Question

When dealing with bank reconciliation statement while using misssing method the credit side of cash book corresponds to ?

Answer 1

Answer:

Debit Side Of Bank Statement.

Answer 2

Complete question:

When dealing with Bank reconciliation statement while using missing method the credit side of cash book corresponds to?

(a) Debit side of cash book

(b) Credit side of Bank statement

(c) Debit side of Bank statement

(d) None of them

When dealing with Bank reconciliation statement while using missing method the credit side of cash book corresponds to (c) Debit side of Bank statement.

Bank reconciliation statement:

"A bank reconciliation statement is a summary of banking and business activity that reconciles an entity’s bank account with its financial records."

Uses of bank reconciliation statement:

• In missing method, any error or omission of cash flow is detected. In this, the first step involves finding the error elements, the second step involves finding the book with this missing element and finally, the third step involves finding whether the missing element is from credit side or debit side.

• The bank reconciliation statement has the record of all credit and debit details of the bank account. It is highly beneficial control tool to detect fraudulence.
• The calculation of the reconciliation account is acceptable when the final amount calculated equals to the bank balance after all the adjustments.