Generally, it is seen that the bank book of the company and the statement of the bank show different balances on a particular dates. It is quite possible because the difference in balances as per the company and as per the bank may be due to the following reasons:-

  1. Cheques issued by the company but not presented in to bank.
  2. Cheques deposited in to bank but not cleared.
  3. Any bank charges or commission or other service charges debited by bank but not entered by the company.
  4. Any interest credited by the bank but no entry passed by the company.
  5. Any direct payment made by the bank but not entered by the company.
  6. Any amount received by the bank directly and credited the account of company but the company did not pass any entry for the same.
  7. There may be totaling mistakes from either side.
  8. Any mistake while carrying forward the balances from either side.
  9. Any wrong amount debited by the bank.
  10. Any wrong amount credited by the bank.
  11. Any wrong amount debited by the company.
  12. Any wrong amount credited by the company.
  13. Any wrong entry done by the Bank.
  14. Any wrong entry done by the company.

There may be so many reasons other than above mentioned reasons for not matching the balances of bank book maintained by the company and the bank statement which come in to focus in practical life of an accountant from time to time.

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