Explain the Causes of differences between cash book balance and bank statement balance( pdf)?

Differences between cash book balance and bank statement balance can arise due to various factors, including timing discrepancies, such as outstanding checks that haven't cleared or deposits in transit that are recorded in the cash book but not yet reflected in the bank statement. Additionally, bank fees or interest earned may be recorded in the bank statement but not yet in the cash book. Errors in recording transactions or bank reconciliations can also contribute to these differences. Overall, regular reconciliations help identify and rectify these discrepancies.