Basic Bookkeeping
Save on Accounting Fees
Lesson 2 - How to Reconcile your Bank Statement - Sample
Bookkeeping Function in Detail
Preparing a bank reconciliation statement on a periodic basis is an important cash control procedure. It serves to verify the balance of cash shown on your books against the balance shown on the bank statement. Those two balances are rarely equal due to timing in recording transactions and errors made by the bank or the depositor. The bank reconciliation can highlight any errors recorded in either your business books or in the bank statements.
How to Calculate
Employee
Payroll Checks »
Instructions and
a list of things you'll need.
This topic demonstrates the process of bank reconciliation
From your Bank Statement (Sample) - Activity for the Month of August 2014 Please note: Our explanation that are provided on our web site for "How to Calculate Futa and Suta taxes" are only meant to provide general guidance and estimates about the payroll process. They should not be relied upon to calculate exact taxes, payroll or other financial data. You should consult with a professional advisor or accountant regarding your specific payroll concerns. Please note: Our explanation that are provided on our web site for "How to Calculate Futa and Suta taxes" are only meant to provide general guidance and estimates about the payroll process. They should not be relied upon to calculate exact taxes, payroll or other financial data. You should consult with a professional advisor or accountant regarding your specific payroll concerns. Bank Statement Sample
Checking Account Statement - Date 8/01/2014 - 8/31/2014
Description
Amount
Item #
Adjustment to Books
Bank balance - Prev's Month Bal.
17,210.55
1
None
7 Debits
-2,441.67
2
Debit expense, credit cash
Service charge
-19.99
3
Debit expense, credit cash
2 Credits
2,210.00
4
Credit Sales, debit cash
1 Counter Check
- 500.00
5
Debit Draw or, Advance, Loan, credit cash
Interest income
5.25
6
Debit cash, credit interest income
Ending Bank Balance - August 31, 2014
16,464.14
7
None
Deposit and Other Credits
8/04 $1,210.00
8/22 $1,000.00
Other Debits
8/25 Aetna Health Ins. Electronic Debit
$227.60
Checks
Ck 997 $87.32
Ck 1001 $57.32
Ck 1002 $600.00
Ck 1003 $145.24
Ck 1004 $995.60
Ck 1005 $250.00
Ck 1006 $78.59
Bank Reconciliation Sample
Bank Name: Your America Bank Account ...4536
Checking Account Statement - Ending 8/31/2014
Amount
Bank balance - Ending Balance
16,464.14
Add: Deposit(s) in transit
2,200.00
Net Amount
18,664.14
Subtract Checks Outstanding:
Ck # Description
1008 Discount Auto
50.00
1009 Peace River Electric
180.00
Deduct Total Checks Outstanding
230.00
Net Ending Bank Balance
18,434.14
General Ledger Balance - Per Your Books
Amount
Book Balance - 7/31/2014
17,123.23
Item # 1
Bank Deposits
2,210.00
Deposits in Transit
2,200.00
Interest Income
5.25
August Cheks Disbursement
- 2,126.75
Checks Outstanding
- 230.00
Bank Charges
- 19.99
Automatic Debit - Aetna
- 227.60
Others - Counter Draw
-500.00
Net Ending Bank Book Balance
18,434.14
Date
Ck #
Description
Amount
Sales
Office Supplies
Rent
Auto Expense
Bank Charges.
Advert.
Repairs
Utilities
Misc.
Equip.
Transaction Details
7/30/2014
997
Ace Hardware
-87.32
87.32
8/01/2014
1001
Office Max
-57.32
57.32
8/01/2014
1002
MG Properties
-600.00
600.00
8/04/2014
Deposits
1210.00
-1210.00
8/08/2014
1003
Bell Telephones
-145.24
145.24
8/14/2014
1004
Office Depot
-995.60
995.60
HP Computer
8/18/2014
Draw
-500.00
500.00
Draw/Advance
8/22/2014
1005
Bank of America
-250.00
250.00
Credit Card Pymt
8/22/2014
Bank of America
5.25
-5.25
Interest Earned
8/22/2014
Deposit
1000.00
-1000.00
Investment//Loan by Owner
8/22/2014
1006
BillBoard Inc
-78.59
78.59
8/22/2014
Bank Charge
-19.99
19.99
Bank Charge
8/245/2014
1007
Void
Voided Check
8/25/2014
Aetna Health Ins.
-227.60
227.60
Auto Withdrawals -
8/31/2014
1008
Discount Auto
-50.00
50.00
Check Outstanding
8/31/2014
1009
Peace River Elec
-180.00
180.00
Check Outstanding
8/31/2014
Deposit
2200.00
-2200.00
Deposit in Transit
Totals
-3410.00
57.32
600.00
50.00
19.99
78.59
87.32
180.00
145.24
995.60
To speak with an Online Payroll expert call 866-729-4460 • 941-756-1700 or contact us by email.
Learn more about managing your business | Independent Contractor | Employee Handbook Information | Acronyms for Payroll | Workers Compensation
