A recommendation in a project report is a suggestion or advice for a specific action or decision. The purpose of a recommendation report is to compare options and recommend the best one for solving a problem or filling a need. The credit officer of a bank would consider all the information provided by you in…
The balance of a cash book and a passbook can differ for several reasons, including: Timing: Bank transactions are recorded in the customer’s account in real time. Therefore, the date a transaction is recorded in the cash book may be different from the date it is recorded in the passbook. Cheques: Interest payment: Interest on…
Reconciliation is an accounting procedure that compares two sets of records to check that the figures are correct and in agreement. The process of reconciliation ensures the accuracy and validity of financial information. A proper reconciliation process ensures that unauthorized changes have not occurred to transactions during processing. Types of Reconciliations There are two types…
The adjusted cash balance is calculated by taking the ending cash balance from the bank statement and adding any outstanding deposits while deducting outstanding cheques. The adjusted cash balance formula is: Adjusted Cash Balance = Ending Bank Statement Balance + Outstanding Deposits – Outstanding Cheques. To adjust a cash book balance, you can follow these…
The process of reconciliation ensures the accuracy and validity of financial information. Also, a proper reconciliation process ensures that unauthorized changes have not occurred to transactions during processing. Bank account reconciliation can be manually carried out at a periodic interval when extracts of the Cash Book and updated Pass Book/bank statement are readily available. The…
Reconciliation is the process of comparing transactions that have been recorded internally against monthly statements from external sources like banks to see if there are differences in the records and to correct any discrepancies. Further, reconciliation involves resolving any discrepancies that may have been discovered. Need for the reconciliation: Companies perform bank reconciliation to ensure…
No, a passbook is not a mirror image of a cash book. Though passbooks and cash books provide related financial information, they are not mirror images of each other. As the name says, cash transactions related to cash received or payments made by an organization are only recorded in a Cash Book. This could include…
A Bank Pass Book refers to a Savings account Pass Book. It is issued by banks for a running or operating bank account. But practically, Pass Book is used to be issued for Current Account for limited transaction accounts, Recurring Deposit Account, Small loan accounts. The transactions appearing on a passbook is a conclusive evidence…
As the name says, cash transactions related to cash received or payments made by an organization are only recorded in a Cash Book. This could include money that is received, paid out, and even deposited into or withdrawn from a bank account. All transactions in a cash book have two sides, debit and credit. All…
A business transaction is first recorded in a journal, also called a Book of Original Entry. Journalising is the process of recording a business’s financial transactions in a journal. The transactions entered in a Journal are the basis for posting to ledgers. Journal entries are also used for cross-checking when the ledger balance is not…