The balance brought forward (bal b/f) at the top of the Bank Statement is dated 17th May. The ‘Knotwise Events’ receipt and ‘The Other Realm’ payment were recorded in the Cash Book on 14th May. As they are both ticked off, this means that those particular transactions were shown on the previous period’s Bank Statement rather than the Bank Statement in this video.
We included those transactions in this video to simulate how it might work in ‘real life’ if writing up a manual cash book.
The cash book effectively represents the bank account in the general ledger. In order to calculate what the current balance in the bank is (cash book), we have to deduct money out of the bank (Credit side - expenditure items) from the money coming into the bank (Debit side - cash sales/receipts etc.) This calculation will give us a carried down figure which we transfer to the receipts side of the cash book as a ‘balance brought down figure’.
The brought down balance represents the amount we now have in our bank account.
If the credit side of the cash book is higher in value than the debit side (i.e. expenditure is higher than income), then the carried down balance will appear on the debit side rather than the credit side of the cash book. This is quite complicated to explain, so if you have any further questions, please do get back to us.
This has been flagged as spam show
VERY GOOD VIDEO. Also found the below article very useful and comprehensive
tutoraccounts.blogspot.com/2011/10/how-to-prepare-bank-reconciliation.html
iibi1367 5 months ago
On the cash book, why is the 14/5 Knotwise Events particular of $179.50 already ticked from the start?
HNI4EVER 5 months ago
@HNI4EVER
The balance brought forward (bal b/f) at the top of the Bank Statement is dated 17th May. The ‘Knotwise Events’ receipt and ‘The Other Realm’ payment were recorded in the Cash Book on 14th May. As they are both ticked off, this means that those particular transactions were shown on the previous period’s Bank Statement rather than the Bank Statement in this video.
We included those transactions in this video to simulate how it might work in ‘real life’ if writing up a manual cash book.
APlusTraining 5 months ago
i dont understand at 1:57 where the Balance C/D of 706.18 came from?
FinalFantasyZack 5 months ago
@FinalFantasyZack
The cash book effectively represents the bank account in the general ledger. In order to calculate what the current balance in the bank is (cash book), we have to deduct money out of the bank (Credit side - expenditure items) from the money coming into the bank (Debit side - cash sales/receipts etc.) This calculation will give us a carried down figure which we transfer to the receipts side of the cash book as a ‘balance brought down figure’.
APlusTraining 5 months ago
The brought down balance represents the amount we now have in our bank account.
If the credit side of the cash book is higher in value than the debit side (i.e. expenditure is higher than income), then the carried down balance will appear on the debit side rather than the credit side of the cash book. This is quite complicated to explain, so if you have any further questions, please do get back to us.
APlusTraining 5 months ago
Realy helped me a lot to do it practically! ThumsUP!
naveed15 6 months ago
this said update the cash book balance but not in the cash book. yet the man placed them in the cash book. im confused
dumplingandtt 7 months ago
@dumplingandtt Thank you for your comment, I have just added a step by step guide in to the description. I hope that helps.
APlusTraining 7 months ago
Beautiful.
banwait16 8 months ago
great stufff the cartoon looks like hank from king of the hill lol
Megablues1000 1 year ago
Excellent! Just sound missed. It wil be nice if you have explianation as aid
bobichina 1 year ago