Part of Lesson Plan: The Bank Statement
Activity Overview / Details
Write the following question on the board:
Why do you think it is important to regularly compare the Cash in Bank ledger balance with the checkbook balance?
In pairs, have students write their answers on the board. After all pairs have written a response, discuss the answers. Point out answers that are on track, question answers that are too vague or don't quite cover the material - Have students explain their responses.
Teacher led part should include covering this information:
1. Part of internal cash control - keeping track of cash flow
2. Checking for errors (mostly in the checkbook)
Most common errors are:
- transposition errors - incorrectly writing the balance forward on the next check stub.
- addition/ subtraction errors
- failure to record a check or deposit or finance charge
3. Check balances before reconciling bank statement