Banking Concept, Cash book and Bank Reconciliation Statement
This note describes about the cash and bank transactions that happens in the bank. It also describes about the means of payment i.e. cheque. The receipts of cash from various sources and payment of cash on various heads are important routine transactions of a business.
A business must have strict financial rules and accounting system to perform, record, report and control the cash and banking transactions
A Bank reconciliation statement such a statement which is prepared to show how the Bank Balance as per Cash Book and the Bank Balance as per Pass Book use to differ each other.
Account holder makes payment to its creditors and other outstanding parties through cheques is known as cheques issued or cheque drawn.If third parties unavailable to present the same cheques its effect is only shown through cash book thus to shown through Bank Reconciliation statement.
This note describes about the different types of cheques and also provides a overview about cash book. A crossed cheque can be made bearer cheque by cancelling the crossing and writing that crossing is cancelled and affixing the full signature of drawer. When a certain bank's name is written in between the two parallel lines, then the cheque are said to be specially crossed.