I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

Bank charges or bank interest. The bank might deduct charges for interest on an overdraft or for 

its services, which you are not informed about until you receive the bank statement. 

(c) 

Timing differences 

(i) 

There might be some cheques that you have received and paid into the bank, but which 

have not yet been 'cleared' and added to your account. So although your own records show 

that some cash has been added to your account, it has not yet been acknowledged by the 

bank – although it will be soon once the cheque has cleared. 

(ii) 

Similarly, you might have made some payments by cheque, and reduced the balance in 

your account in the record that you keep, but the person who receives the cheque might 

not bank it for a while. Even when it is banked, it takes a day or two for the banks to 

process it and for the money to be deducted from your account. 

If you keep a personal record of your cash position at the bank, and if you check your periodic bank 

statements against what you think you should have in your account, you will be doing a bank 

reconciliation. 

A