Canada Does cash balance in balance sheet need to be equal to bank statement balance?


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I am a new bookkeeper. I am wondering if cash balance in balance sheet has to be equal to bank statement balance. In advance, your help is greatly appreciated.
 
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No it doesnt. You can have open items such as checks not deposited or deposits in transit.
 
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Yes, it does. The two balances will differ due to items such as deposits in transit, outstanding checks, debit/credit memos, interest earned, bank service charges, NSFs, and recording errors. However, once the adjustments for these items are made, the balances should be equal.
 
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The reason you're getting both answers on this topic is that it actually depends on the circumstances: on any given day you'll probably see them varying from one another quite a bit, but you'll also be making adjustments to cash basis that cause them to be equal when non-posted transactions are taken into account.
 
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To keep things simple, yes you want your book balance to agree to bank less any outstanding items that will deviate the two balances agreeing.
 

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