Discrepancies between the cash balance reported on the bank statement and the cash balance reported in a business’s Cash account in the general ledger at a particular date are known as reconcilingitems and are added or subtracted to either the general ledger Cash balance or the amount of cash shown at the end of the period on the bank statement. The cash balance prior to reconciliation is called the unreconciled cash balance. The balance after adding and subtracting the reconciling items is called the reconciled cash balance. The following is a list of potential reconciling items and their impact on the bank reconciliation.
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General ledger recording items |
Bank recording items |
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