The Bank Reconciliation Process

PREPARED BY:

DATE PREPARED:

(1) Enter General Ledger and Bank Statement ending cash balances………… Add to Bank balance each G/L deposit not checked-off on bank statement (Deposits-in-Transit):

Deposits In Transit do not affect the G/L balance. Do not enter any amounts in G/L column.

(2) Total General Ledger Deposits-in-Transit (increases Bank balance)

Deduct from Bank balance each G/L check not checked-off on bank statement (Outstanding Checks):

Outstanding checks do not affect the G/L balance. Do not enter any amounts in G/L column.

(3) Total General Ledger Outstanding Checks (decreases Bank balance) Add DEPOSIT or CREDIT items on Bank Statement not checked-off on General Ledger

ATM Deposits

Bank Credits have been recorded on the company's books. Electronic Funds Transfers In

(4) Total Bank Credit items (increases General Ledger cash balance)

Deduct WITHDRAWAL or DEBIT items on Bank Statement not checked-off on General Ledger

Interest Expense

Service Charges

ATM Withdrawals Bank Debit have been recorded on the company's books.

(5) Total Bank Debit items (decreases General Ledger cash balance)

Reconciled balances - General Ledger and Bank cash balances must agree

(6) Adjusted General Ledger and Bank Statement ending cash balances……