Bank Reconciliation Adjustments to Bank Balance
The items that are added to the balance per bank when doing a bank reconciliation include:
- Deposits in transit which include the cash and checks that were received by a company as of the date of the bank statement, but were not deposited in time for them to appear on the bank statement
- Bank errors which resulted in too much withdrawn from the bank account or too little added to the bank account.
[Items that are subtracted from the balance per bank on the bank reconciliation include outstanding checks, and bank errors that when corrected will reduce the bank balance.]