Timing differences in bank reconciliation
Timing differences in a bank reconciliation arise when the cash book and bank statement record the same item at different times. Begin with the cash-book balance, enter bank charges or receipts not yet in the books, then reconcile the adjusted balance with the bank statement using outstanding timing items. Check signs carefully, especially when either balance is an overdraft.
Worked example
A cheque recorded in the cash book remains unpresented at year end.
Common mistake
A bank charge missing from the cash book needs a cash-book entry; do not redefine timing differences as reporting periods.
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 |
Related terms
Also called: Time differences
