Book balance

Book balance,

Definition of Book balance:

  1. The book balance describes the amount of money a company may use to pay vendors and make purchases after adjustments have been made for deposits in transit, checks that haven't yet cleared, reserve requirements, and interest received from float funds, which is money that's briefly counted twice, due to delays in the processing of checks.

  2. Book balance is a banking term used to describe funds on deposit after adjustments have been made for reserve requirements, checks that have yet to clear, deposits in transit, or other pending deductions from an account. In other words, the book balance represents the actual money accessible for a company to spend.

  3. The funds available in a financial account, adjusted for unrealized transactions such as outstanding checks.

Meaning of Book balance & Book balance Definition