What are some reasons that cause the balance on the bank statement to differ from the cash balance on the books?

Following are some of the causes because of which the balance on the bank statement differ from the cash balance on the books:

1. Interest directly debited by bank but not entered in cash book.
2. Bank Commission directly debited by bank but not entered in cash book.
3. Cash/cheque deposited by customer directly by customer in bank.
4. Cheques deposited but not cleared in bank.
5. Cheques issued but not presented for payment in bank
6. Cash margin amount taken by bank as security for issuance of guarantee
7. cheques deposited and returned or bounced
8. Interest credited by bank directly.

1. Being the cheque(s)issued but not presented by the customers

2. Being the cheque(s) deposited but not credited.

3. Interest / bank charges  /bill discounting / LC charges etc are debited by bank are not accounted by us..

4. Interest received / credited against our deposits / securities are not accounted by us.

5. Interest on overdrafts & BG's etc charged by banker and not accounted by us.

errors on the books, errors by the bank, electronic charges on the bank statement not yet recorded on the books, and electronic deposits on the bank statement that are not yet recorded on the books.

 

Bank charges such as monthly management/service fees

The following are some of the reasons but not limited to:

 From the Bank Statement/ Cash book

- Bank charges

- Wrong debit / credit on account

- Uncredited cheques paid in and unpresented cheques by clients

-  Error of principle, where wrong posting have been done to cash book

- Returned/dishonoured  cheques

- Credit interest

Just to mention a few...

following are the factors that may cause a difference on the bank statement and the cash balance on the book

• Some cheques issued by you were not presented by the party to your bank so not debited to your bank account (called un presented cheques)
• Some cheques deposited by you in your bank for clearance were actually not credited to your account by bank (called un credited cheques)
• Bank had charged some charges against its services not booked in your books
• Bank has made some payments on your behalf on your standing instructions when you have not entered these payments in your books
• Bank had received some amounts on your standing instructions when you have not entered these receipts in your books

These are the Cases  :

* Checks Or transfers Happened By your company and still not presented in Bank .

* Some charges by the bank or even checks or transfers not presented in your books .

* any deposits happened by the bank not presented or recorded in your books .

* Mistakes in bank or In your Side

Wrong transfers in bank statements (B/S), direct debit of charges in B/S, clearing procedures, transmission/transcription errors on books, non-posting of any transaction on books, any foreign currency translation difference.

1.there is any transaction still not writen in cash book but in the bank of book is recognized it

2.expense of the interest and interest income still not recognized it in the cash book but its recognize as the income and expense in the bank of books.

it must be take attention when you input the data of the transaction in the cash of book you must completed of the evidence transaction such as : voucher, Purchasing Order,Delivery order,Invoice and receiving notes. it has any objective to control your cash and so that there is no fraud and deception in your book cash.

The main reasons causes the difference are; -Outstanding checks -Deposits in transit Bank service charges, check printing charges, errors on the books, errors by the bank, electronic charges on the bank statement not yet recorded on the books, and electronic deposits on the bank statement that are not yet recorded on the books.

Some reasons that cause the difference of the books balance from the bank balance would be bank/service charges, interest earned, and book errors, if any.  Whereas for the difference of the bank balance and book balance would be outstanding checks,  deposit in transit and bank errors, if any.