AFM: Concepts and Practice · Part A: Accounting Principles and Processes

Chapter 3: The bank reconciliation statement

Why the cash book and the pass book disagree, and how to agree them: adjust first, then reconcile.

Buyers of the e-book, or of the print copy, which includes it, read the whole chapter. Everyone can read the free sample, pages 1 to 24 of the e-book.

In this chapter

• 3.1Why the two balances differp. 31
• 3.2Preparing the statementp. 32
• 3.3Pass book first; overdraftsp. 33
• 3.4Adjust the cash book firstp. 34
• 3.5Reconciliation inside a bankp. 35
• Exam traps and quick checksp. 36
• Practice: 16 questions in three roundsp. 37
• Answers, with every wrong option explainedp. 39
• Make it stickp. 41
• Chapter 3 on one pagep. 42

Corrections and updates

None for this chapter so far. Every correction to the book, and any rule that changes after its date, is listed on the errata page.