Bookkeeping › Bank Reconciliation

How do bank errors feature in a reconciliation?

Intermediate

Answer

Occasionally the bank makes an error (wrong amount, wrong account, duplicated entry). Such items are not corrected in the cash book; instead they're shown as reconciling items and queried with the bank, which issues an adjustment. The reconciliation notes them until the bank corrects its records.
Bank debits 50 in error -> list as a reconciling item and query the bank.
Real-world example A cheque debited twice by the bank is flagged in the reconciliation and referred to the bank to fix.

Common follow-ups: Do you adjust the cash book for a bank error? | How is it resolved?