會計REPORT!

Your questions can be explained as follows:

1. Please pay special attention to the words 'credit' balances. Normally, bank accounts, unless they are 'bank loan' accounts, are 'debit' balances. 'Credit' balances means you owe the bank money. Then you need to explain why you owe the bank money. In most of the cases you write out a cheque but forget to transfer the fund to the current account and this results an 'O/D'. Some other examples may be the bank charges you service fees, bank charges, etc. beyond your remaining bank balance, so you owe the bank money. The HK$10,000 guideline is just a significant level for explanation because your boss or auditors only want big amount explanation. They have no time to listen to you to explain why you owe the bank, say, HK$5.00.


2. Remember, 'lead schedules' are top-level summary schedules listing all the major account balances, just like those on your balance sheet. They not only include 'bank' account, but also 'accounts receivables', 'inventories', 'prepayments', etc. So you need to explain why, for example, the 'inventory' balance as at 31 March 2010 was so different from that of 31 March 2009. Again, the HK$10,000 or 10% guideline is just a significant level for explanation because your boss or auditors only want big amount explanation.

Hope the above can help.

1. You have to give reason why the bank balance is greater than $10,000. there maybe a company's policy that the specific bank account must has a balance below $10,000 simply 1) there maybe a loss of opportunity of the company to earn interest and/or 2) It is too risky for the balance to be misdrawn as the signing arrangement is much clexible in this bank account.

2. You have to prepare a schedule listing all ending bank balances at the end of this accounting period and to that of the same period in last year. If the current balance is over or under $10,000 than that of the last year's, an explanation have to be given for such an increase. Reasons maybe unpresented cheques, deposits not recorded, over expenditures etc.