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Quốc Anh says
December 16, 2015 at 2:43 pm
Could you explain about the question 1 a little bit?
I didn’t understand why the amount of 12720 have to been plus to deposit because this amount 12720 is a minus number…
John Moffat says
December 16, 2015 at 4:20 pm
The trainee accountant has prepared the reconciliation in the question, and has done it wrong.
Your job is to do it correctly and calculated the correct result.
(You can find the correct answer at the end of the lecture notes).
December 4, 2015 at 6:31 pm
Well if bank had made a mistake . Will we correct it in bank reconciliation statement??? If yes so why would that be?? Bank reconciliation only explain the differences in both balances due to timing difference??
December 5, 2015 at 1:45 pm
Please reply sir….
December 5, 2015 at 2:19 pm
It is better to ask in the Ask the Tutor Forum rather than as a comment on a lecture. With several hundred lectures it is simply not possible for me to check the comments under every one, every day!
If the bank has made a mistake you will tell the bank and have it corrected. Until then it will appear on the bank reconciliation statement otherwise it won’t agree with the balance on the cash account (which is the whole point of the statement!).
December 1, 2015 at 9:18 pm
Dr in bank statement is deduction
Cr in bank statement is addition
Dr in cash book is addition
Cr in cash book is deduction
December 2, 2015 at 7:13 am
December 2, 2015 at 5:56 pm
Thank you Mr John Moffat.
You said to start bank reconciliation with bank statement balance and end with the cash book balance.
Can I start with cash balance and end with bank statement balance as reversing the process of bank reconciliation?
October 1, 2015 at 2:58 pm
got all the answers right. Thanks for your lecture
September 24, 2015 at 4:24 am
September 14, 2015 at 10:18 am
Thank you so much for the lecture, it was very practical.
June 5, 2015 at 7:30 am
Sir, you just made my day, I fought my facilitator several times in class just on this topic, but now I get it.
June 5, 2015 at 7:52 am
I am pleased that you found it useful
October 4, 2014 at 11:56 am
Am facing a problem watching F3 video when open it F7 is coming as an error.What shoul i do.
May 29, 2014 at 11:42 am
I have a doubt. I want to know why lodgements are added to the balance. Aren’t they supposed to be an expense to the company and therefore lead to a fall in the bank balance?
May 29, 2014 at 3:26 pm
lodgements are payments that you receive from customers. therefore these are not expenses but is income.
April 29, 2014 at 1:42 pm
this excellent sir.Thank you
March 16, 2014 at 10:24 pm
November 6, 2013 at 12:56 pm
Dear John.. i have one problem. i want to know, if there is a bank error when to add and when to deduct when making bank reconciliation. thanks
November 6, 2013 at 1:08 pm
It depends what the error was!
If the bank has taken money out of your account by mistake, then you need to increase the balance.
If the bank has put money into your account by mistake, then you need to reduce the balance.
November 6, 2013 at 1:14 pm
October 8, 2013 at 11:13 pm
Allister is preparing a bank reconciliation at the end of January 2010. His bank statement shows a balance of $13,670 debit and he also ascertains the following:
(1) A direct debit of $2,890 has not been entered in the cash book.
(2) Cheques not yet presented amount to $1,700.
(3) $3,780 has been paid in to the bank but not yet credited to the bank statement.
(4) The ledger clerk has made an error when updating the cash book and recorded a payment of $270 as a receipt.
What was the balance on the cash book before any adjustments were made?
A B C D
$1,350 debit $12,320 credit $8,160 credit $19,180 debit
Sir I’m really in need of your help with this question. Plz plz plz
October 9, 2013 at 6:57 am
The bank statement show a DR, which means it is an overdraft.
Unnpresented cheques will make it more overdrawn and the 3780 not yet appeared will make it less overdrawn. So the correct balance is 11590 overdrawn.
So……. The correct balance on the cash account is 11590 credit.
Best is to write up a little cash account. You do not know the current balance before corrections and so this will be a missing figure. To correct, you will credit with 2890, and for the other mistake you will credit with 540 (270 was on the wrong side).
You know that the final balance is 11700 credit and so now you can calculate the missing figure.
(The correct answer is 8160 credit)
January 20, 2014 at 4:38 pm
how do we know the final balance is 11700?
January 20, 2014 at 5:17 pm
Sorry – I mistyped. The final balance is 11590 credit (as in the 4th line of my previous reply)
The rest of what I wrote is correct.
January 20, 2014 at 6:01 pm
thank u sir!
but i still am unclear:
i get the 11590 figure.
so, when you say credit 2980 and credit 540 i understand it to be as follows:
where am i lacking the understanding.
also when it says “a direct debit …” does it mean this money was taken out of the bank?
thank u for ur patience
January 20, 2014 at 6:11 pm
Don’t forget that 11590 is the final balance – not the original balance.
So if the original balance is X, then X – 2890 – 540 = -11590
So X = – 11590 + 2890 + 540
June 29, 2013 at 9:00 am
Thank you Mr johnmoffat. i wonder why i went to pay such hefty amount for the f3 course..the pace my lecturer was going was amazing. i was not able to grasp a single thing and here your lecture.. i must say amazing and just amazing. in a single line you are breastfeeding..excellent
August 28, 2013 at 11:15 am
I’m from MRU as well When are u taking the exams?
May 1, 2013 at 2:50 pm
Hi Mr Johnmoffat you have been a great lecture so far , long live Mr John although im unable to view your lecture on my phone samsung SIII bt I really appreciate your effort and time given to us students all over the world without a single moneny . May God bless you.
February 21, 2013 at 7:25 pm
Can you pls help me with the below question:
At 31 January 2007, George’s bank statement shows a credit balance of $1,500. In
comparing this with his cashbook, George has found the following:
• cheque payments amounting to $450 have not yet been presented at the bank
• bank charges of $20 have not been recorded in his cashbook
• cheque receipts amounting to $200 are not shown on the bank statement.
What amount should appear in George’s statement of financial position for cash at
According to your lecture and my understanding of bank recon the correct answer is D yet the answer given by them is B!!! Please do respond to me, I have posted a similar question in (allowance for receivable lecture) in which the naswer in my mock exam was different from what I learned in the lecture but no answer from opentuition, I need to clear that up as my exam is after tmr. Thanks!
May 1, 2013 at 3:49 pm
Hi Sir John – I also get answer $1250, answer B and I cant see where I’m wrong if your answer D is correct.
Please help – I’m doing my exam in 2 weeks
May 1, 2013 at 4:01 pm
biggles – it is not my answer. This was a question from his mock exam!
May 1, 2013 at 4:00 pm
The answer is B, and the reason is that the cheque receipts are lodgements/deposit not yet credited by the bank.
So…the bank reconciliation would show balance of 1500 less unpresented cheques 450 plus deposits not yet credited 200 = 1250. This would equal the correct balance on the cash book (although we cannot check the cash book because we do not know the current balance on the cash book)
(Your other question was answered in March)
May 24, 2015 at 11:24 am
Why I got my answer is 1270. 1250 is the correct cash amount in financial statement, but George didn’t record the rm20 due to error. The financial statement should show amount 1270 before correcting the error because the question didn’t state he corrected it.
May 24, 2015 at 11:27 am
Not at all! The statement of financial position has to show the correct figure, and he would have to correct it!
February 14, 2013 at 3:28 am
totally get it 100%
May 23, 2012 at 7:36 pm
How to deal with an Overdraft in Bank reconciliations , how often is it tested and how important is it?
May 23, 2012 at 8:07 pm
@rhwesley, why do we add cheques deposited and not cleared when dealing with overdraft as per cashbook?
August 2, 2012 at 10:01 am
@rhwesley, You are adding to a negative figure – it makes the overdraft less negative (i.e. a lower overdraft)
August 2, 2012 at 10:00 am
@rhwesley, An overdraft is simply a negative bank balance – otherwise everything is the same. There are often overdrafts in questions because it is easy then to make silly mistakes (see test question 1 at the end of the chapter).
May 23, 2012 at 7:30 pm
how do we deal with overdrafts in bank reconciliations
waqas maitla says
May 9, 2012 at 1:46 pm
Awesome teaching style.
April 24, 2012 at 8:20 pm
We entered 2100 in the cash account while it should have been 1200, therefore we’ve got an excess of £900 in the cash account, why do we debit the cash account (add another £900) instead of crediting the account with £900 in order to get the right figure i.e 1200. can you please explain? thanks
April 24, 2012 at 8:21 pm
@annakr, sorry just realised its a payment not money we received.
March 28, 2012 at 8:05 pm
I love unexpierenced accountants, they’re lovely))
March 18, 2012 at 8:29 am
u have to like this page to watch full lecture some time.
March 18, 2012 at 8:17 am
are there no boys in the class? only girls give answers…
August 2, 2012 at 9:58 am
@allamardneket4, the boys are more shy
March 18, 2012 at 7:56 am
we want to see lecture also……:P
February 19, 2012 at 4:03 pm
brilliant i like that. all confusing matters in the exam were touched….thank you Opentuition for these wonderful lectures.
November 13, 2011 at 6:10 pm
why is this lecture stuck halfway???
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