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Outstanding checks - in the company's books as cash...

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Outstanding checks . A check that a company mails to a creditor may take several days to pass  through the mail, be processed and deposited by the creditor, and then clear the banking system.  Therefore, company records may include a number of checks that do not appear on the bank  statement. These checks are called outstanding checks and cause the bank statement balance to  overstate the company's actual cash balance. Since outstanding checks have already been recorded 
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Unformatted text preview: in the company's books as cash disbursements, they must be subtracted from the bank statement balance. Vector Management Group Bank Reconciliation April 30, 20X8 Bank statement balance $8,202 Book balance $6,370 Add: Deposits in transit Less: Outstanding checks 1552 $1,057 1564 245 1565 108 1570 359 1571 802 Adjusted bank balance...
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