KEY TERMS

Bank reconciliation statement

A statement which reconciles the bank balance as per the bank statement with the balance per the cash at bank general ledger account.

Cash at bank ledger account

A general ledger account that is a record of transactions that have passed through the bank account.

Dishonoured cheques

Cheques which cannot be paid by the bank due to insufficient funds being available in an account - 'bounced cheques'.

Outstanding deposits (lodgements)

Cheques paid into the bank which have not yet passed through the bank's clearing system and so do not show on the bank statement.

Outstanding (unpresented) cheques

Cheques written which have not yet gone through the bank's clearing system and so do not show on the bank statement.

Supplier statement reconciliation

An exercise carried out periodically to ensure that the balances on the individual supplier accounts in the memorandum-only payables ledger agree with the statements received from suppliers.