Items appearing on Cashbook and not reflected on bank statement.

Unpresented Cheques: Cheques issued by the firm for payment to the creditors or to other supplies but have not been presented to the firm’s bank for payment.
Uncredited deposits/cheques: These are cheques received from customers and other sources for which the firm has banked but the bank has not yet availed the funds by crediting the firm’s account.

Errors made in the cashbook
These include:

  • Payments over/understated
  • Deposits over/understated
  • Deposits and payments misposted
  • Overcastting and undercasting the Bal c/d in the cashbook.

Items appearing in the bank statement and not reflected in the cashbook:
Bank charges: These charges include service, commission or cheques, interest charges on overdrafts.
Direct Debits (standing orders) e.g. to pay Alico insurance.
Dishonored cheques
A cheque would be dishonored because:

  • Stale cheques
  • Post – dated cheques
  • Insufficient funds
  • Differences in amounts in words and figures.

Direct credits
Interest income/dividend incomes
Errors on the Bank Statement (made by the bank).
Such errors include:

  • Overstating/understating.
  • Deposits
  • Withdrawals
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