Financial accounting has many topics to learn for example basics of accounting, debits and credits, how tomake profit and loss , Balance sheet, trail stabilize. How to review financial statements and thus. Many Accounting institute offers Accounting courses as well as 1 year Accountancy diploma covering various useful topics, these is helpful for those students looking for an accounting course even from non accounting background people can learn the basic of accounting and understand the main principal of accounting and accounting standards.
For example one of the important concept in financial accounting is bank reconciliation, in the current topics I will explore come up with of bank reconciliation and the benefits or this exercise in accounting course, when compared to the word reconciliation shows is actually not the matching of two different statements of is liable for example the reconciliation of company’s own bank book with the bank statement provided by the banker, it can be done on monthly quarterly or daily basis depending upon the nature of the business and volume of transactions, similarly there can be party reconciliation where two statements of accounts of both supplier and customer is reconciled to discover the difference between into your market.
Basically demand of bank reconciliation in accounting arises any sort of accident difference from the balances of two statements one is company cash book one more is bankers statement, in practical scenario there are remote chances that those two balances match each other hence it takes an exercise to match the balances and evaluate the differences and establish the reasons of such differences. click here to carry out the task of bank reconciliation at finish of regular monthly.
Accounting diploma or Accounting courses from an established accounting institute will assist you to understand such basic accounting principles
To continue the topic during the particular reconciliation exercise there is a need to identify the needs and forms of differences and decide whether such adjustments of cash or cheques recorded inside the statements are needed or not, the expected to make any adjustments rrs determined by the nature of online business of difference, there end up being broadly two types of differences.
1) Any informational difference this represents any information which is protected in the bank statement but is not truly reflected in bank or cash records of the company
2) Timing difference, usually it is caused by the different in timings in recording the transactions the actual world cash book and bank statement, in such type of difference no adjustment entries are passed on.
All such transaction ought to be recorded in cash book before preparing any bank reconciliation statement, therefore when starting from unadjusted cash book balance after recorded adjustment entries, merely the adjusted balances goes towards the reconciliation statements, thereafter we proceed although rectification caused due to timing difference.