[ayesha8]

Hi please someone explain why all the addition and subtraction signs are the other way around? In bank reconciliations we are supposed to record where it wasnt recorded because of some error. I did the same i.e.

Balance as per cashbook
opening 8970
less bank charges not recorded 550
gives us , adjusted cash balance – 8420

Now since that has to be same for a reconciled statement,
balance as per bank after adjustment – 8420
then add back items which should have been subtracted to reconcile – 3275 & 425
and less the item that had to be added – 5380

gives us balance before adjustment – 6740

Those were my calculations. Please explain why the addition and subtraction signs were opposite to what I have done.

Thanks a lot

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