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Thread: BANK RECONCILIATION

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    BANK RECONCILIATION

    Dear All,

    Please kindly assist how I can adjust for unpresented cheques and receipts not yet banked and receipts and payments showing in the cashbook but not the bank statement in Pastel Partner V12.

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    Platinum Member Mike C's Avatar
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    Hi Tat - As far as my understaning goes, your cash book should be a reflection of your bank statement. If it isn't in the Bank Statement it shouldn't be in your Cash Book.
    An education isn't how much you have committed to memory, or even how much you know. It's being able to differentiate between what you do know and what you don't. - Anatole France

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    Site Caretaker Dave A's Avatar
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    Even in your management accounts, receipts not yet banked should typically sit in a separate account for undeposited receipts. In the financial statements this is normally reflected together with cash on hand as Cash and cash equivalents.

    When it comes to unpresented cheques you have issued, it's fine to capture the cheque for the date you issued it in your management accounts. That they have not yet been presented will emerge in your bank reconciliation. In this age of EFTs, it's been years since I've had such a situation over an end-of-financial year, but if I remember correctly those unpresented cheques are recorded as an item under current liabilities in the financials. (although I definitely speak under correction here).
    The trouble with opportunity is it normally comes dressed up as work.

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    We usually simply deducted them from cash and cash equivalents, provided that they were not older than 3 or 6 months, depending on the banks' policy on when a cheque is too old to be banked.

    But when doing an audit, we also went to bank statements after yearend to make sure if they were in fact banked or not. If they were not, we reversed that transaction at yearend.

    Hope this helps!

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