L6 04 Forms of Bank Reconciliation Statement

• Bank Balance to Book Balance Method

  This form reconciles the bank balance to the unadjusted balance of the depositor’s cash account in the general ledger. This is the form frequently used by many auditors to trace the accounting entries taken up by the company’s bookkeeper.
• Book Balance to Bank Balance Method

  This form starts with the cash balance per ledger (or per books) and reconciled to the balance per bank

  statement.
• Adjusted Balances Method

  This form is prepared in two (2) sections: the bank statement balance being adjusted to the correct balance

  is the first section, and the book balance being adjusted to the same corrected cash balance in the second

  section. The bank section reflects items not yet recognized by the bank as well as corrections for any errors

  made by the bank. The book section contains items that the depositor has not yet recognized, and any corrections for errors

  made on the depositor’s books.