Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Source Documents:Bank Statement
- It is a document or report released (on a fixed date every month) by banks
- It lists:
- The balance at the beginning of the period
- deposits,
- withdrawals,
- checks paid,
- interest earned,
- service charges
- penalties incurred if any
- The balance at the end of the period
- on a given account
- It shows the cumulative effect of these transactions the account’s balance,
- up to the date the report was prepared
- Traditionally bank statements are sent out by banks to customers at the end of each month
- With the rise in the use of electronic banking, bank statements are often send out as electronic documents
- If required a bank statement can still be obtained as hard copy although banks charge a fee for the privilege
- Also with the rise in usage of online banking bank statements can be obtained at any moment and not just when the month end
- In accounting bank statements are an important source of information
- They are used in preparing bank reconciliation statements
- And verifying that certain debtors have settled their outstanding balances
- Bank statements are also used to verify that payment to certain creditors went through
To access more topics go to the Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes.