(a) What is a Bank Reconciliation Statement? (b) Explain the following terms: (i) Bank Charges (ii) Standing order (iii) Credit Transfer (iv) Dishonoured Cheque (v) Unpresented cheque (vi) Uncredited cheque
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Correct Answer: Option
Explanation:
(a) Bank reconciliation Statement: -A bank reconciliation statement is a statement prepared by an account 4 holder; -It is prepared to bring the cash book balance (bank column) into agreement with the bank statement balance on a given date.
(b)(i) Bank Charges: These are amounts charged and debited to the customer's bank account;-They are for services rendered by the bank to its customers. (ii) Standing Order:-It is a written instruction to a bank by an account holder; -It authorizes the bank to make specific payments to named persons on specified dates.(iii) Credit Transfer: -It is an agreement between a firm and its customer; -The customer arranges with his bank to transfer an amount directly into the firm's bank account. (iv) Dishonoured Cheques: -These are cheques received from debtors and paid into the bank account; -These cheques were returned unpaid by the bank for various reasons. (v) Unpresented Cheques: -These are cheques issued by a firm to its creditors; -These cheques have not been presented to the bank for payment at the time the bank statement was prepared. (vi) Uncredited Cheques: -These are cheques received from customers and paid into the business bank account. these cheques have not been credited by the bank at the time the bank statement was prepared.
(a) Bank reconciliation Statement: -A bank reconciliation statement is a statement prepared by an account 4 holder; -It is prepared to bring the cash book balance (bank column) into agreement with the bank statement balance on a given date.
(b)(i) Bank Charges: These are amounts charged and debited to the customer's bank account;-They are for services rendered by the bank to its customers. (ii) Standing Order:-It is a written instruction to a bank by an account holder; -It authorizes the bank to make specific payments to named persons on specified dates.(iii) Credit Transfer: -It is an agreement between a firm and its customer; -The customer arranges with his bank to transfer an amount directly into the firm's bank account. (iv) Dishonoured Cheques: -These are cheques received from debtors and paid into the bank account; -These cheques were returned unpaid by the bank for various reasons. (v) Unpresented Cheques: -These are cheques issued by a firm to its creditors; -These cheques have not been presented to the bank for payment at the time the bank statement was prepared. (vi) Uncredited Cheques: -These are cheques received from customers and paid into the business bank account. these cheques have not been credited by the bank at the time the bank statement was prepared.