Question

What types of items cause the balance per ledger and the balance per bank statement to disagree?

Answer 1

Answer:

The items that can cause the balance as per bank and cash book to disagree are as follows:

Timing differences:

1. Checks issued but not presented for payment;
2. Checks deposited in bank but not yet cleared.

Transactions recorded by bank only:

1. Interest credited by bank;
2. Bank charges debited by bank;
3. Interest and dividends collected by bank;
4. Direct payments by bank;
5. Direct deposits into bank by the customer.

Errors:

1. Amount recorded in cash book by wrong amount;
2. Amount recorded in cash book ion wrong column.

In case of any doubt, please comment.