00:03
So we are asked to make a bank reconciliation statement in the proper format, right? so to be honest, it doesn't really matter what you start off with exactly, whether you're starting off with the balance for the bank or the balance of the company.
00:22
As long as you reach the same figure, then it's acceptable, right? so as always, you have your title and your dates and your companies, but i won't write that.
00:31
For now, i'm just going to start off with the first thing.
00:34
That comes in your statement.
00:36
So i'm going to start with the balance as per bank, right? so you need to be very careful with which balance you write here so that you don't mistake yourself and set up with the wrong things.
00:47
So now i'm writing balance as per bank, because this is where i'm starting off, right? so balance as per bank is 9 ,350, right? then i need to add all the things that i'm missing from my bank, right? so this includes deposit in transit.
01:14
So this is something that we have recorded in our books as the company, that we have these deposit, but this money is still in transit to the bank.
01:25
So the bank doesn't know that we have this money in our accounts, right? so we need to edit to the bank balance.
01:33
So that's 2 .350, right? and then we need to deduct anything that hasn't yet been deducted, right? so this includes outstanding checks.
01:45
So outstanding checks, what it simply means is that we have given someone a check or maybe we have paid some expenses using a check, but these people haven't actually gone to the bank and cleared and collected their money from this check.
02:01
So we have given it out in our bank, in our company books, we have required...