Time Tracer Ltd - Publishing


2nd Edition by Edwin Olima FCCA

ISBN 0-9543820-1-3










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In this exercise you will check the bank account transactions  listed out in the previous chapter to the bank statements to ensure that no mistakes have been made.


To do this, follow the steps listed below:


Step 1.      Get the bank statement  from your Work Pack on page 44 and using a red pen tick each transaction that you can see in BOTH the bank statement and the bank account transaction listings  (the receipts and payments lists compiled in Chapter 3 ).


Step 2.         You should be left with two cheque transactions  in the bank account transaction listings that have not been ticked. These are the cheques  that have not yet cleared through the bank as per the bank statement .


Step 3.        Ensure that the bank statement  balance at the end of the period can be reconciled  to the net balance of the bank account transaction summary (Chapter 3 ) .


To do this, arrange your reconciling sums in the format below.



Bank Account  Reconciliation



Balance Per Bank Statement


Less: Cheques not yet cleared through the bank



Cheque No.















(                      )

Balance per bank account summary (as calculated in Chapter 3 above)




In accounting, negative numbers are denoted with brackets (    ) around them indicating that they should be deducted when totaling up a column of figures. This is the preferred alternative to using the familiar negative sign ‘ – ‘.


Compare your bank reconciliation to the one in the answer at the back of the book.

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