Chapter 15 BANK RECONCILIATIONS Learning Objectives Bank statement and cash book Bank reconciliation Bank statement and cash book Bank reconciliation A comparison of a bank statement with the cash book The bank reconciliation is an important financial control The bank reconciliation will invariably show a difference Bank statement and cash book Differences on bank reconciliation • Errors: more likely in the cash book • Omissions: items on the bank statement not in the cash book (e.g bank charges) • Timing differences: e.g cheques issued and entered in the cash book but not yet presented at the bank Bank reconciliation Proforma bank reconciliation Bank reconciliation Proforma bank reconciliation ...Learning Objectives Bank statement and cash book Bank reconciliation Bank statement and cash book Bank reconciliation A comparison of a bank statement with the cash book The bank reconciliation... cash book (e.g bank charges) • Timing differences: e.g cheques issued and entered in the cash book but not yet presented at the bank Bank reconciliation Proforma bank reconciliation Bank reconciliation... The bank reconciliation will invariably show a difference Bank statement and cash book Differences on bank reconciliation • Errors: more likely in the cash book • Omissions: items on the bank