[go: up one dir, main page]
Scribd
Upload
97 views4 pages

Intacc Bank Recon

This document discusses bank reconciliation and estimating doubtful accounts. It defines terms like deposits in transit, outstanding checks, credit memos, and debit memos that are used in bank reconciliation. It also presents formulas for calculating the allowance for doubtful accounts using the percentage of net credit sales method and percentage of accounts receivable method.

Uploaded by

Michelle Esternon
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
97 views4 pages

Intacc Bank Recon

This document discusses bank reconciliation and estimating doubtful accounts. It defines terms like deposits in transit, outstanding checks, credit memos, and debit memos that are used in bank reconciliation. It also presents formulas for calculating the allowance for doubtful accounts using the percentage of net credit sales method and percentage of accounts receivable method.

Uploaded by

Michelle Esternon
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
You are on page 1/ 4

Bank Reconciliation

1 Deposit in Transit
These are deposits already made but not yet received by the bank
2 Outstanding Checks
These are checks drawn and released to payees but not yet presented for encashement to the bank
3 Credit Memos
Collections made by the bank on behalf of the entity
Proceeds from loans directly credited or added by the bank to the entity's account
Unrolled-over matured time deposits transferred by the bank to the entity's account
4 Debit Memos
Bank Service charges
No sufficient fund checks or (DAIF)
Automatic debits (automatic payments)
Payment of loans
5 Errors
either by book or entity (book)

Pro Forma
Balance per books, end Balance per bank, end DIT, beg
Add: Credit Memos Add: Deposit in Transit Deposits made during current month:
Less: Debit Memos Less: Outstanding checks Total Debits per books
Add/Less: Book errors Add/Less: Bank errors Less: CM last month
Adjusted Balance Adjusted balance Less: Effect of book error last month
Add/Less: Effect of book error in curren

Checks encashed by bank during curren


Total Debits per bank
Less: DM in current month
Less: Effect of bank error last month
Add/Less: Effect of bank error in curren

Estimating Doubtful Accounts


1 Percentage of net credit sales
2 Percentage of AR
3 Aging of Receivables

Percentage of net credit sales Method Allowance for Doubful Accounts (A4DA)
Total Sales Write off
Less: Cash Sales
Gross Credit Sales
Less: Sales returns and discount End
Net Credit sales
Multiply by: Percentage
Bad Debt Expense

Percentage of AR Method
Computing Ending Balance of AR Computing Allowance for Doubltful Acc
AR Accounts Receivsble, End
Beg Write off Percentage
Net Credit Sales Collections on account (add recovery) A4DA, end
Recovery
End
ment to the bank

DIT

made during current month: Deposits credited by bank during current month:
its per books Total Credits per bank
Less: CM in curent month
ct of book error last month Less: Effect of bank error last month
Effect of book error in current month Add/Less: Effect of bank error in current month
DIT, end

OC
OC, beg
cashed by bank during current month: Checks drawn during current month:
its per bank Total Credits per book
in current month Less: DM in last month
ct of bank error last month Less: Effect of book error last month
Effect of bank error in current month Add/Less: Effect of book error in current month
OC, end

ul Accounts (A4DA)
Beg
Recovery
Bad Debts Expense
g Allowance for Doubltful Account, End
Receivsble, End xxx
%
XXX

You might also like