All 26 Bank Reconciliation questions
More in Bank Reconciliation
What is the adjusted (corrected) cash book balance? How often should bank reconciliations be performed? What is a direct debit and how does it appear in reconciliation? What is a standing order? What documents are needed to perform a bank reconciliation? What does 'reconciling item' mean? What are the steps to prepare a bank reconciliation? Which differences require an adjustment to the cash book and which do not? How does a bank reconciliation help detect fraud or error? What causes a bank reconciliation not to balance and how do you investigate?
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Bookkeeping › Bank Reconciliation

What is a credit transfer (bank giro) received?

Beginner

Answer

A credit transfer is money paid directly into the business's bank account by a customer or third party (e.g., BACS/bank transfer). It may appear on the statement before being recorded, so the cash book is updated (debit bank, credit the customer/receivable or income) during reconciliation.
Customer transfer 400: Dr Bank 400; Cr Debtor 400.
Real-world example A customer's bank transfer shows on the statement and is then posted to clear their sales ledger account.

Common follow-ups: Which side of the cash book records it? | Why might it appear first on the statement?

Cash Book & Petty Cash Sales & Purchase Ledgers Bank Reconciliation
All 26 Bank Reconciliation questions