Bank Reconciliation (Compromise) Statements

1 Cheque Issued but not presented (cleared)

2 Cheque Deposited butr not Credited (cleared)
3 Bank Charges
4 Direct Debit
5 Direct Credited
6 Mistakes

Practical sample

Bank A/c as in Ledger (Part of the Ledger)

Debit Side (Receipts) Credit Side(Payments)
Date Details Amt Date Details Amt
1/Jan/05 Cash 5,000.00 15/Jan/05 Rent (Chq No 1) 3,100.00
10/Jan/05 Mr John 3,000.00 28/Jan/05 Electricity (Chq No. 2) 600.00
20/Jan/05 Mr Brown 2,700.00 29/Jan/05 Electricity (Chq No. 3) 200.00
30/Jan/05 Telephone (Chq No. 4) 150.00
Balance c/d 6,650.00
10,700.00 10,700.00
Balance c/d 6,650.00
31/Jan/05 Direct Credit (Mr Lee) 700 31/Jan/05 Bank Charges 30.00
Balance c/d 7,320.00
7,350.00 7,350.00
Balance c/d 7,320.00

Bank Statement For JAN-05

Date Descrebtion Debit Credit Balance
1/Jan/05 Cash 5,000.00 5,000.00
11/Jan/05 Mr John 3,000.00 8,000.00
22/Jan/05 Chq No. 1 3,100.00 4,900.00
29/Jan/05 Chq No. 3 200.00 4,700.00
31/Jan/05 Direct Credit (Mr Lee) 700.00 5,400.00
31/Jan/04 Bank Charges 30.00 5,370.00

Thinks to do (Before Preparing the Bank Reconciliation)

1 Cross Check the Enteries
2 Correct the A/c (update it with the new entries)
3 Prepare the Bank renconciliation statement
 Bank Reconciliation
Banlance as Per Bank A/c 7,320.00
ADD (Chq Issued but not presented)
Chq No.2 600
Chq No.4 150 750.00
6,570.00
LESS (Chq deposit but not Cleared)
Mr Brown 2,700.00 IS THE AMT WHICH IS SHOWN
5,370.00 AS BALANCE IN THE BANK
STATEMENT