Is there some sort of approach that I should follow when doing bank and cash book reconciliations.....Questions like the one below completely confuses me....
The following information relates to a bank reconciliation.
1. the bank balance in the cashbook before taking the items below into account was $8979 overdrawn
2. bank charges of $550 on the bank statement have not been entered in the cashbook
3. the bank has credited the account in error with $425 which belongs to another customer
4. cheque payments totalling $3275 have been entered in the cashbook but have not been presented for payment
5. cheques totalling $5380 have been correctly entered on the debit side of the cashbook but have not been paid in the bank.
What was the balance as shown by the bank statement before taking the above items into account.
This is just an example....how shall I approach these sort of questions.
