How to Reconcile a Checkbook

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Tips on How to Reconcile a Checkbook....5

How to balance your checkbook by balancing your checking account in these free how to video clips.

Part of the Video Series: How to Balance a Checkbook
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Video Transcript

Hi! In the last clip we showed you what items you wanted to have before you actually sat down to reconcile your checkbook. In this clip we’re actually going to show you the first step in reconciling your checkbook. I have the current month statement in front of me and the first thing that I’m going to do is take my checkbook register and my bank statement and I’m going to check off what items are in my register that also show up as cleared on my statement, so this is a copy of the register I chose a simple statement here that just had a few transactions just so we can give you an example that isn’t too complicated. So what I’m going to do is take my first transaction I’m going to say of the month that was written to Jewel for $3.15 and if you see here the code that I wrote in was DC so that means that it was a debit card transaction, so basically this 3.15 I’m going to check on my statement to see if I show that transaction cleared and on my statement here you can see on the 26th for 3.15 electronic transaction from Jewel did clear my checking account, so then what I’m going to do is next to this transaction where this little checkmark is I’m going to put a checkmark there and that means that that transaction cleared my checking account. So then we’re going to move on to the next transaction a deposit that was made on August 3rd AD which if you check up here means automatic deposit for $50 which was written in the deposit column here, so then I’m going to pick up my statement here I’m going to see then 8/3 a $50 deposit was credited to my checking account, so I’d go back to my register, find the deposit here and then that one again I would check off as an item that had cleared. Now the next thing on here was a check that was check number 101 written on 8/3 I have my description here who it was written to and then the amount was $5 and if I go to my statement here and I look at my transactions I see that that check did not clear the account. A lot of times when you write a check whoever you write it to has up to six months to cash that check especially if you write that check to a person as oppose to a store or a business tends to take a little bit longer to clear it, it depends on how long it takes that person to actually go to their bank to make that deposit. So since that item hasn’t cleared my checking account yet I’m not going to put a check here because I know that that item is still outstanding meaning that the bank isn’t going to show the debit of $5 in my account even though I have it in my register, it’s not posted to my checking account statement yet. And then the very last transaction here was made on 8/3 a visa payment and that I did check the statement and that one did clear as well. So now that we’ve checked off to see if all the debits and deposits were made and recorded on my big bank statement we’ll move on to the next step which is reconciling to see if the amount that we have in our checkbook register is correct.

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