A little confused about what to do for a bank reconciliation when the only adjustments required are outstanding lodgements and unrepresented cheques (i.e only bank statement adjustments required).
Most bank reconciliation statements entail that you have the bank statement amount at the top of the grid, then you add and subtract as necessary which leads you to what would usually be an adjusted cash book balance; but say on a rare occasion there are no payments and receipts on the bank statement that are not recorded in the cash book what happens?
Do you have to take the difference off the cash book balance , do you have to reverse the bank statement balance and the cash statement balance so the cash statement balance is at the top of the grid.
Apologies if I'm being stupid, and thanks in advance for any help.
Usually if there are no outstanding payments or receipts then the bank statement balance will equal the cash book balance, end of story.
No reversing of anything necessary Some people start with the cash book balance and end up with the bank statement balance and some start with the bank statement balance and end up with the cash book balance. Entirely up to you.
Some people start with the cash book balance and end up with the bank statement balance and some start with the bank statement balance and end up with the cash book balance. Entirely up to you.
