Why the bank and the cash book disagree
The cash book and the bank statement rarely show the same balance. Learn the three kinds of reason and which way each one pushes.
Task 1Two records of the same money3 questions
The cash book is Calder Cycles' own record of its bank account. The bank statement is the bank's record of the same account.
On 31 May the cash book shows £2,855 and the statement shows £2,935.
A gap like this is normal. There are three kinds of reason for it.
- Timing: an item is in the cash book but has not reached the bank yet
- Items the bank knows first: they are on the statement but not yet in the cash book
- Errors: a mistake in the cash book or, rarely, by the bank
Task 2Timing differences3 questions
Task 3Items the bank knows first, and errors4 questions