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

Joined
Sep 27, 2019
Messages
1
Reaction score
0
Country
Canada
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.
 
Joined
Mar 7, 2015
Messages
4
Reaction score
1
Country
United States
No it doesnt. You can have open items such as checks not deposited or deposits in transit.
 
Joined
Sep 29, 2019
Messages
1
Reaction score
0
Country
United States
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.
 
Joined
Jun 13, 2019
Messages
13
Reaction score
1
Country
United States
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.
 
Joined
Sep 23, 2019
Messages
7
Reaction score
0
Country
Canada
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.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Members online

No members online now.

Forum statistics

Threads
11,790
Messages
27,864
Members
21,810
Latest member
abibuskamoNon

Latest Threads

Top