{"id":17759,"date":"2021-04-13T13:09:38","date_gmt":"2021-04-13T13:09:38","guid":{"rendered":"http:\/\/csr.questionbank.lk\/?p=17759"},"modified":"2024-12-18T12:58:17","modified_gmt":"2024-12-18T12:58:17","slug":"reasons-why-the-bank-balance-differs-from-the-book","status":"publish","type":"post","link":"http:\/\/csr.questionbank.lk\/?p=17759","title":{"rendered":"Reasons why the bank balance differs from the book balance"},"content":{"rendered":"

\"bank<\/p>\n

The bank balance is an external view of the company\u2019s financial status and can be accessed through bank statements or online banking platforms. The balance on June 30 in the company\u2019s general ledger account entitled Checking Account is the book balance that pertains to the bank account being reconciled. This is the case when there are bank fees or electronic transfers on the bank statement that have not yet been recorded in the company\u2019s general ledger accounts. For example, the bank statement may reveal that a bank service charge was withdrawn from the account on the last day of the month. A bank reconciliation statement can be prepared to summarize the banking activity for an accounting period to be compared to a company’s financial records and book balance.<\/p>\n

\"bank<\/p>\n

The difference between bank balance and book balance<\/h2>\n
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Checks that have been written and sent out but have yet to bank balance book<\/a> clear through the banking system. These deductions would be reflected in the book balance while not yet reflected in the bank account balance. As a result, a company’s book balance would be lower than the bank balance until the checks have been deposited by the payee into their bank and presented to the payor’s bank for payment to the payee.<\/p>\n