Accounting · Original fictional case
Explain a bank-to-book difference with a timing bridge
The bank statement and cash ledger disagree at month end. Use the listed timing items and unrecorded bank fee to bring both balances to the same cutoff.
Related work: Bookkeeping, Accounting, and Auditing Clerks · O*NET task 2496.
Your source data
| item | usd |
|---|---|
| Bank ending balance | 1450 |
| Deposit in transit | 200 |
| Outstanding check | 150 |
| Book ending balance | 1525 |
| Unrecorded bank fee | 25 |
The rules
- The deposit is already in the books but not yet in the bank statement. Add it on the bank side only.
- The outstanding check has already reduced the books but has not cleared the bank. Subtract it on the bank side only.
- The bank fee has reduced the bank statement but is missing from the books. Subtract it on the book side only.
A method you can reuse
- Start a bank-side column with 1450. Add the deposit in transit and subtract the outstanding check.
- Start a separate book-side column with 1525. Record the missing fee as a 25 decrease.
- Compare adjusted balances. Keep each timing item in the reconciliation note; do not enter it twice into the ledger.
A common wrong turn
Adding the in-transit deposit to both sides would double-count a deposit already recorded in the books.
Use it in a handoff
For a real review, retain evidence of subsequent clearing and investigate any unexplained difference. Do not invent a balancing adjustment.
Check your calculation
Enter numbers without currency or percent symbols. A matching result confirms this exercise’s calculation; keep the method in your review note.
See the worked answer
Adjusted bank balance (USD): 1500
1450 + 200 − 150 = 1500.
Adjusted book balance (USD): 1500
1525 − 25 = 1500.
Adjusted bank minus book (USD): 0
The listed items fully explain the difference.
Source and practice material
Occupational context uses the O*NET® 31.0 Database from the U.S. Department of Labor, Employment and Training Administration, under CC BY 4.0. View the occupation.
Skill Workbench selected and adapted the occupational information and added its own fictional cases, calculations, guidance and worksheets. USDOL/ETA has not approved, endorsed or tested these additions. O*NET® is a trademark of USDOL/ETA.