in to an account or to some one that
doesn’t has an account. They comprise of two books as per MUPECI we have telegraphic
BAMENDA

Recus and Emis. In telegraphic Recus we have operations concerning money transaction
withdrawn for form our agency (MUPECI Bamenda). In telegraphic Emis we have
operation relating money transactions sent to other agencies of MUPECI.
The operations can push through whether the person has an account or not. If the person
has an account, the money will be sent or withdrawn for his/her account but if the person
doesn’t have an account, an MAD operation shall be carried out.
viii. Arranging and compiling of loan document
Week seven- week eight
During the last two weeks, we became more efficient we efficient in the activities we were
assigned to do within first three weeks.
During our stay at MUPECI Bamenda, we were given many assignments. It was
during these assignments that we tried to blend what we learn in school
theoretically to what is done practically in the field. We notice they were
some major elements that gave rise to the bank reconciliation statement and that the MFI
use only the OHADA approach to prepare that statement. Due to this, it made us to come
up with the topic “Cause and Preparation of a Bank Reconciliation Statement”. And
our topic will be out to answer the following questions:
- What are the causes of frequent disparity between bank statement and cash book
bank column or bank account?
- How is a bank reconciliation statement prepared?
BAMENDA
In this part, we are going to blend what we learn in school theoretically

to what we were doing at the MFI. This part is composed of two chapters. The first
chapter presents the major element that gives rise to a bank reconciliation statement and
preparation of bank reconciliation statement. The second chapter on criticisms and
recommendations of the problems faced during the internship period
In this chapter, we will amalgamate idea gotten from the theoretical knowledge and ideas
gotten field during our internship period. We will bring out the elements that gives rise to
a bank reconciliation statement and the different approaches of preparing the bank
reconciliation statement.
BAMENDA
As earlier said a bank reconciliation statement is a summary of banking and business

activity that reconcile an entity’s bank account with its financial records. The statement
outlines the deposits, withdrawals and other activities impacting a bank account for a
specific period. A bank reconciliation statement is a useful financial internal control tool
use to thwart fraud.
The bank reconciliation statement is prepared base on two documents; the cash book
and the bank statement. The cash book use to record all cash and bank transactions. a cash
is prepared in T-account format with multiple analysis columns on both the debit and the
credit. It serve the dual function of been both a subsidiary journal and general ledger
account (bank account).there are three types of cash books:
- Single column cash book

- Double column cash book
- Three column cash
The bank statement is detailed analysis of the transactions in a depositor’s account issued
(usually monthly) by a bank describing its activities during the period. This statement
shows the financial position of the customer as per bank. The statement enables the
customer to compare it with his cash book so as to ascertain the exact amount or balance
left in the bank.
The above documents are the principal document used to prepare a bank reconciliation
statement. Most of the balance as per the bank statement is always correction. It’s the
balance as per the cash book that is mostly used to prepare the bank reconciliation
statement.
Definition of terminologies used:

 Bank
An establishment authorized by a government to accepts deposits, pay interest, clear
cheques, make loans, act as an intermediary in financial transaction and provide
other financial services to its customers.
BAMENDA

 Cash book
It’s a journal in which all cash receipts and payments (including bank deposits and
withdrawals) are recorded first in a chronological order for posting in to the general ledger
 Wire transfer
It is an electronic transfer of funds through the cable and wireless networks that
unite the world’s banking system. It is also called cable transfer or bank wire
 Direct debit
An arrangement between a bank and a customer in which the bank is given
authorization to automatically debit a customer’s account to pay a creditor or service
provider based on a fixed schedule of payment or invoiced amounts
 Cheque
A cheque is a demand draft drawn on a bank against its maker’s (drawers) funds, to
pay the stated amount of money to the bearer or named party on presentment
(demand) on a stated date
1. Cheques deposited but not yet credited by the bank:

When cheques are received, they are entered in the cash book immediately.
There may be a delay of a day or two in sending the cheque in the bank. Moreover
the bank usually does not credit the customer until the bank gets the cheque realize
if there are on other bank. In the meantime, therefore, the cash book will show more
balance than what the bank shows in his own books
2. Cheques issued but not yet presented to the bank:
As soon as cheques are issued, they are entered in the cash book, but the
bank makes no entry until the cheques are actually presented for payments and are paid.
This means that the bank shows a higher balance in favor of the customer than what the
cash book of the customer shows.
3. Bank debit and credit memos:

BAMENDA

Debit memos reflect deductions for such items as service charges, notes paid
by the banks for the depositor, etc. the bank often makes charges for the services it renders.
If there is an overdraft the bank will also charge interest. These bank charges and interest
are entered in the pass book and the entry is generally made in the cash book only when
the bank statement is received. Credit memos reflects additions for such items notes
collected for the company by the banks and wire transfers of funds form another bank to
the depositor’s account.
4. Collection items:
The banks is always entrusted with the task of collecting interest on securities
or dividends on shares or even collections of amounts due on bills of exchange or
promissory notes. The bank will credit its customer as soon as the amounts are received.
But the entry by the customer in the cash book is only done when information has been
received from the bank.
5. Errors:
There may be errors in the cash book/bank statement
6. Bounce cheques(dishonored cheques)
At time, a cheque deposited by a customer is ultimately returned unpaid for

whatever reason. Such a cheque is called a bounce cheque or rubber cheque. This cheque
was already recorded in the cash book of the customer not knowing that it will eventually
been returned. The bank may also charge the depositor for processing an uncollectible
cheque.
7. Standing orders:
A firm can instruct its bank to pay regular amounts of money at stated dates.
To persons or firms. The firm will only know whether a banks has paid or not when the
bank statement is received.
8. Direct debit:
This is an arrangement made by the creditor with a bank to debit its debtors’
accounts. This is only done with the prior permission of the debtor or account holder.
BAMENDA

When the bank has effected the transaction, the creditor will only know through the
bank statement.
There two main methods used to prepare the bank reconciliation statement:
 International Accounting Standard Approach

 OHADA Approach
 International Accounting Approach

Under the international accounting standard, there two method of the preparing the bank
reconciliation statement:
1st Method
Compare the entries in the bank statement with entries in the cash book bank column.
Tick off entries found in both bank statement and cash book. Note that entries on the debit
side of the cash book are ticked against those on the credit side of the bank statement and
entries credit of the cash book are ticked against those on the debit side of the bank
statement. The unticked items on the credit side of the cash book will represents cheques
issued by the enterprise but not yet presented for payment(unpresented cheques); while
unticked items on the debit side of the cash book will represent cheques paid into the bank
but not yet credited to the company’s account by the bank(uncredited cheques).
On the other hand, the unticked items on the credit side of the bank statement relate to
the credits given, if any for example (interest received, wire transfer, notes collected etc.)
while the unticked items on the debit side of the bank statement relates to debit memos for
example (service charges, commissions etc.)
Then, add all unticked items on the credit side of the cash book and credit side of the
bank statement to the cash book balance. Meanwhile all unticked items on the debit side
of the cash book and debit side of the bank statement are subtracted from the cash book
BAMENDA

balance. If no errors existed, then the result should be the same as balance in the bank
statement. The format is as follows:
Bank reconciliation statement as per cash book balance

Cash book balance xxx
Add unpresented cheques xxx
Less credited cheques xxx
Balance as per bank statement xxx
Or
Bank reconciliation statement as per bank statement
Bank statement balance xxx
Add uncredited cheques xxx
Less unpresented cheques xxx
Balance as per cash book xxx
Example 1: the following information was extracted from the cash book and bank statement
of MUPECI Bamenda for the month of July 2017
Cash book
date Receipts Amount payment Amount
(fcfa) (fcfa)
27/7 Balance b/f 4,000,000 A Ashu 105,000
29/7 J. prince 120,000 M. chang 150,000
30/7 M. Michael 220,000 Balance c/d 4,085,000
4,340,000 4,340,000
1/8 Balance b/d 4,085,000
Bank statement received from ECO Bank

Elements Dr. (fcfa) Cr. (fcfa) Balance (fcfa)
Balance b/f - 4,000,000
BAMENDA

Cheque - 120,000 4,120,000
Credit transfer Leroy 700,000 4,820,000
A Ashu 105000 - 4715000
Bank charges 20000 - 4695000
Required: prepare a bank reconciliation statement as at 1/08/2017

Solution:
MUPECI Bamenda bank reconciliation statement as at 1/08/2017
Elements FCFA FCFA
Cash book balance 4,085,000
Add unpresented cheques 150,000
Add credit transfer: Leroy 700,000 850,000
4,935,000
Less uncredited cheques: M Michael (220,000)
Less bank charges (20,000) (240,000)
Balance as per bank statement 4,695,000
An alternative approach is to start with the bank statement balance and then reconcile with
the cash book balance as shown below: MUPECI Bamenda bank reconciliation statement
as at 1/08/2017
Element FCFA FCFA
Bank statement balance 4,695,000
Add uncredited cheques 220,000
Add bank charges 20,000 240,000

BAMENDA

4,935,000
Less unpresented cheques M chang 150,000
Less credit transfer: Leroy 700,000 (850,000)
4,085,000
2nd METHOD
UPDATED CASH BOOK METHOD
STEP 1:
Carefully tick off those entries with appear in the bank statement and cash book. Any
item which appears in one book but not in the other show be noted, and any error or
unexplained items in the statement should be checked.
STEP 2:
Update the cash book. This is done by entering items which have not appeared in the
firm’s cash book but are on the bank statement. Note that all items on the debit side of the
bank statement but not found in the cash book should be recorded on the credit side of the
cash book. Meanwhile, those items on the credit side of the bank statement but not found
in the cash book should be recorded on the debit side of the cash book. Now balance the
cash. The balance obtain is called the corrected or updated cash book balance.
STEP 3:
Prepare the bank reconciliation statement, using the updated cash book balance and
the unticked items found in the cash book. This is because the bank statement is legal
document and the firm has no right to update it. The easiest way to do this is to begin with
the bank statement balance and add any uncredited cheques and deduct any unpresented
cheques in transit. The balance that result should now be equal to the updated cash book
balance. Alternatively, we can be begin with updated cash book balance, add any
unpresented cheques and deduct any uncredited cheques to arrive at the bank statement
balance
BAMENDA

Other example:
MUPECI Bamenda presents its bank statement and the cash book bank column to you
to prepare an updated cash book and the bank reconciliation statement so as to determine
the exact cash available for the MFI as at 1/8/2017
Bank statement from ECO Bank Bamenda
Date Elements Dr. Cr. Balance

(FCFA) (FCFA) (FCFA)
1/7/2017 Balance difference 5,000,000 O/D
9/7/2017 T Ndeh 120,000 5,120,000 O/D
18/7/2017 Cheque 230,000 4,890,000 O/D
23/7/2017 Agbor 300,000 5,190,000 O/D
28/7/2017 Cheque 450,000 4,740,000 O/D
30/7/2017 Credit transfer- Ngwa 40,000 4,700,000 O/D
31/7/2017 Standing order- pamol 150,000 4,850,000 O/D
31/7/2017 Bank charges 30,000 4,880,000 O/D
CASH BOOK BANK COLUMN JULY 2017
DATE ELEMNET AMOUNT DATE ELEMENT AMOUNT

(FCFA) (FCFA)
17/7 Bella 230,000 1/7 Balance difference 5,000,000
28/7 Che 450,000 7/7 T Ndeh 120,000
31/7 Bella 100,000 9/7 Agbor 300,000
31/7 Joe 90,000 30/7 Ndah 250,000
30/7 Betang 110,000
Solution:
MUPECI Bamenda updated cash book as at 1/8/2017
date Elements Amount date Element Amount

BAMENDA

17/7 Bella 230,000 1/7 Balance difference 5,000,000
28/7 Che 450,000 7/7 T Ndeh 120,000
30/7 Ngwa 40,000 9/7 Agbor 300,000
31/7 Bella 100,000 30/7 Ndah 250,000
31/7 Joe 90,000 30/7 Betang 110,000
31/7 Pamol 150,000
Balance c/d 5,050,000 31/7 Bank charges 30,000
5,960,000 total 5,960,000
Balance b/d 5,050,000
MUPECI Bamenda bank reconciliation statement as at 1/8/2017
Balance as per unadjusted cash book (overdraft)

Add unpresented cheques:
Ndah 250,000
Betang 110,000 360,000
(4,690,000)
Less uncredited cheques:
Bella (100,000)
Joe (90,000) (190,000)
(4,880,000)
 OHADA Approach
Procedure for preparing a bank reconciliation statement
The following steps are required to prepare a bank reconciliation statement:
1. Determine the balance of the bank account (account 521) found in the cash book of
the enterprise at the end of the accounting period and the balance of the enterprise
account kept by the bank from the bank statement prepared by the banker. These
BAMENDA

two balances are never equal at the end of each period. They are therefore the
balances to be reconciled. The balance on the cash book is normally a debit balance
while that on the bank statement is normally a credit balance. However the balances
could change in certain situations of the bank overdraft; giving the cash book a credit
balance and the bank statement a debit balance. Now enter these balances on the
respective columns of the bank reconciliation statement.
2. Examine the entries in the cash book and the bank statement carefully. Tick off
items that appear in both books. Such items do not have any problem with the
reconciliation. The unticked items found in the cash books are either unpresented
cheques (found on the credit side) or uncredited cheques (found on the debit side)
or errors committed by the enterprise. The unticked items in the debit side of the
bank statement are either bank service charges or standing orders or payments made
by the bank on behalf of the enterprise while unticked items on the credit side are
either payments received by the bank form customer of the enterprise or interest
earned by the enterprise or bill receivables collected on behalf of the enterprise.
3. Record all unticked items found in the bank statement under the columns of the cash
book I the bank reconciliation statement and the items unticked in the cash book
under the columns of the bank statement. Note that items found on the credit side of
the bank statement are recorded on the debit side of the cash book and items found
on the debit side of the banks statement are recorded on the credit side if the cash
book.
4. If there are errors, they should be corrected accordingly.
5. Calculate the closing balances of the accounts after adjustment. If all adjustment are
done, the closing balances should be the same but opposite in sense. These balances
are called balances after reconciliation.
6. Calculate the totals of each columns
Format of a bank reconciliation statement
Date Elements 521 Bank account Enterprise’s account

kept by the bank
Dr Cr Dr Cr
Balances to be reconciled A B C D
BAMENDA

Transactions recorded by the XXX XXX
bank but not yet by the
enterprise
Transactions recorded by the XXX XXX
enterprise but not yet by the
bank
Error and oversight XXX XXX XXX XXX
Balances after Reconciliation E F F E
Totals G G H H
How to handle some special cases in the reconciliation statement

1. Opening balances are different:
When the opening balance of the cash book is different form the different form that of the
bank statement, we have to check if the last documents were reconciled. If this is the case,
go through the statements and eliminate or include those items in the bank statement. If the
previous bank reconciliation statement is not available, we can check for transactions
appearing in the bank statement that are not in the cash book but whose amount can
reconcile the initial balances
2. Transaction debited in one account but grouped in the other account
In this case note should be taken of the following items:
a) Agios
b) Encashment of cheques or bills
c) Discounting of bills
d) Domiciliated bills cashed
e) Remittance of cheques and bills
3. Different amounts for the same item:

BAMENDA

Amounts of the same transaction could be different in two account. This is common with
the remittance of bills for discounting or collection where the enterprise records the
nominal value while the bank records the actual value (discountable value). In such cases
only the difference between the two amounts is recorded in the enterprise cash book on the
bank reconciliation statement. Note that the bank statement is a legal document and is
usually considered to be correct. Any adjustment should be done only in the cash book of
the firm.
Illustration:
The following information is provided for MUPECI Bamenda for the month of June 2017
General ledger of account 521
Date Elements Dr Cr
1/6 Opening balance 81,487
2/6 Cheque deposited 37,635
3/6 Cheque No 35744 11,000
5/6 Cheque No 35745 8,336
6/6 Cheque No 35746 50,842
13/6 Cash deposit 100,000
13/6 Cheque No 33744 84,005
14/6 Cheque No 35748 28,100
14/6 Cheque No 35749 24,275
15/6 Bill for collection 365,720
15/6 Cheque No 35750 8,308
16/6 Bill for discount 68,000
23/6 Cheque 200501 164,382
25/6 Transfer from Nsango (customer) 150,000
30/6 Cheque No 35751 90,000
Bank statement for the month of September 2017
Date Elements Dr Cr
1/6 Balance 81,487
BAMENDA

6/6 Cheque No 100304 22,843
6/6 Cheque No 200400 14,792
8/6 Cheque No 35744 11,000
14/6 Cash deposit 100,000
15/6 Cheque No 35746 50,842
17/6 Cheque No 35744 84,005
18/6 Cheque No 35750 8,308
18/6 Bill collected 364,500
18/6 Bill discounted 63,400
23/6 Cheque No 35748 28,100
24/6 Cheque No 28035 123,504
24/6 Transfer from Nsangou 150,000
30/6 Domiciliation due 382,000
30/6 Bank fee 9,830
Present the bank reconciliation statement for the month of September and make the
corresponding adjustments in MUPECI Bamenda’s books
SOLUTION
Preliminary calculations
Determination of balance to be reconciled:
 Cash book balance=967,224-304,866=662,358

 Bank statement balance=920,526-574,085=346,441
Bills for collection=365720-63400=4600
Discounting charges=1220+4600=5820
Bank Reconciliation statement for June for 2017
Particular 521 bank Statement

Dr Cr Dr Cr
Balances to be reconciled 662,358 346,441
BAMENDA

Cheque No 100304 22,843
Cheque No 200400 14,792
Cheque No 28035 123,504
Domiciliation due 382,000
Bank fees 9,830
Agios (discounting charges) 5,820
Cheques deposited 37,635
Cheque No 35745 8,336
Cheque No 35749 24,275
Cheque No 200501 164,382
Cheque No 35751 90,000
Errors or oversight
Balances c/d 425,847 425,847
Totals 823,497 823,497 548,458 548,458
Balances b/d 425,847 425,847
1/06/2017
521 bank 161,139
411 customers and related accounts 161,139
Being cheque No……….
1/06/2017
4021 Suppliers bills payable 382,000
631 bank charges 15,650
521 banks 397,650
Being services for charges

BAMENDA
 Advantages of bank Reconciliation Statement

1. It makes accounts to be in good standing
Keeping your account in good standing through bank reconciliation means that, when you
are aware about the amount you can spend in your account, you are less likely to overdraw
the account, which means withdrawing or attempting to withdraw more money than what
your account have. Keep in mind that overdrawing will negatively affect your credit score
and can prompt the bank to charge you fees while some financial institutions offer overdraft
protection, most often they would charge you or your company a fee for using such a
service. And if you do not have such type of protection on your account, you will suffer
worse consequences
2. It prevents theft
As you are going to compare your bank book’s transactions with the bank’s financial
transactions, you will be able to spot transactions that are recorded by the institution, but
are not in your records. As you can see, recording bank fees is a standard practice as you
process your reconciliation, though it might a transaction that you have overlooked to
record. By examining further the available original documents, these discrepancies will be
revealed. Most importantly, this will reveal bank transactions that were initiated by
unauthorized individuals who try to steal money from the your account
3. It will keep mistakes at bay
You will know that a bank is reliable when it implements procedures to avoid making
mistake in your account, but unfortunately, mistakes do happen sometimes, with the most
common being a simple entry error. Nevertheless, banks will be able to correct these
mistakes when you point them out after you complete your reconciliation.
4. It helps you detect accounting errors
By reconciliation, you will be able to detect accounting errors that commonly occurs in
business, such as double payments, additions and subtraction errors, missed payments and
lost cheques. For example if you mistakenly recorded an invoice as ‘paid’ on your ledger,
BAMENDA

bank reconciliation can reveal that you have forgotten to write the cheque. There are also
cases where your bank committed an error in your favor, so you will be liable to return that
money, even if you have already spent it.
5. It achieves accurate balance
A bank reconciliation will reveal which cash transaction have been cleared with the bank
and which of those are still outstanding. While a cheque is most common form of
transaction that would remain open at the end of the statement if you made a deposit at the
end of the month
 Disadvantages of bank reconciliation statement

1. It can create cheques that clear the bank after being voided
As you may have noticed when making cheque transactions with your
bank, if a cheque has remained “un-cleared” for a long period of time, you might have to
void it and issue one for a replacement. Now, if a payee has cashed the original cheque that
you have voided with the bank, the institution should reject it when the payee presents it.
However, if you failed to void it, then it must be recorded with a credit to your cash account
and a debit that indicates the reason for the payment, such as a decrease in a liability
account, an increase in a cash account or an expense account. In a general sense, you should
void such an un-cleared cheque with the bank at once if the payee has not yet cashed the
replacement cheque, or you will be making a double payment that will require you to
pursue repayment with the payee for the second cheque
2. It can issue un-cleared checks that continue not to be presented
As stated above, a bank reconciliation creates un-cleared checks which are residual checks
that are not presented for payment for a long period of time or are never presented for
payment at all. That is why you should treat them in the listing of un-cleared cheques even
if it is just in a short term, with you keeping them in the listing of un-cleared cheques in
your accounting to make them as ongoing reconciling items. In the long term, you should
ask the payee if he/she ever received the cheque to decide whether you need to void them
and issue new one
3. It risks changes in dates covered by the bank statement

BAMENDA

Another drawback with bank reconciliation that can cause problems is that banks statement
dates can be altered in order to include or exclude some items. This situation can arise
when someone at the company request the bank to change the closing date for your bank
account, which can lead to fraud
4. It make possible that deposited cheques will be returned
In some cases, your bank would refuse to deposit your cheques for reasons like you have
drawn it on a foreign bank account. This means that you need to reverse the original entry
on that deposit, which will become a credit to your cash account to reduce cash balance.
Remember that this comes with a corresponding increase in your accounts receivables.
Means used
This report has been written based qualitative and quantitative information gotten from
both primary and secondary sources of data.
 Primary data
The primary data used by the intern to prepare this report is information gathered from
the branch manager and the staffs in the MFI (MUPECI) through direct questioning
 Secondary data
The secondary data was also used by the intern to explain more the findings, processes
and problems encountered. This was gotten from already written documents by
MUPECI for adverts and the intern also made use of the internet for some research, text
books, dictionaries, already written reports by other students.
BAMENDA
In this chapter we will enumerate the following problems we have

encountered that made it difficult for us to write our report and bring
out the solutions or recommendations to those problems. This chapter is
divided into two sections. Section one will bring forward the critics
while chapter two will be the following recommendations and suggestion to
eliminate those problems.
BAMENDA
Due to the no one is perfect, like any other organization MUPECI is not
free from having drawbacks or critics. We encountered some difficulties
which made it difficult for us to efficiently achieve our objective
 Method of Reconciliation
The MFI uses only one approach of preparing the bank reconciliation statement.
They should also try different approaches like the international accounting standard
approach in preparing the bank reconciliation statement because it’s simpler to
prepare that statement using that method.
 Lack of access to most information
During our internship period we were denied access to most of the documents
or information that we needed. We not even touch the computers we only observing
how they record their bank reconciliation statement after reconciling
 Other Critics
 Lack of customers attention
Sometimes when the intern is carrying out another task may be at the branch
manager’s office and they are many customers at the counter, employees at the
counter will not even give them their attention since they are waiting for intern to
come and attend to them
 Shortage of space
There is shortage of space for interns to sit at the counter. And this made to be
working at the counter turn by turn and this made our learning sometimes not
efficient since some interns were like wanting to be at the counter all the time
 Documents for Adverts
Most of the documents and advertising flyers are mostly made in French
language and customers usually complain. This sometimes made the prospection
not to be easy since they couldn’t understand the flyers.
BAMENDA

 Dispute amongst Worker
Some times during our internship period, employee usually dispute or argue
amongst themselves instead of carrying out their task which are geared at realizing
organizational objectives
Bringing out problems without solutions or recommendations to it is

like this is like planning without forecasting. After analyzing the
problems above, we tried to sort out some possible solutions to amend the
situation so as to improve the efficiency of the organization. In this
regard we brought solutions based on the problem:
 Trying other approaches of Reconciliation

The organization can also try other methods of reconciliation like IAS approach
which is simple to calculate and understand unlike the OHADA approach which is
difficult and takes a lot of time to calculate
 A Certain degree of access to information
The MFI should allow interns to a certain extend access to institution information
so that they can study and carry out their research during the internship period
effectively and efficiently.
 SMS alerts
The enterprise should ask their Banks to always inform them whenever they are
inflows and outflows transactions in their accounts so that this can reduce some of
the causes of BRS. Nowadays its very common banks always notify their client
through SMS or Mails whenever there have been and inflow or outflow of money
in their account.
 Other recommendations
 Produce English flyers and documents
BAMENDA

Since MUPECI Bamenda is in the Anglophone area, they should make and
produce most of their advertisement documents or flyers and other MFI
documents in English for the better understanding of their products to their
customers
 Create more space
The MFI should either create more space or take less interns for internship in the
institution. So they can study efficiently and effectively
 Attend to customers
The staff should always leave what they are doing to attend to customers since
them the MFI will close down and they are the stake holders of the MFI so they
have to be treated with care and attention
 Staff should Avoid conflicts
Employees should always try to minimize conflict as much as possible since
conflicts will come to slow down work to be done and it might distort the
achievement of organizational objectives efficiently
 More Adverts on Media
The MFI should do more adverts on media like TV, Radio, Newspapers and
others medias to increase the population’s awareness about the MFI there by
increasing the MFI customers leading to an increase in their profitability.
BAMENDA
We have come to the end of our report writing on the topic Causes and
preparation of Bank Reconciliation Statement case of MUPECI Bamenda. Our
study was carried out to amalgamate the theory learned in school to the
practical we had while being at MUPECI Bamenda. We brought forward all
the elements relating to BRS, the cause of BRS and how BRS is been prepared
and also another approach of reconciling. The causes, and the fact that
the MFI only used one method of reconciling meanwhile there are other
efficient method led us to the choice of our topic so as to bring out
some critics or problems and bring forth solutions and recommendations.
Our work was gotten from both qualitative and quantitative data. The man objective of this
study was to investigate the causes and preparation of a bank reconciliation statement in
MFI case of MUPECI Bamenda.
Chapter one and two is focused on the history creation and internship activities at MUPECI
Bamenda while chapter three and four elaborate a practical analysis of bank reconciliation
statement and conclusion with problems faced and proposed solutions
From the aforementioned, we can conclude that most of the causes of bank reconciliation
statement or elements that give rise to bank reconciliation statement are not of the doing of
the enterprise nor of the bank they arise as business transactions are being carried out daily.
Therefore this causes can only be minimized but we cannot be completely avoided. The
preparation of the bank reconciliation statement is very important since “bank” constitute
one of the most liquid assets of an enterprise and if the enterprise doesn’t prepare
reconciliation statements, it may run short of liquidity. The MFI has to always put in mind
that Finance is as important as blood is the human system.
BAMENDA
PUBLISHED TEXT BOOKS

 FAI E. B. , (2012), Step by step financial accounting (International and OHADA
systems) volume 2, pages 323
 BATEY P. et all, (2014), The Harmonized Business Accounting (The
Compendium), 2nd Edition, Maryland Printers pages 561
 FRANK WOOD et all, (2005),Business accounting ,10th Edition, Pearson
Education, page 844
 NCHENDEH C. , (2017), OHADA ACCOUNTING PLAN AND FINANCIAL
STATEMENTS, Revised Edition, pages 69
 Websites
 10th January 2018 www.businessdictionary.com
 23rd January 2018 www.financialaccountinginfo.blogspot.com
 7th February 2018 www.investorwords.com
BAMENDA
 Organizational chart (Appendix 1)

 Deposit slip (Appendix 2)
 Standing order (Appendix 3)
 Prospection form (Appendix 4)
BAMENDA
Organizational chart
General Assembly
Control Administrative advice

committee
Credit Human resource
committee committee
General Manager
Assistant General Manager
Accounting Credit Marketing Recovery Human

Control Database Project
dept dept dept dept resource
dept dept
dept
dept
Regional
magt
Regional Regional project
control dept
Branch Manager
Head of operations
Counter
Tellers
BAMENDA

Report On Bank Reconciliation

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CAUSES AND PREPARATION OF BANK RECONCILIATION

STATEMENT IN A MICRO FINANCE INSTITUTION CASE OF MUPECI

WRITTEN AND PRESENTED BY MEKEM KENNE PEREZ i

Mr. NDOH DIVINE

Mr. TOYON MEFACK DORGELESSE DUCLAIR

WRITTEN AND PRESENTED BY MEKEM KENNE PEREZ ii

WRITTEN AND PRESENTED BY MEKEM KENNE PEREZ iii

The realization of this piece of work is as a result of contributions, suggestions,

I would like to thank the proprietor of HIGHER INSTITUTE OF TERTIARY AND

My sincere appreciation goes to all lecturers of the Anglophone section of ISTTI

Special thanks go to the Branch Manager of MUPECI Bamenda Mr. TAYON

WRITTEN AND PRESENTED BY MEKEM KENNE PEREZ iv

MUPECI Bamenda (Mutuelle pour la promotion de l’épargne et du crédit

WRITTEN AND PRESENTED BY MEKEM KENNE PEREZ v

MUPECI Bamenda (Mutuelle pour la promotion de l'épargne et du crédit d'investissement)

WRITTEN AND PRESENTED BY MEKEM KENNE PEREZ vi

No.014/0402/MINESUP/SG/DDES brought about the creation of INSTITUT

WRITTEN AND PRESENTED BY MEKEM KENNE PEREZ vii

MUPECI Mutuelle pour la promotion de l’épargne et du crédit

CAMCCUL Cameroon Co-operative credit union league

ISTTI INSTITUT SUPERIEUR DES TECHNIQUES TERTIAIRES ET

OHADA Organisation pour L’harmonisation des droits de d’affaire

IAS International Accounting Standard

CEMAC Communauté économique et monétaire de l’Afrique centrale

BEAC Banque des états de l’Afrique centrale

COBAC Commission bancaire de l’Afrique Centrale

CFA Communauté Financière Africaine

MINIFI ministère des finances

MFIs Microfinance institutions viii

WRITTEN AND PRESENTED BY MEKEM KENNE PEREZ ix

WRITTEN AND PRESENTED BY MEKEM KENNE PEREZ 1

In every organization, finance is as important as blood in the human system. Bank or

A bank reconciliation statement is a summary of banking and business activity that

WRITTEN AND PRESENTED BY MEKEM KENNE PEREZ 2

 Objectives of studying Bank Reconciliation Statement

WRITTEN AND PRESENTED BY MEKEM KENNE PEREZ 3

PART ONE: The internship environment

Chapter one: Presentation of the MFI (MUPECI)

Section one: history, creation and evolution

Section two: Organization and operations

Chapter two: Evolution of internship activities

Section one: Reception and presentation of the host department

Section two: Effective internship activities

PART TWO: The field work

Chapter Three: causes and preparation of a bank reconciliation statement

Section one: concept and causes of bank reconciliation statement

Section two: preparation of bank reconciliation statement

Chapter four: Criticisms and Recommendations

Section one: Criticisms

Section two: Recommendations

WRITTEN AND PRESENTED BY MEKEM KENNE PEREZ 4

WRITTEN AND PRESENTED BY MEKEM KENNE PEREZ 5

WRITTEN AND PRESENTED BY MEKEM KENNE PEREZ 6

1. Compliance with commitments with the collection and securing of members

WRITTEN AND PRESENTED BY MEKEM KENNE PEREZ 7

WRITTEN AND PRESENTED BY MEKEM KENNE PEREZ 8

Company name Mutuelle pour la Promotion de l’Epargne

Head office Rue Gallieni Akwa-Douala

Special regime Private Enterprise

Tax Payer No M050300015527X

Post office box 477 Bamenda

Tax system Real regime