Hi Kate,

I assume you're doing accruals based accounts.

What seems undeniable is that the income was earned in the year ended 31 July. It sounds like services/goods were supplied in that year and the customer paid for them in that year. What you have, then, is an outstanding lodgement in the bank reconciliation as at 31 July. In the books of account you will have counted £156 as a debit to the bank balance on 31 July with the credit to income or the creditors control account (if an invoice had first been raised on a customer account). If the receipt doesn't actually appear on the bank statement until 4th August, it is a reconciling item on the reconciliation between the bank statement and the book bank balance. Perfectly OK and with no implications for the treatment in the accounts.

I hope this helps.

Kind regards,  

Shabana wrote:

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A reconciling item is a difference between balances from two sources that are being compared. These items are stated in an account reconciliation, so that the balance from one source is adjusted by reconciling items to arrive at the balance from the other source. Examples of reconciling items in a bank reconciliation are deposits in transit and uncashed checks. Some reconciling items may require adjustment to the records of the recording entity, such as an uncashed check fee that has been imposed by the entity's bank.

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Did not answer the question posed.