Papers by Aaschy Chiwanza
Teaching Documents by Aaschy Chiwanza
Accounting simplified notes
Drafts by Aaschy Chiwanza
How to control cash movements
The main reasons for differences between the cash book and the bank statement The balance on the ... more The main reasons for differences between the cash book and the bank statement The balance on the cash account (which should be the same as the balance in the cash book) is compared to the balance on the bank statements at a given date. However, these two balances may not agree. There are various reasons 1. Time lag between writing a cheque and the payment appearing on the bank statement (unpresented cheques) 2. Time lag between depositing amounts into the bank account and these appearing on the bank statement (unrecorded lodgements) 3. Direct debits and standing orders are not yet recorded in the cash account (or cash book) 4. Bank charges not recorded in the cash account (or cash book) 5. Errors, such as transposition errors, or casting errors in the cash account (or cash book) 6. Errors made by the bank on the bank statement Differences between the cash book and the bank statement Therefore, differences between the cash book and the bank statement arise for 3 reasons Errors-usually in the cash book Omissions-such as bank charges, standing orders and direct debits not posted in the cash book Timing differences-such as unpresented cheques and unrecorded lodgements
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Papers by Aaschy Chiwanza
Teaching Documents by Aaschy Chiwanza
Drafts by Aaschy Chiwanza