15. Bank account reconciliations Flashcards
1
Q
What are the main differences between the cash book and the bank statement? (3)
A
- Unrecorded items (bank interest/charges, dishonoured cheques))
- timing differences (outstanding cheques/lodgements)
- errors
2
Q
What is an outstanding cheque?
What is an outstanding lodgement?
A
Outstanding cheque: a payment out via cheque that has been authorised by the company but not cleared by the bank yet.
Outstanding lodgement: a payment in via cheque that has been obtained by the company but not cleared by the bank yet.
