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.
 
Ad

Advertisements

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
9
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.
 
Ad

Advertisements

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

Top