Causes of Discrepancies Between Cash Book And Bank Statement - SS2 Accounting Lesson Note
The causes of discrepancies between a cash book and a bank statement can include:
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Timing differences: Transactions may have been recorded in the cash book, but not yet processed by the bank, or vice versa.
Errors in recording: There may have been errors in recording transactions in either the cash book or the bank statement.
Bank charges and interest: The bank may have deducted fees or added interest, which may not have been recorded in the cash book.
Outstanding checks or deposits: Checks or deposits may have been recorded in the cash book, but not yet cleared by the bank.
Fraud or theft: Unauthorized transactions or theft may have occurred, leading to discrepancies between the two records.