The Cash at Bank Account for month one (M1) shown below, taken from the WS M1, lists all incoming and outgoing cash during the reporting period. The final balance at the end of the month, 758,550, should be equal to the balance shown in the bank statement, and is used to reconcile our own accounting with the statement from our bank.
The bookkeeping procedure to record transactions in the General Ledger, Bank Account, and to close out the account so that the Cash at Bank for the new period starts with cash balance brought from the previous period or "balance brought down (b/d)" is as shown below:
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