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Accounting Notes
Bank Reconciliation:
Step 1: Identify outstanding deposits and bank errors that need to be added to the current bank
statement balance.
Step 2: Identify outstanding checks and bank errors that need to be subtracted from the current
bank statement balance.
Step 3: Identify amounts collected by the bank (notes), amounts ad ded t o ou r balance by t he bank
(interest on account), and any errors made by the company, when recording the
transactions, that need to be added to the current book balance.
Step 4: Identify bank service charges, NSF checks, and any errors made by the company that
need to be subtracted from the current book balance.
Bank Reconciliation format:
Bank Books
Balance $X Balance $X
Add: Add:
Outstanding Deposits X Bank Collections X
Bank Errors X Interest Revenue X
EFT Receipts X
Book Errors X
Subtotal $X Subtotal $X
Less: Less:
Outstanding Checks X Service Charges X
Bank Errors X NSF Checks X
EFT Payments X
Book Errors X
Adjusted Bank Balance $X Adjusted Book Balance $X
Amounts must balance
Journal entries must be done to record all adjustment s made to the book balance. Fo r all of the
adjustments made to increase the book balance cash will be shown as a debit in the entries. For
all of the adjustments made to decrease the bo ok balanc e cash will be sho wn as a cr edit in t he
entries.
Student Learning Assistance Center, San Antonio College, 2004
Bank Reconciliation, Petty Cash
