Explanation

When reconciling from cashbook to bank statement balance, add items the bank recorded but you haven’t yet. Unpresented cheques you wrote increase the difference. Dividends and credit transfers the bank received should be added.

Uncredited cheques are deposits you recorded but the bank hasn’t processed yet. These are subtracted, not added, because they inflate your cashbook balance.

Think of it this way: Add what you’re missing. Subtract what you counted too early.