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Sir can u explain this question with clearly?
Which is not an difference when reconciling the balance on the cash book to the amount shown in the bank statement?
It’s bak charges and standing order right?
It depends whether or not they have been entered in the cash account.
If they have been entered then there is no problem.
It is likely that they have not been entered, in which case there is a problem and there will be a difference until they are entered.
Sir, In preparing a bank reconcilation , lodgements recorded before date in the cash book but credited by the bank after date should reduce an overdrawn balance in the bank statement.. but my question is how ?
When the lodgement (money paid in to the bank) appears on the bank statement it will mean that the bank will show a higher balance (or if overdrawn then a lower overdraft).
I do suggest that you watch our free lectures on this. (Our free lectures are a complete course for Paper F3 and cover everything needed to be able to pass the exam well.)
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