Balance a Checkbook to a Bank Statement

"Hi! This is Summer on behalf of expertvillage.com in this clip we’re going to use an actual example, plug in the numbers on the reconciliation form that we discussed in the previous clip and make sure that that bank statement balances to what we have in our register here. So the first thing we’re going to do if you remember from our reconciliation form that we had created we’re going to take the ending statement balance, so I’m just going to pick up this bank statement here and if you notice this statement actually gives you a profile of the month and on there if we look here it’ll show the ending balance for the month which shows up as $10 so I’m just going to write that in and then the next item that we had on our reconciliation form is outstanding deposits, now we already went over and checked everything off and we found out that we do not have any outstanding deposits so we’re just going to put a zero there and then the next item was outstanding debits and or checks if you remember from the previous clip there was one outstanding check that we had in our register that had not posted to our bank statement and that was check number 101 and it was written for $5, so I’m going to go ahead and write the $5 on my reconciliation form as an outstanding debit. So our ending statement balance which showed up as $10 that is what our bank statement showed that we had in our checking account, the outstanding deposits which when we checked off what actually cleared our register we realized that there was zero deposits that we outstanding, outstanding debits and or checks we realized that there’s one check that’s written in our register that does not show up in our bank statement and that check is for $5, so we’re going to take the ending statement balance and subtract the outstanding check and we’re going to come up with what should be our statement balance which again I just choose a very simple example here so it’s easy to follow along, obviously the $10 statement balance minus the $5 outstanding check gives us a balance of $5. So when we check our register we see that after the last transaction was made we kept a running tally here using a calculator and got an ending balance of $5 which is correct, if we add in that $5 outstanding check it balances to what our checkbook statement shows."