How to procedure bifurcation of bank account statement f.y.22-23

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A Gst registered dealer sales and purchase, receipts and payments all transactions through on sbi current account mode..if A person bank statement from 01-04-22 to 31-03-23 from sbi number of pages 80 bank statement.
1.cash deposit in bank account number of huge transactions
2.upi sales transaction in bank account number of huge transactions
3.amount received from debtors through on neft and rtgs number of huge
transactions
4.amount pay to creditors through on bank mode number of huge transactions.
Question:
Assessess account transaction bifurcation procedure bank statement transactions for account records entry passed procedure in books.

1 Answers

1 Vote Up Vote Down

S.Chand answered 9 months ago

Text of transaction in bank statement can be used to identify different transactions in following manner:-

In every online payment transaction, use text such as “creditor name’, ID, or code.
Ask your customer to use write ‘name”, “id’, “code” in text column every time, when they make payment through neft, upi or rtgs or other upi sales transactions.
Ask your bank to print full text of transaction in bank statement.
You can also ask for UTR number and match with bank statement. Hence unidentified entries can be identified with the help of UTR number.
Prepare Bank reconciliation statement on monthly basis is helpful. you should prepare your “bank reconciliation statement” at regular intervals to keep track of all the entries which cause difference in books of accounts in bank statement like Cheques issue but not presented for payment, Cheques deposited but not yet credited etc.

Further if number of transaction are high, then you should record all the transactions more frequently as soon as possible and pass entry in books of accounts like daily, weekly or fortnightly.
If you have many bank account with high number of transaction. Then you should keep separate staff to monitor and record all the transaction on daily basis. This staff will match each transaction and can also for detail of transaction from field staff/counter staff if required.