All 26 Bank Reconciliation questions
More in Bank Reconciliation
What is a direct debit and how does it appear in reconciliation? What is a standing order? What is a credit transfer (bank giro) received? What documents are needed to perform a 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 bank errors feature in a reconciliation? How do you reconcile when starting from the cash book balance instead of the statement?
Advertisement
Back to results for “Cash Book & Petty Cash”
Bookkeeping › Bank Reconciliation

What does 'reconciling item' mean?

Beginner

Answer

A reconciling item is any difference between the cash book and bank statement that must be listed to explain why the two balances differ—such as unpresented cheques, outstanding lodgements, bank charges, or errors. Listing and explaining each is how the reconciliation proves the balances agree once adjusted.
Real-world example Unpresented cheques and bank charges are the reconciling items bridging the cash book and statement.

Common follow-ups: Give examples of reconciling items. | What is their purpose in the statement?

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