What you'll learn
How to reconcile the bank and check the ledgers.
Key ideas
- Bank reconciliation compares the cash book with the bank statement.
- Unpresented cheques and uncredited lodgements cause differences; an overdraft is money owed.
- Control accounts (sales/purchases ledger) check totals and help find errors.
Exam tips
- Learn what causes reconciliation differences.
- Explain how control accounts detect errors.
Common mistakes
- Confusing unpresented cheques and uncredited lodgements.
- Mixing up the two control accounts.