[Question] Computer Bank balance does not agree with cashbook balance

[Xoli]

Hi,

Please kindly assist.

I am in a process of doing my monthly bank reconciliation for petty cash and current bank account and I am stuck. The reconciled bank balance and the computer bank balance are the same, they reflect the actual bank balance , however , my cashbook balance is totally different from these three balances.

Tried to reverse some of the entries and its either , my cashbook balance will match with the actual bank statement balance and the computer balance will be different or vise versa.

What can I do to rectify this?.

Thank you in advance.

[rh1]

Hello Xoli

I am not accountant or bookkeeper. But why would you reverse you entries, the purpose of the Bank Reconciliation is to identify differences between your records (Cash Book) and the bank records (bank statement balances) and ensure that the differences are due to valid reasons, i.e mainly timing differences for example: sometimes I pay with my bank card at a shop, I receive an SMS saying the transaction went through, however the transaction will only reflect on my actual bank account a few days later.

Typical differences could be bank charges, interest (normally only on your Bank Statements) but not on your records (cash book) etc.

So my advice is to go to your accountant/bookkeeper. This part of their normal monthly duties. In bigger organisation they have clerks whose main job is to reconcile cash books to bank statements on a daily basis.