Re: Frank Wood Accounting Books

On 28 Nov, 15:33, "Tim" <m...@xxxxxxx> wrote:
"PeterSaxton" wrote

Tim won't like that site!

"All sizes of business that use a bank account (or their
accountant) must perform this. It is an essential business control."

http://www.nrbarton.co.uk/about/ourservices_bookkeeping11.html

Well, let's look at it a little closer:-

<QUOTE>

Bank Reconciliation

All sizes of business that use a bank account (or their
accountant) must perform this. It is an essential business control.

You must reconcile the balance per your bank statement
at the year-end (or month-end) date to the balance
per your bank "T" account in your nominal ledger.

There are several reasons why they might not agree:

[1]Bank deposit before the year-end but not yet cleared (uncleared
lodgements).
[2]Cheques paid before the year-end but not yet cleared (unpresented
cheques).
[3]Bank deposits gone through the bank, not included in your nominal ledger
(untraced bankings).
[4]Payments gone though the bank, not included in your nominal ledger
(untraced payments).
[5]Bank error (must notify the bank).
[6]Recording error (must adjust your records).
[7]Wrong additions in your books (adjust).

The correct balance is the balance per your bank statements (assuming
no bank errors) plus uncleared lodgements less unpresented cheques.

</QUOTE>

OK - as I've said all along, all you need to do is ensure
that your a/c's records are always correct as you go along,
and then you don't need to reconcile the bank statement.

This site AGREES with me! ...

The site says: "All sizes of business that use a bank account (or
their
accountant) must perform this. It is an essential business
control." [Ronald, please note that the purpose of the quotes is to
indicate the text is the same as what the site says. If I had said
"The site says all sizes of business that use a bank account (or their
accountant) must perform this. It is an essential business control."
people like Ronald and Tim would have not have known whether there was
any difference between the two statements. Of course the rest of us
would have understood what the quotes meant!]

If the site says that how is the site agreeing with you.

They say "The correct balance is the balance per your bank statements
(assuming no bank errors) plus uncleared lodgements less unpresented
cheques."
That means you ignore any differences under their items [1], [2] & [5]
above (i.e. use the a/c's anyway, not the bank statement, for these).

Any items under [3] or [4] are nothing to do with the
business, because they'd actually be in the nominal
ledger if they *were* valid -- so we ignore those too.

There also won't be any items under [6] or [7] above,
because (remember!) you keep your records correct...

So -- what differences will you find? NONE!!
Isn't it therefore *UNNECESSARY* ? ;-)

It's clear you don't understand either what happens in an accounts
department or what a control is.
.

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