A Method of How to Prepare a Bank Reconciliation Statement

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Reconcile your monthly bank statement upon receipt to your check book register. This will protect you from over drawing your account with the bank or from missing errors that need to be corrected immediately. You need to list down on two separate columns all differences shown between the ending cash balance of your bank statement to the ending balance shown on your check book register. After all differences between the two sets of records are listed, the adjusted balances per each column must be equal to one another.

Things You'll Need

  • Bank statement
  • Check register
  • Bank services requested
  • Column paper
  • Pen
  • Write down the ending cash balance per bank statement on column one and add on separate lines any deposits listed on the check register that are not shown on the bank statement along with any bank errors that would increase the balance of the bank statement.

    Subtract on separate lines any outstanding checks that have not been posted to the bank statement along with any bank errors that would decrease the balance of the bank statement.
    Add and subtract the above adjustments from the ending bank statement balance to arrive at the adjusted cash balance under column one.

  • Write down the ending cash balance per check register on column two and add on separate lines any pending transactions that are credited to the bank statement but are not listed on the check register along with any posting errors for checks made on the check register that are correctly posted to the bank statement for a smaller amount.
    Subtract on separate lines any checks or other deposited items that are debited back per the bank statement but do not appear on the check register along with any posting errors for checks made on the check register that are correctly posted to the bank statement for a larger amount.
    Subtract on a separate line any bank charges that are not reflected on the check register and then add and subtract the above items from the ending check register cash balance to arrive at the adjusted cash balance under column two, which must equal the adjusted cash balance of the bank statement listed per column one.

  • Add any pending transactions to the check register that were credited to the bank statement but not listed on the check register along with any posting errors to the check register for checks that are correctly posted to the bank statement for a smaller amount.
    Subtract any checks from the check register that were debited back per the bank statement but not yet recognized along with any posting errors to the check register for checks that are correctly posted to the bank statement for a larger amount and also subtract any bank charges from the check register that were posted to the bank statement but not yet recognized.
    Notify the bank about any bank errors found during the reconciliation that would increase or decrease the balance of the bank statement as compared to the check register.

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