Question

1. read the following hypothetical situation and answer the questions in the forum.

You check the balance of your account at the bank and notice that it is higher than the balance you have in your records. What could be the possible reason? What process is used to reconcile such a difference?

Answer 1

These below could be possible reason that the balance in our bank account is higher than what we noticed:

1) Payment directly received from any one of our debtors

2) Bank has given interest on bank balance

3) Any Bonus amount received from anywhere

4) A pending cheque has been cleared

5) Any amount that was charged by bank earlier has been reversed etc.

To reconcile the difference take a balance whether it could be balance as per books or balance as per bank statement and then find those transactions which is not included in another and record them properly.

I hope this clear your doubt.

Feel free to comment if you still have any query or need something else. I'll help asap.

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