Sections:

Reconciling the Bank Statement , Page 5

Proving Cash: Identifying Errors

If the cash in the bank balance does not agree with the checkbook balance, then the Trial Balance indicates that there is a possible error in the checkbook. The error in the checkbook could be due to: 

  • Incorrect addition or subtraction 
  • No record made for deposit of cash or a check 
  • A mistake in balance forwarded to the next page

The error in the checkbook may be corrected in the next unused check stub.

The following example explains the concept: 

Check No. 40 for $202 was recorded in the check stub as $102. Now, the next unused check stub is 58. The amount of the error (202 -102 = 100) is subtracted from the balance brought forward on check stub 58. A note is made on check stub 40 to indicate that the error is corrected on check stub 58.