The Bank Reconciliation Statement

Chapter 20

The Bank Reconciliation Statement

Glossary

Amounts not yet credited

Cheques and cash received that have been paid into the bank and entered in the cash book but which have not yet been credited on the bank statement.

Bank reconciliation statement

Statement which reconciles the balance shown in the cash book at the end of a given accounting period with that shown on the bank statement/passbook supplied by the bank.

Cheques not yet presented

Cheques drawn that have been sent to the payee and entered in the cash book but which have not yet been presented to the bank for payment.

Outstanding cheques

Cheques drawn that have been sent to the payee and entered in the cash book but which have not yet been presented to our bank for payment or which have not yet passed through the bank clearing system and thus do not appear on the bank statement at the end of the accounting period when the bank reconciliation statement is being prepared.These are otherwise known as unpresented cheques.

Outstanding lodgements

Cheques and cash received that have been paid into the bank and entered in the cash book but which have not yet been credited on the bank statement. These are otherwise known as unpresented lodgements.

Unpresented cheques

Cheques drawn that have been sent to the payee and entered in the cash book but which have not yet been presented to our bank for payment or which have not yet passed through the bank clearing system and thus do not appear on the bank statement at the end of the accounting period when the bank reconciliation statement is being prepared.These are otherwise known as outstanding cheques.

Unpresented lodgements

Cheques and cash received that have been paid into the bank and entered in the cash book but which have not yet been credited on the bank statement. These are otherwise known as outstanding lodgements.

Unrecorded cheques

Paymentsthat are on the bank statement but which have not been entered in the cash book.

Unrecorded lodgements

Receipts that are on the bank statement but which have not been entered in the cash book.