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Bank reconciliation statement

Anshuman (Article Assistant) (87 Points)

29 March 2014

while preparing Bank reconciliation Statement, i came across value date and transaction date.

my transaction date and value date was 31st january 2014.

first i took this as my closing balance..

then i saw another entry where my transaction date was 1st february 2014 and value date was 31st january 2014.

my first question is ' what is the difference between transaction date and value date?'

Second Question ' Which date is to be considered for taking closing Balance of 31st january 2014?'

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3 Replies

Danish (GST Practitioner) (219 Points)
Replied 29 March 2014

Anshuman,

ans 1. Value Date Is The Date Of Entry In Account Book,

ans 2.Transaction Date Is The Date When The Actual Payment / Receipt Happened In Bank,

Second Question Im Little Confused About What You Mean,

For Reconciling The Bank Account you have to take either Ledger Balance or Bank Statement Balance Below I Just Pasted a Sample Of Bank Reconciliation Statement ( Bank Statement Balance to Book Balance)

Bank Reconciliation
DATE	PARTICULARS	AMOUNT
	ADD: Payments Not Reflected In Book	AMOUNT
		100












	Less: Receipts Not Reflected In Books	Amount














	BALANCE AS PER STATEMENT	302243.95
	AMOUNT NOT REFLECTED IN BOOKS	100
	BALANCE AS PER TALLY	302343.95

Anshuman (Article Assistant) (87 Points)
Replied 29 March 2014

Thanks for your concern Danish,

by date of entry in books means that the instrument in the bank was cleared on value date??

if yes,

then when is it possible that my value date precedes my ttansaction date in the bank statement.??

Also, preparing of the bank statement is secondary,

i want to know that which date should i consider for for closing balance, my transaction date or value date.

in the bank statement i came across an entry where my transaction date as 31st jan and value date as 31st jan, next entry was where transaction date is 1st feb but value date is 31st jan.

Further, why should i take value date for preparing BRS. If my transaction took place on the 31st of jan and it got cleared on the 1st of feb(value date), shouldnt this transaction be reflected in my BRS.

Danish (GST Practitioner) (219 Points)
Replied 29 March 2014

Anshuman,

ans 1. Value Date Is The Date Of Entry In Account Book, which means Instrument Date Not The Bank Date

ans 2.Transaction Date Is The Date When The Actual Payment / Receipt Happened In Bank, which means "Bank Date" When The Instrument Got Cleared From Bank

Rest All Vise versa

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