Bank and cash statements

In this lesson

1. 0:00 Filling gaps in ledger accounts
2. 0:25 Application process step by step
3. 0:46 Worked example: Chengdu receivables
4. 2:09 Outro

About this lesson

The method follows a straightforward process: open the relevant ledger account (such as a receivables control account), use your information sources—bank statements, cash books, till analysis reports, or memorandum accounts—to fill in known figures, then apply basic double entry principles to calculate the missing balance. By working through the gaps systematically, you can derive figures like total sales, cash receipts, or year-end balances that aren't directly available. You'll work through a practical example where a company has lost financial records due to fire damage. Using opening balances, cash received from customers, and closing memorandum account balances, you'll reconstruct the credit sales figure and calculate total sales for the year. This approach reinforces how fundamental double entry bookkeeping principles allow you to find missing information when you have enough data points—a skill that appears regularly in exam questions and real-world accounting scenarios.

Duration: 2m