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Bank Reconciliation

In the book of the company, incoming and outgoing cash is recorded when they are received or disbursed.  The timing of this change in cash in the bank (according to the books) is not the same as when the bank actually receives the funds or the cheques.  For this reason, at least once a month, there should be a bank reconciliation accounting for the difference between the cash in the books and the cash in the bank.


This level includes:

  • Unrecorded withdrawals on the bank statement
  • Unrecorded deposits on the bank statement
  • Outstanding Deposits in the books and not on the statement
  • Outstanding Cheques in the books and not on the statement

The exercises are the same, but with different amounts.