Preparation of bank reconciliation statement without adjusting cash book balance

Harsha Lal- ACW Accounts at edumarz

Ans- The steps to prepare the bank reconciliation statement is:- Firstly we need to have a bank balance as per cash book and a bank statement on a certain date along with all the details.

If there is a favorable balance then the format is:-

Bank Reconciliation Statement as on 31st December 2021

Particulars

Amount

Add:

Less:

Balance as per Cash book

Cheques issued but yet not presented for payment

Interest not recorded by the bank

Bank charges not recorded

Any error in cash book/ bank statement which increases the balance as per bank statement

Cheques deposited but yet not credited by the bank

Cheque dishonored but not entered in cash book

Wrong debit by bank

Any error in cash book/ bank statement which decreases the balance as per bank statement

Balance as per the pass book

………

If there is an unfavorable balance as per the cash book at the starting of the statement then , the whole procedure will be reversed. This means that all the items that are added will now be subtracted and items which are subtracted will need to be added.