The correct order in which the steps in the bank reconciliation process occur is:
i. Tick off the items in the prior reconciliation with the bank statement
ii. Prepare the bank reconciliation
iii. Tick off the cash journals with the bank statement
iv. Update the cash journals with unticked items from the bank statement

Question

Quizplus · Accepted Answer

The bank reconciliation process should start by ticking off the items in the prior reconciliation with the bank statement (i), followed by ticking off the cash journals with the bank statement (iii). After both of these steps are complete, the cash journals can be updated with any unticked items from the bank statement (iv). Finally, the bank reconciliation can be prepared (ii). Therefore, the correct order is i, iii, iv, ii, making option C the correct choice.

The Correct Order in Which the Steps in the Bank