Principles of Accounting: Bank Statement

////Principles of Accounting: Bank Statement

Principles of Accounting: Bank Statement

ZIMSEC O Level Principles of Accounts Notes: Source Documents:Bank Statement

  • It is a document or report released (on a fixed date every month) by banks
  • It lists:
    • The balance at the beginning of the period
    • deposits,
    • withdrawals,
    • checks paid,
    • interest earned,
    • service charges
    • ┬ápenalties incurred if any
    • The balance at the end of the period
  • on a given account
  • It shows the cumulative effect of these transactions the account’s balance,
  • up to the date the report was prepared
  • Traditionally bank statements are sent out by banks to customers at the end of each month
  • With the rise in the use of electronic banking, bank statements are often send out as electronic documents
  • If required a bank statement can still be obtained as hard copy although banks charge a fee for the privilege
  • Also with the rise in usage of online banking bank statements can be obtained at any moment and not just when the month end
  • In accounting bank statements are an important source of information
  • They are used in preparing bank reconciliation statements
  • And verifying that certain debtors have settled their outstanding balances
  • Bank statements are also used to verify that payment to certain creditors went through

To access more topics go to the Principles of Accounts Notes.

By |2017-07-19T14:07:40+00:00July 19th, 2017|Notes, Ordinary Level Notes, Principles of Accounts Notes|Comments Off on Principles of Accounting: Bank Statement

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He holds an Honours in Accountancy degree from the University of Zimbabwe. He is passionate about technology and its practical application in today's world.
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