Page 30 - CalcBus_Flipbook

3-20 Everything Decimals CH 3]

at the time of deposit. If there is a difference in the amount of a check recorded by the
bank, it is probably due to a recording error in the accounting records. If so, adjust the
record of the deposit. If the bank made an error, contact the bank with this
information and a copy of either their printed statement or deposit receipt including
the difference as a reconciling item.

5. Bank service charges
Deduct bank service charges. Service charges could be account maintenance fees,
check overage fees that are levied when writing more checks than are allotted for the
account in a month, for wire transfer charges, returned check fees, etc.

6. Interest Earned
Add interest earned the bank pays when the account is an interest bearing
account.

7. Check Register Errors
The capital Add or deduct errors in the check register. These errors could include posting a
Greek letter Sigma in payment that was not actually a cash transaction, or omitting a payment, and
mathematics is used correcting for recording errors such as transposition of numbers, i.e. you wrote
to denote or instruct $123.45 in the check register and the actual amount clearing the bank is $123.54.
that all numbers of the
set are added together Reconciling an account. Let’s think through the arithmetic of reconciling a bank
for a Total Sum. Thus statement to the check register. From the banks side they have the beginning balance
deposits is an and add to that balance all deposits made to the account. Then all charges to the
expression to instruct
that all deposits are account are subtracted from the account which include WEB transactions, checks
added together and written and service fees to arrive at and ending balance. Thus the bank reconciliation
that sum is reported. stated arithmetically is:

In English we would Beg. Bal. + deposits — web transactions — checks — service fees = ending balance.
say, the () SUM
TOTAL of the The check register is reconciled by adding deposits not already recorded in the
deposits. check register, and subtracting the WEB transactions and the bank service fees. This
calculation corrects the register balance and is referred to as the Reconciled Check
register. Thus the check register reconciliation stated arithmetically is:

Last balance + deposits not recorded — web transactions — service fees = corrected balance

These reports, the bank statement and check register, are reconciled when the final
corrected balances are equal to each other.

Reconciled Bank Statement Balance = Reconciled Check Register Balance

In the example below, you are given specific information and will reconcile the bank to the
check registry.

Example:
Bank
Checkbook Statement Service WEB Outstanding
Balance Balance Charge Payments Checks Other Adjustments

1. $1,088.97 $546.78 $7.45 $130.00, $95.00 $80.10; $61.25; Deposit of $529.29 not
$31.20; $47 entered on bank statement.

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