Accounting – 3.3 Bank reconciliation | e-Consult
3.3 Bank reconciliation (1 questions)
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Bank Statement Extract:
| Date | Description | Amount |
| 01/03/2024 | Customer Payment | £500 |
| 05/03/2024 | Supplier Payment | £200 |
| 10/03/2024 | Bank Charges | £5 |
| 15/03/2024 | Interest Earned | £2 |
Here are three different types of transactions shown:
- Customer Payment (£500): This represents money received by the business from a customer for goods or services provided. It increases the business's cash balance.
- Supplier Payment (£200): This represents money paid by the business to a supplier for goods or services purchased. It decreases the business's cash balance.
- Bank Charges (£5): This represents fees charged by the bank for services provided. It decreases the business's cash balance.
- Interest Earned (£2): This represents interest the bank has paid to the business for holding money in the account. It increases the business's cash balance.