Adjustments to Book Balance

Any items that require an adjustment to the depositor’s book balance in a reconciliation will require entries to be recorded in the depositor’s accounting records. Examples include overdrafts, automatic deposits, automatic loans and monthly service...

Petty Cash

Petty cash fund is the minimal amount of money kept on hand by a business entity to meet small expenditures eg postage, taxi fare etc. One individual should be responsible for the fund to maintain control. The fund is available currency and is periodically reimbursed,...

Adjustments to Bank Balance

Numerous items will require an adjustment to the balance shown in bank statement. These include deposits in transit, outstanding checks and errors made by bank. In the case of each of these items, an adjustment must be made to bring the bank balance to the true...

Bank Reconciliation

Bank reconciliation is a term used when settling differences contained in the bank statement and the cash account in the books of the bank’s customer. The ending balances will rarely agree. To reflect the reconciling items, a bank reconciliation is required....

Internal Control and Cash

Internal control should be well-organized with respect to cash. As cash is so much difficult to trace and easily stolen, special consideration should be given to this area of internal control. As a result of the ease with which cash can be stolen, organizations that...

Cash

In accounting, cash is the money deposited in a bank and items that a bank will accept for immediate deposit. Cash is paper money, coin, bank balances or other media of exchange such as bank drafts, checks or postal money orders. Items not included in the definition...