November 4, 2009 
This entry was posted on Wednesday, November 4th, 2009 at 9:04 pm and is filed under Accounting, Bank Reconciliation. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
A bank reconciliation is done when you receive a statement from the bank. If you are handling the accounting for a small business this is what you need to know about bank reconciliation. There are two basic types of bank reconciliation. The first one is reconciling not requiring adjustment on the books and the second one is reconciling requiring adjustment on the books.
The reconciling items that do not require adjustments are bank errors, outstanding checks and deposits in transit. The reconciling items that do require adjustment are errors in the cash account, unrecorded returned checks (NSF), unrecorded bank charges and unrecorded bank collections.