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A cheque of Rs 800 drawn into saving deposit account has been shown as drawn into current account Effect on bank reconciliation statement when balance as per cash book is given?
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A cheque of Rs 800 drawn into saving deposit account has been shown as...
Bank Reconciliation Statement for Cheque drawn into wrong account
When a cheque of Rs 800 is drawn into a savings deposit account, but it is shown as drawn into a current account, it will create a discrepancy in the bank reconciliation statement. The bank reconciliation statement is a document used to compare the bank statement with the cash book of the company. It helps to identify any discrepancies and to reconcile the differences between the two.
Impact on Bank Reconciliation Statement
The following are the impacts on the bank reconciliation statement when a cheque of Rs 800 is drawn into the wrong account:
1. Unmatched Transactions: The transaction will appear in the bank statement of the current account but not in the cash book of the savings deposit account. This will lead to an unmatched transaction.
2. Wrong Balance: The balance as per bank statement will differ from the balance as per cash book due to the transaction being recorded in the wrong account.
3. Error in Recording: The transaction will be recorded in the wrong account which will result in an error in recording.
4. Adjustments Required: Adjustments will be required to reconcile the differences between the bank statement and the cash book.
Steps to rectify the error
The following steps can be taken to rectify the error:
1. Contact the Bank: Contact the bank and inform them about the error. Request them to transfer the funds from the current account to the savings deposit account.
2. Record the Adjustment: Once the funds are transferred, record the adjustment in the cash book of the savings deposit account.
3. Update the Bank Reconciliation Statement: Update the bank reconciliation statement with the adjusted balance.
Conclusion
A cheque of Rs 800 drawn into the wrong account will create discrepancies in the bank reconciliation statement. It is important to identify and rectify such errors to ensure that the financial records are accurate. By following the steps mentioned above, the error can be rectified and the bank reconciliation statement can be reconciled.
When a cheque of Rs 800 is drawn into a savings deposit account, but it is shown as drawn into a current account, it will create a discrepancy in the bank reconciliation statement. The bank reconciliation statement is a document used to compare the bank statement with the cash book of the company. It helps to identify any discrepancies and to reconcile the differences between the two.
Impact on Bank Reconciliation Statement
The following are the impacts on the bank reconciliation statement when a cheque of Rs 800 is drawn into the wrong account:
1. Unmatched Transactions: The transaction will appear in the bank statement of the current account but not in the cash book of the savings deposit account. This will lead to an unmatched transaction.
2. Wrong Balance: The balance as per bank statement will differ from the balance as per cash book due to the transaction being recorded in the wrong account.
3. Error in Recording: The transaction will be recorded in the wrong account which will result in an error in recording.
4. Adjustments Required: Adjustments will be required to reconcile the differences between the bank statement and the cash book.
Steps to rectify the error
The following steps can be taken to rectify the error:
1. Contact the Bank: Contact the bank and inform them about the error. Request them to transfer the funds from the current account to the savings deposit account.
2. Record the Adjustment: Once the funds are transferred, record the adjustment in the cash book of the savings deposit account.
3. Update the Bank Reconciliation Statement: Update the bank reconciliation statement with the adjusted balance.
Conclusion
A cheque of Rs 800 drawn into the wrong account will create discrepancies in the bank reconciliation statement. It is important to identify and rectify such errors to ensure that the financial records are accurate. By following the steps mentioned above, the error can be rectified and the bank reconciliation statement can be reconciled.
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A cheque of Rs 800 drawn into saving deposit account has been shown as drawn into current account Effect on bank reconciliation statement when balance as per cash book is given?
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A cheque of Rs 800 drawn into saving deposit account has been shown as drawn into current account Effect on bank reconciliation statement when balance as per cash book is given? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A cheque of Rs 800 drawn into saving deposit account has been shown as drawn into current account Effect on bank reconciliation statement when balance as per cash book is given? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A cheque of Rs 800 drawn into saving deposit account has been shown as drawn into current account Effect on bank reconciliation statement when balance as per cash book is given?.
A cheque of Rs 800 drawn into saving deposit account has been shown as drawn into current account Effect on bank reconciliation statement when balance as per cash book is given? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A cheque of Rs 800 drawn into saving deposit account has been shown as drawn into current account Effect on bank reconciliation statement when balance as per cash book is given? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A cheque of Rs 800 drawn into saving deposit account has been shown as drawn into current account Effect on bank reconciliation statement when balance as per cash book is given?.
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