BANK RECONCILIATION STATEMENT FOR THE LAYMAN
Book Details
Author(s)FREDERICK ERMIN PETER BROWN
ISBN / ASINB01AO9VU28
ISBN-13978B01AO9VU24
Sales Rank1,202,965
MarketplaceUnited States 🇺🇸
Description
DEFENDING BANK RECONCILIATION STATEMENT FOR THE LAY MAN
INTRODUCTION
Bank reconciliation statement is a topic that confuses students and therefore find it difficult to understand. I have therefore simplified it from the point of view of the layman so that it would be easier to understand.
1. BANKING RECORDS
I have avoided the use of technical terms like the cash book which in fact implies the bank columns of the cash book, i.e. the receipts and payments sides, the receipts side representing payments of cash and cheques into the Bank by the customer and the payments side representing payments by the Bank of cheques issued by the customer and cash withdrawals.
In fact the receipts and payments sides of the bank columns represent the banking records of the customer and in my view a more direct approach is to use the term banking records to enable the student to understand quickly that it is the banking records of the customer that is being dealt with.
I have therefore shown a simple banking record with the receipts and payments sections. The receipts section consisting of payments into the Bank of cash and cheques by the customer and the payments section consisting of payments by the bank of cheques issued by the customer and cash withdrawals and the difference being the balance of the customer at the Bank. A favourable balance where the total of the receipts side is more than the total of the payments side and an overdraft where the total of the payments side is more than the total of the receipts side.
Banking records is a more direct approach because it is what is being dealt with and need to be mentioned rather than mentioning the cash book which involves cash and bank columns and which may confuse some students.
2. CORRECTION OF THE CUSTOMER’S BANKING RECORDS
In my view the adjusted cash book is a technical term which sometimes confuses the student. I have therefore used the term correction of the banking records as stated above which is a more direct approach to the correction of his banking records, i.e. the balance according to his banking records as calculated above and the omission of items like credit transfers, bank interest credit etc. which are added and standing orders, bank interest charges, dishonoured cheques etc. which are deducted.
3. BALANCE AS PER CUSTOMERS RECORDS
In the bank reconciliation statement which corrects the bank statement balance I have used the term balance as per the customer’s records instead of balance as per adjusted cash book because balance as per the customer’s banking records is a more direct approach related to the correct balance of the customer’s banking records, which is simpler and easier to understand.
CONCLUSION
It can be seen that my approach is more direct and simpler which would enable students and the layman to understand easily.
FREDERICK E. P. BROWN
AUTHOR.
INTRODUCTION
Bank reconciliation statement is a topic that confuses students and therefore find it difficult to understand. I have therefore simplified it from the point of view of the layman so that it would be easier to understand.
1. BANKING RECORDS
I have avoided the use of technical terms like the cash book which in fact implies the bank columns of the cash book, i.e. the receipts and payments sides, the receipts side representing payments of cash and cheques into the Bank by the customer and the payments side representing payments by the Bank of cheques issued by the customer and cash withdrawals.
In fact the receipts and payments sides of the bank columns represent the banking records of the customer and in my view a more direct approach is to use the term banking records to enable the student to understand quickly that it is the banking records of the customer that is being dealt with.
I have therefore shown a simple banking record with the receipts and payments sections. The receipts section consisting of payments into the Bank of cash and cheques by the customer and the payments section consisting of payments by the bank of cheques issued by the customer and cash withdrawals and the difference being the balance of the customer at the Bank. A favourable balance where the total of the receipts side is more than the total of the payments side and an overdraft where the total of the payments side is more than the total of the receipts side.
Banking records is a more direct approach because it is what is being dealt with and need to be mentioned rather than mentioning the cash book which involves cash and bank columns and which may confuse some students.
2. CORRECTION OF THE CUSTOMER’S BANKING RECORDS
In my view the adjusted cash book is a technical term which sometimes confuses the student. I have therefore used the term correction of the banking records as stated above which is a more direct approach to the correction of his banking records, i.e. the balance according to his banking records as calculated above and the omission of items like credit transfers, bank interest credit etc. which are added and standing orders, bank interest charges, dishonoured cheques etc. which are deducted.
3. BALANCE AS PER CUSTOMERS RECORDS
In the bank reconciliation statement which corrects the bank statement balance I have used the term balance as per the customer’s records instead of balance as per adjusted cash book because balance as per the customer’s banking records is a more direct approach related to the correct balance of the customer’s banking records, which is simpler and easier to understand.
CONCLUSION
It can be seen that my approach is more direct and simpler which would enable students and the layman to understand easily.
FREDERICK E. P. BROWN
AUTHOR.
