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causes that lead to a discrepancy between bank statement balance and cash book balance?

causes that lead to a discrepancy between bank statement balance and cash book balance?

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Answer #1

Followings are the main causes that lead to a discrepancy between bank statement balance and cash book balance;

1. Cheques issued but not yet presented for payment

2. Cheques paid into the bank but not yet collected by the bank

3. Interest and dividends received by the bank

4. Direct deposits made by the parties

5. Direct payments made by the bank

6. Interest credited by the bank

7. Account debited by the bank for bank charges

8. Account debited by the bank for interest expenses on bank overdraft

9. Collection made by bank for bills

10. Dishonour of a bill discounted with the bank

11. Dishonour of cheque deposited with the bank

12. Various types errors made by bank or firm

13. Omission by the bank or firm

14. Account debited by the bank for check printing charges

15. Electronic deposits on the bank statement that are not yet recorded on the books etc.

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