Saturday, June 23, 2012

BANK RECONCILIATION

WHAT IS BANK RECONCILIATION?  Bank Reconciliation is the process of bringing the bank's monthly report for each depositor showing deposits made, check written, cancelled checks, and service charges. Checkbook contains checks and check stubs. The checks are filled out by the depositors made, and of charges made by the bank. Reconcilliation statement putting an agreement the bank statement balance and the checkbook balance.


Here are some reasons why there is a bank reconciliation.
The differences in the balances may be due to:
  1.Outstanding Checks These are checks issued by the depositor but have not yet been presented to the bank for payment.
  2.Deposit in Transit. These are deposits made but late to be included in the monthly bank statement.
  5.Cancelled checks. These are checks that have been paid by the bank.


This informations will help if you will open an account with check. Checks are important mostly for those businessman and companies. But what is checks for? Checks are for safety purposes of the account owner. Like for an example, if you are to buy a land that costs 1-2 Million and you don't want to carry it along the way because something might happen like robbery or hold-ups. For me, if I'm going to pay my tuition fee, my Dad will give me a check instead of the money also for my safety because I commute everyday when I go to school. I don't want to bring 20 thousands or more money with no guard or somebody who will protect me, it is a little bit scary to bring too much money. My Dad also use his checks for his business.  We owned a retailer for gas, oxygen, trading and general merchandise, if we will order or fill up my Dad pays the through checks and sometimes uses Post dated checks.


The picture above is one example of a check. My Dad said that every check almost cost 30 pesos so he said don't waste it. He also writes the amount written in every checks in the first page of the check book. It's for the balance the checkbook for the checking of Account. It looks like this:
This is to keep track of your checks.
Approved by : http://mathduhmatics.blogspot.com/2012/06/our-very-own-math-professor.html
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4 comments:

  1. Mind GamesJune 24, 2012 at 7:49 AM

    you have given me a practical knowledge of using checks. I will now apply what i learned here into good use. The topic was explained in a very understandable manner, thanks for the help!

    ReplyDelete
  2. UnknownJune 24, 2012 at 7:55 AM

    Your post is very informative. The pictures also helped a lot. Very informative. Keep it up!

    ReplyDelete
  3. UnknownJune 25, 2012 at 6:23 AM

    Nicely explained. I had no idea that a lot of recording and assessment goes on when you own a check book.

    ReplyDelete
  4. AnonymousJune 25, 2012 at 6:40 AM

    So far, you're the only one who's used a check that is from the Philippines. The rest of our classmates have used checks from outside our country as examples, but seeing as you used one from a bank here in the Philippines makes it easier to relate to and understand. Good job for being a standout! (:

    P.S.

    That's a big amount written on that check. The person getting it is pretty lucky.

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