Page 29 - CalcBus_Flipbook

CH 3] Calculating Business 3-19

Figure 3.11 Balancing Check Register Examples
In each follow the arithmetic to determine the checking account balance
after each check written or deposit made.
1. Balance ............... 590 88 2. Balance .............. 1159 72
Check No. 302 ........ 75 00 Check No. 326 ........ 16 18
Balance ................ 515 88 Balance ................ 1143 54
Check N o . 303 ...... 10 98 Check N o . 327 ......... 125 36
Balance ................ 504 90 Balance ................ 1018 18
Deposit .................... 819 82 Deposit .................... 857 25
Balance ................ 1324 72 Balance ................ 1875 43
Check No. 304 ........ 3 79 Check No. 328 ......... 53 78
Balance ................ 1320 93 Balance ................ 1821 65
Check No. 305 ........ 15 30 Check No. 329 ......... 25 35
Balance ................ 1305 63 Balance ................ 1796 30
3
Deposit .................... 200 00 Deposit .................... 250 00
Balance ................ 1505 63 Balance ................ 2046 30

the amount of each check written is stated. When reconciling the checks it is important to
have the negotiated check or a copy of the negotiation to identify who the check was written
to and any memoranda information.
The total in Figure 3.10 is for 6 checks and a total value of $3,825.11.

Reconciling the bank statement to the check register.
Remember that many of the items from the check register added to the bank statement
reconciliation will appear on the next bank statement. Similarly, those bank charges on the
bank statement as included and deducted in the check register will bring the check register
balance in line with the bank statement balance. In reconciling the bank statement to the
check register is to have both tally to the same total.
To reconcile a bank statement, follow these steps:

1. Comparison
Start the bank reconciliation process with a comparison of the bank statement and
check register. Place a check mark next to each check in the check register that match the
checks listed on the bank statement and their amounts. This part of the reconciliation
ensures all items are recorded accurately. Once an item clears the bank account, it usually
represents the finality of that particular business transaction.

2. Add Deposits
Note all items that remain on the check register. Match each of the deposits in check
register record to those noted on the bank statement. If the check register records a deposit
that the bank had not yet received or has not listed for in the monthly statement, these are
Deposits in transit; deposits that have been recorded in the check register but have not
appeared on the bank statement. List all such deposits as a reconciling item that should be
added to the bank's ending cash balance for the account.

3. Outstanding Checks
Deduct outstanding checks from the ending balance on the bank statement. These
checks have been deducted from the check register, but have not yet cleared the bank.

4. Statement Errors
Add or deduct any bank errors to the ending balance. Examples would be incorrect
deposit amounts and incorrect debits. To verify an error, compare the bank deposit
receipt signed by the bank officer receiving the deposit and/or a printed statement given

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