Outstanding lodgement
What is an outstanding lodgement?
An outstanding lodgement is money paid in, in the cash book, that the bank has not shown yet.
It is a timing difference, and it clears by itself.
In a bank reconciliation it is added to the balance on the bank statement, because the bank will add it.
Example
A bakery pays in £400.00 on 30 June and enters it in the cash book. The June bank statement does not show it. In the bank reconciliation, £400.00 is added to the balance on the bank statement.
Why it matters
The cash book needs no change for it. It is listed in the bank reconciliation, where it explains part of the gap between the two balances.
Practise it
Practise it nowWhy the two balances differ
Ledger Drill is practice, not tax or accounting advice. If this looks wrong, tell us at [email protected].