Mark has done the accounts for his local basketball club for a number of years. You joined the club in the last year and as you have studied some accounting Mark has asked you to help him with the accounts. You note that when doing a bank reconciliation Mark changes the accounts of the basketball club so that they show the same month end cash balance as the bank statement even though there are outstanding deposits and cheques. Mark believes he is correct as the bank must be correct so he needs to agree with its balance. Explain to mark why the basketball club’s cash balance may be different from the bank statement and yet be the correct balance.