Transcript HKCEE Principles of Accounts - Form 4 1. Basic Accounting 2. Trading and Profit and Loss Account 3.

HKCEE Principles of Accounts - Form 4
1. Basic Accounting
2. Trading and Profit and Loss Account
3. Balance Sheet
4. Books of Original Entry
5. Cash Book
6. Capital and Revenue Expenditure
7. Depreciation of Fixed Assets
8. Bad Debts and Provision for Bad Debts
9. Other Adjustments for Final Accounts
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HKCEE Principles of Accounts - Form 4
10. Bank Reconciliation Statements
11. Errors and Suspense Accounts
12. Control Accounts
13. Incomplete Records - Final Accounts
14. Incomplete Records - Stock Valuation
15. Income and Expenditure Accounts
16. Manufacturing Accounts
EXIT
HKCEE Principles of Accounts - Form 5
1. Accounting Ratios
2. Accounting Concepts and Conventions
3. Partnership Accounts - Final Accounts
4. Partnership Accounts - Goodwill
5. Partnership Accounts - Revaluation
6. Partnership Accounts - Realization/Dissolution
7. Company Accounts - Final Accounts
8. Company Accounts - Issue of Shares
9. Incomplete Records - Cash Shortage
EXIT
Bank Reconciliation
Statement
I. Why?
The bank balance as per cash book may not be equal to the
bank balance as per bank statement at the month end because
of time lag in depositing receipts or autopay service from the
bank.
A Bank Reconciliation statement (BRS) can provide an
arithmetical proof to show the reasons for the difference.
II. How?
1. No adjustments are made in bank balance in cash book
Only shown in
1. bank interest received
2. credit transfers
3. bank charges
4. dishonored cheques
5. standing order to pay
expenses
6. autopay to pay expenses
7. unpresented cheques
8. lodgments not yet
recorded by banks
9. uncredited cheques
BRS starting with cash
book balance
bank statement add
bank statement add
bank statement deduct
bank statement deduct
bank statement deduct
bank statement deduct
cash book
add
cash book
deduct
cash book
deduct
Reconciling the bank balances :
ABC
Bank Reconciliation Statement as at 31 Dec 2000
$
$
Balance as per cash book
x
Add: bank interest received
x
credit transfers
x
unpresented cheque
x
x
x
Less: bank charges
x
dishonored cheques
x
standing order to pay expenses
x
autopay to pay expenses
x
lodgments not yet recorded by banks
x
uncredited cheques
x
x
Balance as per bank statement
x
=
2. Adjustments are made in the bank balance in cash book
Only shown in BRS starting with cash
book balance
1. bank interest received
2. credit transfers
3. bank charges
4. dishonored cheques
bank statement
bank statement
bank statement
bank statement
Dr bank in cash book
Dr bank in cash book
Cr bank in cash book
Cr bank in cash book
5. standing order to pay
expenses
6. autopay to pay expenses
bank statement Cr bank in cash book
7. unpresented cheques
8. lodgments not yet
recorded by banks
9. uncredited cheques
cash book
cash book
add in the statement
deduct in statement
cash book
deduct in statement
bank statement Cr bank in cash book
Updating bank balance in cash book :
Cash Book (Bank Column)
Balance b/f
x bank charges
interest received
x debtors: dishonored
cheques
debtors: credit transfers
x expenses: standing order
expenses: autopay
Balance c/d
x
=
x
x
x
x
x
x
=
Reconciling the bank balances :
ABC
Bank Reconciliation Statement as at 31 Dec 2000
$
$
Adjusted balance as per cash book
x
Add: unpresented cheque
x
x
Less: lodgments not yet recorded by banks
x
uncredited cheques
x
x
Balance as per bank statement
x
=
3. Adjustments are made in the bank overdraft in cash
book
Only shown in BRS starting with cash
book bank overdraft
1. bank interest received
2. credit transfers
3. bank charges
bank statement Dr bank in cash book
bank statement Dr bank in cash book
bank statement Cr bank in cash book
4. dishonored cheques
5. standing order to pay
expenses
6. autopay to pay expenses
bank statement Cr bank in cash book
bank statement Cr bank in cash book
7. unpresented cheques
8. lodgments not yet
recorded by banks
9. uncredited cheques
bank statement Cr bank in cash book
cash book
add
cash book
deduct
cash book
deduct
Updating bank balance in cash book
Cash Book (Bank Column)
Balance b/f
x bank charges
interest received
x debtors: dishonored
cheques
debtors: credit transfers
x expenses: standing order
Balance c/d
x expenses: autopay
x
=
x
x
x
x
x
=
Reconciling the bank balances :
ABC
Bank Reconciliation Statement as at 31 Dec 2000
$
$
Adjusted balance as per cash book (overdraft)
(x)
Add: unpresented cheque
x
(x)
Less: lodgments not yet recorded by banks
x
uncredited cheques
x
x
Balance as per bank statement (overdraft)
(x)
=