Day 2. Recording Transactions

E4. Bank reconciliations

a) Understand the purpose of bank reconciliations.
b) Identify the main reasons for differences between the cash book and the bank statement.
c) Correct cash book errors and/or omissions.
d) Prepare bank reconciliation statements.
e) Derive bank statement and cash book balances from given information.
f) Identify the bank balance to be reported in the final accounts.