OCKOURI BARNES

BANK RECONCILIATION ASSIGNMENT

POOL 3 ACCOUNTING

1. With the aid of three relevant examples, outline two reasons why the preparation of the bank
reconciliation on a regular basis is important for all businesses.

A. The main purpose of the bank reconciliation statement is basically that it is a type of
control system that is used to compare the bank balance shown in an organization bank
statements and its bank balance in its cashbook.

B. The bank recon statement is also used to explain differences in figures that are
represented in the cashbook but not in the bank statement.

C. Cashbook Errors: These are errors which were made in the course of writing up the
cashbook since these errors would have affected the balance shown by the original
cashbook they should be corrected while the cashbook is being adjusted.

2. Prepare the corrected bank T account for the month of April 2010.
2010 UPDATED CASHBOOK
$ $
Apr 1 Balance b\f 5820 Apr 6 Standing Order 890
Apr 20 Credit Transfer 11,550 Apr 25 Direct Debit 410
17370 Apr 27 Dishonored Cheque 1250
Apr 30 Bank Charges & Interest 192
2742
Balance b\d 2742 Balance b\d 14,628
3. Prepare a bank reconciliation Statement as at 30 April 2010.

Bank Reconciliation Statement As At April 30, 2010

$
Balance As Per Cashbook 2742

Add Unpresented Cheques:

Cheque 71 5420
Cheque 72 310
Cheque 77 56
Cheque 78 174
5960
8702

Less Late Lodgement:

Lodgement 1 8750
Lodgement 2 10,840
Lodgement 3 9875
Lodgement 4 1,250 30715

Balance As Per Bank Statement 22013