All 26 Bank Reconciliation questions
More in Bank Reconciliation
What are the steps to prepare a bank reconciliation? Which differences require an adjustment to the cash book and which do not? How does a bank reconciliation help detect fraud or error? What causes a bank reconciliation not to balance and how do you investigate? How do you reconcile when starting from the cash book balance instead of the statement? What is the correct order: update the cash book first or reconcile the statement first? How does electronic/online banking change the reconciliation process? How do you treat interest received and charged in the reconciliation? How do you deal with stale or cancelled cheques in a reconciliation? How does the bank reconciliation interact with the financial statements?
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Bookkeeping › Bank Reconciliation

How do bank errors feature in a reconciliation?

Intermediate

Answer

Occasionally the bank makes an error (wrong amount, wrong account, duplicated entry). Such items are not corrected in the cash book; instead they're shown as reconciling items and queried with the bank, which issues an adjustment. The reconciliation notes them until the bank corrects its records.
Bank debits 50 in error -> list as a reconciling item and query the bank.
Real-world example A cheque debited twice by the bank is flagged in the reconciliation and referred to the bank to fix.

Common follow-ups: Do you adjust the cash book for a bank error? | How is it resolved?

Cash Book & Petty Cash Correcting Errors Bank Reconciliation
All 26 Bank Reconciliation questions