2. To reconcile a bank statement you
need to compare a transaction record
to the bank’s statement in order to
make sure there are no mistakes.
3. When reconciling you are finding
transactions on the transaction record
that are not on the bank statement,
and also finding transactions on the
bank statement that are not on the
transaction record.
4. Once you have determined what the
missing items are you account for
them in the statement of
reconciliation and the final balances
should then match up.
5. Here is a statement the bank will
send you at the end of the month
6. Here is the record kept by the person
for the same month.
11. Step 2: write in the final balance shown
on both records. Our goal is to make
them the same.
145. 51 199.15
12. Step 3: Add any deposits that are
missing from the bank statement.
145. 51 199.15
87.00
232.51
13. Step 4: Subtract any cheques that
the bank has not yet cashed.
145. 51 199.15
87.00
232.51
14.95
5.03
4.95
17.93
42.86 42.86
189.65
14. Step 5: Subtract all withdrawals which
are not shown on your record.
145. 51 199.15
87.00 9.50
232.51
14.95
5.03
4.95
17.93
42.86 42.86
189.65 189.65
15.
16. If the final balances are the same
then all is well. If they are not, some
error has occurred. Maybe you made
a mistake, maybe the bank did.
