Set up the two records
Our fictional bank statement closes at LKR 250,000. The cash ledger closes at LKR 267,000. A LKR 40,000 deposit appears in the ledger but is not yet on the statement. A LKR 25,000 issued payment has not yet cleared.
The statement also contains a LKR 3,000 bank charge and LKR 1,000 interest receipt absent from the ledger. The example assumes those amounts belong to this business and period; checking the underlying statement is still necessary.
Distinguish timing from missing entries
The deposit and unpresented payment are already recorded in the ledger. List them as outstanding items and track clearance rather than entering them again. The missing charge and interest need separate supported ledger entries.
This distinction prevents duplication: re-entering the deposit to make it appear on both sides would increase the ledger without bringing any new money into the bank.
| Item | Comparison action | Evidence |
|---|---|---|
| Deposit in transit | Add to statement comparison | Deposit reference and later clearance |
| Unpresented payment | Subtract from statement comparison | Issued-payment record |
| Unrecorded bank charge | Reduce ledger | Statement charge |
| Unrecorded interest | Increase ledger | Statement receipt |
Review outstanding items next month
Keep the date, reference and expected clearance for each timing item. A deposit that stays outstanding or a very old payment needs investigation; reconciliation is not finished merely because today's totals agree.
If the adjusted balances differ, return to unmatched transactions and opening balances. Preserve the exception and ask for evidence rather than assigning the difference to miscellaneous expenses.
Worked example
Both sides reach LKR 265,000
All figures are illustrative, in LKR, for one fictional reporting date.
- Statement plus depositAdd the recorded deposit in transit.
- LKR 290,000.00
- Adjusted bank balanceSubtract the unpresented payment.
- LKR 265,000.00
- Ledger after bank chargeRecord the supported charge.
- LKR 264,000.00
- Adjusted ledger balanceRecord the supported interest.
- LKR 265,000.00
- Unexplained differenceAdjusted balances agree.
- LKR 0.00
Agreement is a control check. It does not prove that every transaction is correctly classified or authorised.
Frequently asked questions
Should I enter a deposit in transit twice?
No. If it is already in the ledger, keep it on the outstanding-items list and verify later bank clearance.
What if the bank still does not match?
Check opening balances, omissions, duplicates and amount/date mismatches. Leave the unresolved difference visible for review.
Sources and limits
This simplified illustration excludes foreign currency, overdraft presentation and complex adjustments. It is not an audit opinion.
- Finance Desk LK — current service scope
Current service boundaries. Confirm the work, exclusions and quotation in writing before an engagement begins.
Accessed: 2026-10-08