Explanation

Bank deposits do not typically cause discrepancies between the cash book and bank statement balances. When a deposit is made, it should appear in both records, so it does not create a difference.

Bank charges cause discrepancies because the bank deducts them automatically, but the business may not know about them until receiving the bank statement. The cash book shows a higher balance until the charges are recorded.

Errors in either the cash book or bank statement can cause discrepancies. These might include wrong amounts, missed entries, or duplicate entries. They need to be identified and corrected.

Standing orders are automatic payments set up with the bank. The bank makes these payments on set dates. If the business forgets to record them in the cash book, the balances will not match. Unlike deposits, these items cause genuine timing or recording differences.