Answer:
The items that need to be reconciled between the company general ledger and the bank statement are:
- Deposits in transit (uncredited deposits)
- Outstanding checks (unpresented checks)
- Interest received
- Direct payments into bank
- Standing orders by the bank customer
- Bank charges
- No Sufficient Fund (NSF) Checks (dishonored checks)
- Posting and other errors
Step-by-step explanation:
The bank reconciliation practice is one that ensures the agreement of the cash account balance, which is maintained by the bank customer and the bank statement balance maintained by the bank. The above listed items are the usual items for reconciliation between the two accounts.