Example of Bank Reconciliation Questions

This time we will share a discussion about examples of reconciliation questions and also the answers. Happy reading ..

 

Table of contents :

Definition of a bank reconciliation

The following is an example of a bank reconciliation question and also the answer:

Bank Reconciliation Function

Purpose of Bank Reconciliation

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Definition of a bank reconciliation

Bank reconciliation is a form of control over cash in the Bank with periodic company cash records that serve as a comparison, the party from the bank sends a cash report containing all deposit transactions during a certain period.

 

Reconciliation is carried out to show the differences between cash records according to the Bank and the company.

 

When such differences result from transactions that have not been recorded by the bank, the peer company records are deemed correct. If the difference is the result of the error, an adjustment should be made.

 

Some of the documents needed to make a bank reconciliation:

 

Cash receipts journal : to record financial transactions and can add balances.

Cash disbursements journal : to record all cash disbursements from all types of transactions.

Current account : summary of transactions that have occurred in a certain period

Proof of deposit to the Bank : proof of customer transactions when making a deposit to the bank.

Proof of cash receipts and disbursements : evidence made by the company.

As in the previous discussion regarding how to make a bank reconciliation, cash is an important element in a company, because it plays an important role in supporting the company’s sustainability.

 

So that it takes good records in recording cash in order to obtain a cash report that shows the actual cash balance.

 

The company will keep a portion of the company’s cash in the bank and it is necessary to reconcile cash balances between the bank and the company.

 

The purpose of preparing a bank reconciliation report is to determine the difference in cash balances from the bank statements with different cash balances in the company’s books.

 

To find out what are the reasons for the difference in cash balances in bank and company records and how we can find out the same cash balance.

 

In this case the true cash balance results from differences in cash balances that occur due to differences in notes between the bank and company records.

 

Also Read:   Accountant Professional Code of Ethics

Example of Bank Reconciliation Questions

 

The following is an example of a bank reconciliation question and also the answer:

  1. PT Surla Profit keeps its funds in Bank AA. In early February 2017, upon receiving a checking account from bank AA, PT Surla Profit’s accountant saw the difference between the cash balance in the bank according to its notes and the cash balance according to the checking account.

 

According to his records, the cash balance at the end of January 2017 was IDR 45,500.00, while according to AA’s bank statement it was IDR 54,400,000.

 

After checking again, the company’s accountant found some additional information related to the difference in balances, namely:

 

Cash deposit to the bank on January 31, 2017 amounting to Rp 15,200,000 has not been recorded by the bank.

The PT Surla Profit bill to PT BB amounting to Rp.9,600,000 made by Bank AA has been successful and PT Surla Profit does not know yet.

PT Surla Profit has not recorded bank interest income of Rp. 1,200,000.

PT Surla Profit has not recorded a bank administration expense of Rp. 300,000.

The check that PT Surla Profit received on January 25 from PT Maju for Rp. 4,000,000 turned out to be no funds.

The check that was issued by PT Surla Profit at the end of last January amounting to Rp.13,600,000 was apparently not disbursed by the holder.

The check amounting to Rp.7,500,000 that PT Surla Profit received from PT Mundur as a receivable payment in January, was recorded by the PT Surla Profit accountant for Rp 2,500,000.

The check for Rp. 3,500,000 issued by PT Surla Profit in the middle of last January to pay for vehicle repair expenses, by the company’s accountant was recorded at Rp. 2,500,000.

Asked: make a PT Surla Profit bank reconciliation!

 

PT Surla Profit’s bank reconciliation

 

The correct balance according to both the company and the bank is IDR 56,000,000 and once the correct balance is known, an adjusting journal must be made based on the above calculations. To make an adjusting journal, it is enough to pay attention to the company side.

 

Also Read:   The Accounting Cycle

  1. On July 1, 2016, the bank estimate in the PT.DEBET ledger shows a balance of Rp. 2,303,000. In July 2016 the cash receipts book showed an amount of Rp. 4,730,000.

 

But the cash disbursement book shows an amount of IDR 6,572,725. Data relating to bank reconciliation include the following:

 

Circulating Checks:

Already on credit by the Bank, gito service in July 2016 was valued at IDR 7,425

Check number 10203 worth IDR 157,000 is recorded in the expense book report worth IDR 175,000

Meanwhile, for check number 10217, worth IDR 240,000, it is recorded at IDR 24,000. everything for the purchase of merchandise.

And cash deposits of Rp. 925,000 as of July 31, 2016 have not been recorded in the bank statement, because the cash has been closed.

The bank has already charged an administration fee in July 2016 amounting to IDR 1,000 and a checkbook fee of IDR 650. This amount has not been recorded by PT. DEBET.

The bank has already credited the PT.DEBET account for the remittance of Rp. 199,950 which was obtained from the customer to pay off the debt.

The check deposit obtained from PT. DEBET amounting to Rp. 120,000 on July 28, 2016 was rejected because the balance was insufficient.

Requested:

 

Make a bank reconciliation as of July 31, 2016 to adjust the balance according to the bank account with the balance based on the bank estimate

Keep any adjusting entries as needed

The following is the reconciliation report:

 

reconciliation pt debit

 

The following is the Adapted Journal

 

reconciliation of adjusting entries

 

  1. Bank TRIO account balance in the ledger of PT. Martech on July 31, 2016 showed a total of IDR 185,500. The balance based on the bank statement on that date is IDR 207,000. After the examination, the cause of the difference is due to the following:

 

The bank admission fee in July 2006, amounting to Rp. 2,800 in the bank statement has not been recorded by the company because the debit note has not arrived.

Five checks totaling Rp 40,750 that have been paid to the supplier to pay off the debt have not actually been cashed

Checks drawn by PT. ANDI, amounting to Rp. 15,000, was wrongly booked by the bank into PT Martech’s account. For debt repayment, remittances from subscribers via bank transfet of Rp. 3,950 have not been recorded in the company’s books.

Check SR 5220 number of IDR 70,550 recorded in the books of PT. Martech with a total of IDR 65,150

Also Read:   Financial Ratio Analysis

Requested:

 

Make a bank reconciliation for PT. Martech on July 31, 2006

PT Martech Reconciliation

 

Bank Reconciliation Function

The functions of a bank reconciliation are as follows:

 

Reconciliation is carried out to reveal and irregularities in the company’s records in the bank.

The reconciliation procedure is carried out to find out the reasons for the discrepancy between the balance in the bank and the company.

Reconciliation is useful for checking the accuracy of records in cash accounts and bank records.

Reconciliation is useful for knowing receipts and expenses that have occurred in the bank but have not been recorded by the company.

Purpose of Bank Reconciliation

Purpose of Bank Reconciliation (cash & bank receipts):

 

By checking whether there is sufficient internal control over cash and banks as well as cash and bank receipts and disbursements transactions.

Check and supervise whether the cash and bank balances that are in the balance sheet really exist and the company has them.

Check if there is a restriction for cash and bank balance users.

Check if cash and bank balances appear in foreign currencies, whether or not converted into rupiah against the BI middle rate on balance sheet date, whether the difference in exchange rates has been charged or credited for the loss of the study year.

Checking whether the presentation on the balance sheet is in accordance with accounting principles that are not yet generally accepted.

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