Reconciling items
Reconciling items explain the difference between two records of the same balance at a given date. For each difference, establish which record is incomplete or incorrect. Update the cash book for bank charges not yet recorded there, while an unpresented cheque already recorded in the cash book is included in the bank reconciliation. Then compare the adjusted balances. A reconciling difference must not be silently forced to balance without an explanation.
Worked example
An unpresented cheque explains why cash book and bank statement balances differ.
Common mistake
Determine whether each item needs a book adjustment, a reconciliation adjustment, or correction of an error.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | F1 | Direct | July 2027–August 2028 |
| ACCA | FA | Direct | September 2026–June 2027 |
| ACCA | K1 | Direct | July 2027–August 2028 |
| CIMA | BA3 | Direct | Official assessment-window verification pending |
| FIA | FFA | Direct | September 2026–June 2027 |