BANK RECONCILIATION MISSING APPROACH

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In the missing approach, first of all, we dig out missing or error items. After that find that it is missing of cash book or bank statement. Finally, analyze whether it is missing debit or credit.

Represented / Outstanding / Not cashed or Uncashed cheques
Cheque issued (for payments) by business but not presented for payment. A cashier may send cheques out to suppliers, some of whom may present cheques at the bank immediately while others may keep the cheque for several days. The cashier will have recorded all the payments in the cash book immediately when issuing the cheques. However, the bank records will only show the cheques that have actually been presented by the suppliers.

Uncredited / Uncollected / Uncleared or Outstation cheques
Check deposited (for receipts) but not collected by the bank. The firm's cashier records a receipt in the cash book as he or she prepares the bank paying-in slip. However, the receipt may not be recorded by the bank on the bank statement for a day or so.

Bank charges
The bank charges some amount from each customer by way of incidental charges, collection charges or interest on overdraft, etc. Bank debited the amount in the passbook. But the customer comes to know about it only at the end of the month.

Interest credit by a bank
When the bank allows interest to a customer, it credits the customer's account. But the customer comes to know about it only at the end of the month then he would pass the appropriate entry.

Direct deposits to bank
When the bank has received a direct amount on the behalf of the business. Bank will have recorded the receipt in the business's account at the bank but the business will be unaware.

Direct payment by bank
Bank may have deducted items from the customer's account, but the customer may not be aware of the deduction until the bank statement arrives. Examples of these deductions include standing orders and direct debit payments.

Check dishonored
Cheques may be dishonored due to so many reasons. It is missing of cash book reverse impact as recorded before dishonored.

Errors and omissions
Sometimes the difference between the two balances may be accounted for by an error or omission on the part of the bank statement or in the cash book of the business. Find the missing in order to rectify error or record omission

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