Cash control and bank reconciliation statements

What this note covers

1. Why cash needs a control beyond the cash records
2. Two kinds of reconciling item
3. Worked example, part one: adjusting the cash book
4. Worked example, part two: preparing the reconciliation statement
5. Reading debit and credit balances on a bank statement
6. Cash control procedures beyond the reconciliation
7. How bank reconciliation is examined and what separates a top response

7 sections · 9 key terms & formulas · 6 common mistakes