bank reconciliation statement and bank entries?



I just started studying accountancy.I am a maths graduate and don hav any accounting basics.now i am studying bank reconciliation.But in the text they gave the format.but i cant understand the banking entries like check issued but not paid,issued not presented,check paid not cleared ,
such things.
i am studying finalaccounts only to get a job.But to study, bank reconciliation ,is it necessary to study banking?
If no need can you explain the meaning and entries for the terms like paid ,issued,cleared,not presented ,both in pass book and cash book.
then can i study bank reconciliation easily?

6 Replies to “bank reconciliation statement and bank entries?”

  1. statement if for any bank account for information of accounts holder whereas the bank reconcilation statement is to tally the monthly transactions in current accounts which is pasted in accounts book for audit purposes.


  2. according to me the bank reconcilation is just verify / check with your bank pass book / statement that what ever you have transacted that entries are reflected in bank statements. if not the missing entries may be reversed and arrive the balance as per bank book. and take corrective action with bank. you can study bank reconcilation easily with the help of accountancy professors. I hope my answer will solve your problem.


  3. I can simplify,- what is Bank Reconciliation ?
    It is nothing but reconciliation of two balances of a Bank Account appeared as Closing Balance as on closing date of a particular period of accounting. There are two balances appeared for the same Account. One balance is certified by the Bank as per their Statement another balance appeared in the Cash/ Bank Book of the A/c holder.
    Reconciling all the entries in both , you can prepare your reconciliation statement. You have to take the closing Balance of your Bank Book ( if there is a cr. B/L ) first and add all the deposit entries not yet credited by bank ( cheques deposited but yet to credit by the bank ).
    Similarly, deduct all the payment entries as cheques issued but not yet presented to bank.
    Finally, you will get the Balance as per your Bank Book. Same thing you can do in a reversed way, taking your closing balance of cash/Bank Book first and reach the closing balance as per bank Statement or Pass Book.


  4. The words “paid” and “issued” have the same meaning. For example, a cheque has been sent, by post, in payment for products or services supplied.

    A cheque is “cleared” after your bank has confirmed that there is sufficient money in your account to pay out the cheque.

    An unpresented cheque is one that has not been sent to your bank for payment. For example, you send a cheque to A Ltd in payment for a service provided by A Ltd. A Ltd deposits the cheque in their bank. Their bank has to send the cheque to your bank for payment. An unpresented cheque is a cheque that has been issued but has not been sent to your bank for payment.

    Good luck.


  5. Bank reconciliation is matching your statement with bank for example you have a statement from bank that u have 400 closing balance and your General ledger bank entry shows that you have 800 so you match the banks statement with and always it happen because of un presented cheques or outstanding deposit that you have send to bank but they still havn”t fund it if you know what i mean bro i just started bank reconcilliation today in College lol






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