Introduction to bank reconciliation

Bank reconciliation means some of the transaction entered in the cash book not in the pass book and some transaction entered in the pass book not in the cash book. In other words we can say that always opposite entry in cash book and pass book. The bank pass book indicates the amount paid into the bank and the amount withdrawn there form. The pass book balance or any given data must be the same as the balance shown by the bank column of the cash book on the same date.

 

The reason responsible for the difference may be delay in intimation, time gap between recordings of transaction in cash book and pass book due to errors and omissions in cash book and pass book.

First of all create the ledger

At the time of ledger creation, all the entry which are related to cash and bank change period (current period) effective date of reconciliation.

Then to open bank entry:

•    Display -->trial balance 
•    Trial balance -->ALT +F1

• ALT +F1 --> open entry of bank account
• Open entry of bank account --> press enter 2 times
• Press enter 2 times --> F5 for reconciliation
• F5 for reconciliation -->Press F12 for setting: 

•  Activate allow forex detail also.
•  Activate show reconciliation.
•  Activate show narration.