Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Bank Reconciliation Statement Example

  • As discussed here preparing a bank reconciliation statement involves three steps:
    1. Obtaining the current bank statement
    2. Updating the Cash Book
    3. Preparing the Bank reconciliation statement
  • Now we will look at an example:

Draw up a bank reconciliation statement, after writing the cash book up to date, ascertaining the balance on the bank statement, from the following as on 31 March 20X9:

Cash at bank as per bank column of the cash book (Dr)2740
Bankings made but not yet entered on bank statement410
Bank charges on bank statement but not yet in cash book32
Unpresented cheques W Mawoyo131
Standing order to DSTV Ltd entered on bank statement, but not in cash book93
Credit transfer from B Badza entered on bank statement, but not yet in cash book201

Solution

  • First we need to updated the Cash Book
Cash Book
31 MarchBalance b/d274031 MarchBank Charges32
31 MarchB Badza20131 MarchDSTV Ltd93
31 MarchBalance c/d2816

2941

2941
  • Now that we have an updated balance we prepare the reconciliation statement
Bank Reconciliation Statement as at 31 March
Balance as per Cash Book2816
Add unpresented cheques: W Mawoyo


131
2947
Less uncredited lodgements(410)
Balance as per bank statement

2537
  • If everything in our books is accurate we would expect the bank statement to show this balance

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