Balance as Per Books
It is a term used for the amount of bank balance shown in the company’s general ledgers. For a sole proprietor, this is the amount that usually appears in the owner’s own check register. It is common for the balance of company’s bank appearing in the general ledger to not agree with the balance appearing on the statement issued by bank as of the same day. This usually happens when there are checks that are yet to be cleared by bank but already recorded in the company’s ledgers. It also occurs when a receipt or payment appearing in the bank statement is yet to be recorded in the entity’s ledgers. It is necessary to reconcile the balance per books with the balance per bank as they are seldom the same at any given time.