the balance of cash is likely to differ from the bank statement balance. what two factors are likely to be responsible for the differnce?
Broadly speaking, the 2 factors why the balances may not be the same are: 1. Items in the bank statement which are not in your cash book e.g. bank charges or overdraft interest 2. Items in your cash book which are not in the bank statement e.g. deposits not yet credited and cheques not yet presented by the payee.