Accounting


Accounting Forum

AccountingCoach.com is the world's largest free online accounting course.


Not signed in (Sign In)

Categories

Vanilla 1.1.7 is a product of Lussumo. More Information: Documentation, Community Support.

Welcome Guest!
Want to take part in these discussions? If you have an account, sign in now.
If you don't have an account, apply for one now.

General Accounting Discussions: [Sink] bank reconciliation statements

Bottom of Page

1 to 5 of 5

  1.  
    • CommentAuthorhenry
    • CommentTimeDec 1st 2007
     
    There is this question that says that "a check of $245,000 drwan by the firm had benn charged by the bank in error to another firm's a/c"; How do we treat this transaction?
  2.  
    i am enable to understand your question
  3.  
    You do not need to pass any entry in your books instead just notify the bank to rectify the error in their books.
    • CommentAuthorlee
    • CommentTimeFeb 11th 2008
     
    if you start with the bank statement balance in preparing your bank reconciliation,you should add back(credit) to the beginning balance of bank balance and stated bank error in your title........no adjustment is needed in your cash book........
    • CommentAuthorabril
    • CommentTimeFeb 11th 2008
     
    here's the correct analysis..

    .. the company drawn the check, therefor the bank should deduct it to the company's account. what happened instead was, the bank erroneously deduct it to somebody else's account.. the company's bank account is overstated, so you have to deduct the figure to the unadjusted bank balance. it was the bank who made the error so no adjustment on company's book.

1 to 5 of 5

  1.  



 

Why AccountingCoach.com?

the accounting coach

AccountingCoach.com is designed to help people without an accounting background easily understand accounting concepts at no cost.


By investing thousands of hours, we have created clear and concise accounting information for both business people and students of all ages.


We understand how difficult accounting can be. That's why we have ensured that each accounting topic includes a clear explanation, reinforcing drills, Q&A, puzzles, dictionary of terms, etc.


Read 1,440 Visitor Testimonials



What's on AccountingCoach.com?