Henry reconciles his checkbook with his bank statement and prepares a bank reconciliation for January as follows.
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Henry begins by entering his bank statement balance.
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Henry compares the deposits listed on the bank statement with deposits shown in his checkbook. Two deposits shown in his checkbook - $701.33 and $516.08 - were not on his bank statement. He enters these two amounts on the bank reconciliation. He adds them to the bank statement balance of $1,458.12 to arrive at a subtotal of $2,675.53.
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After comparing each canceled check with his checkbook, Henry found four outstanding checks totaling $526.50. He subtracts this amount from the subtotal in (2). The result of $2,149.03 is the adjusted bank statement balance.
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Henry enters his checkbook balance on the bank reconciliation.
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Henry discovered that he mistakenly entered a deposit of $600.40 in his checkbook as $594.40. He adds the difference ($6.00) to the checkbook balance of $2,153.03. There was a $10.00 bank service charge on his bank statement that he subtracts from the checkbook balance. The result is the adjusted checkbook balance of $2,149.03. This equals his adjusted bank statement balance computed in (3).
The only book adjustment Henry needs to make is to the Check Disbursements Journal for the $10 bank service charge. He does not need to adjust the Monthly Summary of Cash Receipts because he correctly entered the January 8 deposit of $600.40 in that record.
Information courtesy of the Internal Revenue Service.
Sample Record System:
Daily Summary of Cash Receipts
Monthly Summary of Cash Receipts
Check Disbursements Journal
Employee Compensation Record
Annual Summary
Depreciation Worksheet
Bank Reconciliation
