Explanation Bank statement: This is a periodic or monthly statement issued by bank reporting the account summary of transactions done by the account holder. Reasons for the difference: The deposits which are not recorded by the bank are referred to as deposits in transit. The deposits in transit are not reflected on the bank statement. Outstanding checks are the checks that are issued by the company, but not yet paid by the bank. When the check is issued for payment, the company deducts the cash balance immediately. But the bank deducts only when the cash is paid for the issued check. The receivables collected by bank, are credited to the customer’s bank account...

College Accounting (Book Only): A Career Approach

12th Edition

ISBN: 9781305084087

Author: Cathy J. Scott

Publisher: Cengage Learning

See similar textbooks

Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

Chapter 6, Problem 4DQ

To determine

Indicate the main reason for the difference between the cash balance in the Cash account of the company and the cash balance on the bank statement.

Expert Solution & Answer

Chapter 6 Solutions

College Accounting (Book Only): A Career Approach

Ch. 6 - Prob. 1QY Ch. 6 - Prob. 2QY Ch. 6 - Which of the following does not explain the...Ch. 6 - What is the journal entry to record an NSF check,...Ch. 6 - Prob. 5QY Ch. 6 - Prob. 6QY Ch. 6 - Prob. 7QY Ch. 6 - Prob. 8QY Ch. 6 - Prob. 1DQ Ch. 6 - Prob. 2DQ

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Which of the following does not explain the differences between the bank statement balance and the customers cash balance? a. Deposit in transit b. Canceled checks c. An NSF check d. Errors e. Interest income
Which of the following items are found on a book side of the bank reconciliation? A. beginning bank balance B. outstanding checks C. interest income D. error made by bank
What should be done if differences are found between the bank statement and the book account?

Recommended textbooks for you

College Accounting (Book Only): A Career Approach
Accounting
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:South-Western College Pub
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
Auditing: A Risk Based-Approach (MindTap Course L...
Accounting
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Cengage Learning
Auditing: A Risk Based-Approach to Conducting a Q...
Accounting
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:South-Western College Pub