Cash and Cash Equivalents

Cash item

Unrestricted and available funds that qualify for reporting under the account title "Cash" for current operations.

Cash equivalents

Short-term investments maturing in three months or less, highly liquid financial instruments like treasury bills.

Bank Reconciliation Statement

Report reconciling the cash balance in the bank per books with the cash balance per bank statement.

Deposit in transit / undeposited collections

Cash received by the company but not yet received by the bank, already debited to cash.

Outstanding Checks

Checks issued by the company but not yet presented to the bank for payment.

Bank service charge

Charges by the bank not yet recorded by the company.

NSF/DAIF check

Customer's check returned by the bank to the company due to insufficient funds.

Bank Error

Mistaken bank credit or charges.

Book Error

Mistakenly recorded transactions.

Credit Memos

Deposits directly added to the company's account by the bank.

Debit Memos

Charges against the depositor's account made directly by the bank.

PETTY CASH FUND

Cash set aside for small and immediate expenses.