Bank Reconciliation

Emma Croft · February 2012

I am doing an assignment at college at the moment on Bank Reconciliation.

I have got to the bank reconciliation statement at the end and there is a discrepancy.

There is a space on the assignment sheet to any discrepancies you may find I think.

Please can someone tell me if this is normal to find a discrepancy and add the amount to make it
balance?

I have checked all my workings out to make sure that I have not missed anything.......

Thanks in advance for any help you can give :001_smile:

Emma

crispy · February 2012

Hello,

You may have a difference due to items that are on bank statement but not on your cash-book such as bank charges, direct debits, standing orders or interest. The purpose of performing the reconciliation is to prove out the difference between your bank statement and cash-book so I wouldn't just include a figure to make up the balance.
The bank rec. should look something like:-

Balance per Bank Statement: x
Add: Outstanding Receipts: x
Less: Outstanding Payments:(x)
Balance per cash-book: x

This may or may not be of help.

KaySarah · February 2012

I haven't done one at College Emma, but have done many in Real Life. There are indeed times when there may be a small discrepancy and an adjustment can be made. IF you have made sure your opening balance is exactly as it should be and all your transactions match, have you checked to ensure the "bank" has not made an error and mis-typed a figure (are you given the bank statement? - if not, then you can assume this is what may have happened to cause your difference).
If you are talking BIG numbers, check your figures again with fresh eyes for either transpositions or an extra zero or misplaced decimal point before committing to the discrepancy (as you will notice, I tend to be very cautious).
I hope this is of help to you.
Kay

Emma Croft · February 2012

Hi

Thanks for the advice, this does help :-)

Fingers crossed I have got it right!

Bank Reconciliation

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