All 26 Bank Reconciliation questions
More in 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 bank errors feature in a reconciliation? 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? How does the timing of banking affect month-end reconciliation?
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Bookkeeping › Bank Reconciliation

How do you reconcile when starting from the cash book balance instead of the statement?

Intermediate

Answer

You can reconcile in either direction. Starting from the (adjusted) cash book balance: add back unpresented cheques and deduct outstanding lodgements to arrive at the bank statement balance. The reconciling items are the same; only the direction of the adjustments reverses.
Cash book 5,000 + unpresented 600 - lodgements 400 = 5,200 bank statement.
Real-world example The bookkeeper reconciles from the cash book to the statement, reversing the usual adjustment signs.

Common follow-ups: How do the signs change starting from the cash book? | Are the reconciling items the same?

Cash Book & Petty Cash Trial Balance Bank Reconciliation
All 26 Bank Reconciliation questions