GEN - FORMULAS

Question 1

What is the formula for a bank to book reconciliation?

Answer 1

Balance on bank statement
\+ Deposits in transit
- Outstanding Checks
\+/- Errors made by bank
= Corrected balance

Question 2

What is the formula for a book to bank reconciliation?

Answer 2

Balance on books
\+ Amounts collected by bank
- Unrecorded bank charges
\+/- Errors made in recording transactions
= Corrected balance

Question 3

What is the formula for average total assets?

Answer 3

Net credit sales / total assets turnover

Question 4

What is the formula for net credit sales?

Answer 4

Average total receivables X receivables turnover