Prepared March Bank Reconciliation

I knew you could do it - it's not that tough when you know what you're doing. Let's see if your results are the same as mine. I'm not saying I'm always right, but this time I'm pretty sure. After all I made up this Lesson. Your Reconciled Cash Balance as of March 31 should be $11,670. The analysis of how this figure was arrived at is presented below.

Return To Tutorial

Ma & Pa's Bank Statement for March xxxx

Wehavemoney State Bank
Anywhere Street
Anywhere City, Anywhere State xxxxx
 
Ma and Pa's Antiques
Account Number: 1111111111
Anywhere Street
Anywhere City, Anywhere State xxxxx
 
Balance From Prior Statement 27655
Deposits 11700
Disbursements  
Checks 13575
Bank Fees and Charges 10
Other Drafts & Charges 400
Balance as of Mar 28, xxxxx 25370
 
Deposit Details:
Mar 2 2500 Yes-PM
Mar 5 3500 Yes-CM
Mar 10 1500 Yes-CM
Mar 16 4200 Yes-CM
 
Total Deposits 11700
 
Disbursement Details:
Mar 5 115 300 Yes-PM
Mar 5 122 500 Yes-PM
Mar 6 124 250 Yes-PM
Mar 10 126 1000 Yes-PM
Mar 10 ID 400 X
Mar 4 127 6000 Yes
Mar 5 128 2000 Yes
Mar 11 129 400 Yes - X
Mar 11 130 150 Yes
Mar 15 131 100 Yes
Mar 20 132 2500 Yes
Mar 20 133 250 Yes
Mar 26 134 125 Yes
Mar 28 MSF 10 X
 
Total Checks 13575
Total Bank Charges & Fees 10
Total Other Drafts & Charges 400
 
Total Disbursements 13985

Abbreviations
NSF- Non Sufficient Funds Check - also known as a "bad check" -
CDP- Check/Deposit Ticket Printing Fees
CCF- Credit Card Fees - fees charged for processing credit card transactions
MSF- Monthly Service Charge
ID - Insurance Draft -preauthorized deduction

Ma and Pa's Checkbook for March xxxx.

Date Reference Number Payee / Description Deposit Amount Deduction
Amount
Balance On Bank Statement
Mar 1, xxxx   Beginning Balance     27905  
Mar 2, xxxx Check 127 Bargain Barn   6000 21905 Yes
Mar 4, xxxx Check 128 Ma & Pa   2000 18905 Yes
Mar 4, xxxx Deposit Slip 15 Daily Sales and Collections Report 3500   22405 Yes
Mar 8, xxxx Check 129 Hotwire Electric   300 22105 Yes- X
Mar 8, xxxx Check 130 Talkalot Service   150 21955 Yes
Mar 10, xxxx Deposit Slip 16 Daily Sales and Collections Report 1500   23455 Yes
Mar 12, xxxx Check 131 Smalltown Newspaper   100 23355 Yes
Mar 15, xxxx Deposit Slip 17 Daily Sales and Collections Report 4200   27555 Yes
Mar 15, xxxx Check 132 Old-time Cabinets   2500 25055 Yes
Mar 18, xxxx Check 133 Fancy Ann's Restaurant   250 24805 Yes
Mar 20, xxxx Check 134 Dirtyman Garbage   125 24680 Yes
Mar 27, xxxx Check 135 Refinisher Equipment Sales   15000 9680 No
Mar 27, xxxx Deposit Slip 18 Daily Sales and Collections Report 2100   11780 No
Mar 28, xxxx Check 136 Acme Signs   450 11330 No
Mar 29, xxxx Deposit Slip 19 Daily Sales and Collections Report 750   12080 No
Mar 29, xxxx Check 137 Old Store   1500 10580 No
Mar 30, xxxx Check 138 Nice Landlord   1000 9580 No
Mar 30, xxxx Deposit Slip 20 Daily Sales and Collections Report 1100   10680 No
Mar 31, xxxx Deposit Slip 22 Daily Sales and Collections Report 500   11180 No

Ma and Pa's Checkbook for February xxxx.

Date Reference Number Payee / Description Deposit Amount Deduction
Amount
Balance On Bank Statement
Feb 1, xxxx   Beginning Balance     24965  
Feb 3, xxxx Deposit Slip 10 Daily Sales and Collections Report 3000   27965 Yes
Feb 4, xxxx Check 116 Smalltown Newspaper   500 27465 Yes
Feb 6, xxxx Check 117 Hotwire Electric   650 26815 Yes
Feb 9, xxxx Check 118 Dirtyman Garbage   100 26715 Yes
Feb 11, xxxx ID Insurance Draft   400 26315 Yes
Feb 11, xxxx Deposit Slip 11 Daily Sales and Collections Report 4500   30815 Yes
Feb 15, xxxx Check 119 Old Store   6500 24315 Yes
Feb 15, xxxx Deposit Slip 12 Daily Sales and Collections Report 1500   25815 Yes
Feb 20, xxxx Check 120 Talkalot Service   250 25565 Yes
Feb 23, xxxx Check 121 Cheap Office Supply   100 25465 Yes
Feb 25, xxxx Check 122 Topnotch Shelves   500 24965 No
Feb 25, xxxx Deposit Slip 13 Daily Sales and Cash Report 2000   26965 Yes
Feb 25, xxxx CCF Credit Card Processing Fees   100 26865 Yes
Feb 27, xxxx Check 123 Fixit Right   200 26665 No
Feb 28, xxxx Check 124 Nostink Plumbing   250 26415 No
Feb 28, xxxx Check 125 Void     26415 NA
Feb 28, xxxx Check 126 Nice Landlord   1000 25415 No
Feb 28, xxxx Deposit Slip 14 Daily Sales and Collections Report 2500   27915 No
Feb 28, xxxx MSF Monthly Bank Statement Fee   10 27905 Yes

Ma & Pa's Final Corrected Checkbook for January xxxx

Date Reference Number Payee / Description Deposit Amount Deduction
Amount
Balance Reconciled
Jan 5, xxxx Deposit Slip 1 Opening Balance 25000   25000 (1)
Jan 6, xxxx Check 100 Nice Landlord   1000 24000 (a)
Jan 7, xxxx Check 101 Cheap Office Supply   1500 22500 (b)
Jan 8, xxxx Check 102 Old Store   5000 17500 (c)
Jan 8, xxxx Check 103 Smalltown Newspaper   800 16700 (d)
Jan 9, xxxx Check 104 Hotwire Electric   600 16100 (e)
Jan 10, xxxx Check 105 Fixit Right   400 15700  
Jan 11, xxxx Deposit Slip 2 Daily Sales and Collections Report 2000   17700 (2)
Jan 15, xxxx Check 106 Dirtyman Garbage   100 17600 (f)
Jan 6, xxxx Check 100 Nice Landlord   1000 16600 C-1
Jan 16, xxxx Deposit Slip 3 Daily Sales and Collections Report 1000   18600 (3)
Jan 17, xxxx Check 107 Pretty Brochures   200 18400 (g)
Jan 20, xxxx Check 108 Old Store   600 17800 (h)   (X)
Jan 20, xxxx Deposit Slip 4 Daily Sales and Collections Report 500   18300 (8)  (X)
Jan 23, xxxx Check 110 Sturdy Shipping Crates   750 19050  
Jan 25, xxxx Check 111 Nice Landlord   1000 18050 (i)
Jan 26, xxxx Check 112 Fancy Wholesale Antiques   3000 15050 (j)
Jan 27, xxxx Check 113 Talktoyou Phones   1800 13250  
Jan 26, xxxx Deposit Slip 6 Daily Sales and Collections Report 800   14050 (4)
Jan 28, xxxx Check 114 Talkalot Service   200 13850  
Jan 28, xxxx Deposit Slip 7 Daily Sales and Collections Report 700   14550  
Jan 29, xxxx Check 115 Bean Counter Accounting   300 14250  
Jan 30, xxxx Deposit Slip 8 Daily Sales and Collections Report 2500   16750  
Jan 31, xxxx Deposit Slip 9 Daily Sales and Collections Report 1900   18650  
Jan 31, xxxx Check 108 Adjust Check 108
Recorded wrong check amount
Check's actual amount was 6000
and the amount was
erroneously recorded as 600
  5400 13250 (h)
Jan 10, xxxx ID Record Insurance Draft   400 12850 (k)
Jan 11, xxxx CDP Record Check and Deposit Slip Printing Fees   75 12775 (l)
Jan 14, xxxx CCF Record Credit Card Processing Fees   100 12675 (m)
Jan 19, xxxx NSF Record Check 1083 from our customer Nogood Credit
that was returned as a "bad check"
  500 12175 (n)
Jan 11, xxxx MSF Record Monthly Statement Fee Charged By Bank   10 12165 (o)
Jan 21, xxxx Check 109 Check 109 Not Recorded In Check Book   200 11965 (p)
Jan 8, xxxx Bank Loan Bank Loan Directly Deposited
In Bank Account Not Recorded
5000   16965 (5)
Jan 14, xxxx Credit Card Sales Credit Card Sales Directly Deposited
Into Bank Account Not Recorded
2000   18965 (6)
Jan 25, xxxx Deposit Slip 5 Deposit Slip 5 Not Recorded In Check Book 3000   21965 (7)
Jan 16, xxxx Deposit Slip 3 Deposit Slip 3 Added Incorrectly
in determining the Current Check Book Balance
    <1000>
20965
 
Jan 23, xxxx Check 110 Added Check 101 for $750 to the Check Book Balance but Should Have Subtracted     <1500> 19465  
Jan 20, xxxx Deposit Slip 4 Deposit Slip 4 Recorded In The Check Book
as $500 and Should Have Been Recorded for the
Correct Amount of $5000.
4500   23965 (8)  (X)
Jan 6, xxxx Check 100 Check 100 Erroneously Recorded
Twice In The Check Book
  <1000> 24965 C-1

Ma and Pa's Final Outstanding Check List as of February 28, xxxx

Date Check Number Payee Amount
Jan 29, xxxx 115 Bean Counter Accounting 300
Feb 25, xxxx 122 Topnotch Shelves 500
Feb 27, xxxx 123 Fixit Right 200
Feb 28, xxxx 124 Nostink Plumbing 250
Feb 28, xxxx 126 Nice Landlord 1000
       
Month Totals     2250

Ma and Pa's Final Deposits In Transit as of February 28, xxxx

Date Reference Amount
Feb 28, xxxx Deposit Slip 14 2500
Total   2500

Final Bank Reconciliation -February xxxx

Balance Per Bank 27655 Balance
Per Check Book
27915
Plus:      
Deposits In Transit 2500    
Less:      
Outstanding Checks 2250    
    Bank Statement Fee 10
       
Adjusted Bank Balance 27905 Adjusted Book Balance 27905

Ma and Pa's Final Adjusted Checkbook for March xxxx.

Date Reference Number Payee / Description Deposit Amount Deduction
Amount
Balance On Bank Statement
Mar 1, xxxx   Beginning Balance     27905  
Mar 2, xxxx Check 127 Bargain Barn   6000 21905 Yes
Mar 4, xxxx Check 128 Ma & Pa   2000 18905 Yes
Mar 4, xxxx Deposit Slip 15 Daily Sales and Collections Report 3500   22405 Yes
Mar 8, xxxx Check 129 Hotwire Electric   300 22105 Yes- X
Mar 8, xxxx Check 130 Talkalot Service   150 21955 Yes
Mar 10, xxxx Deposit Slip 16 Daily Sales and Collections Report 1500   23455 Yes
Mar 12, xxxx Check 131 Smalltown Newspaper   100 23355 Yes
Mar 15, xxxx Deposit Slip 17 Daily Sales and Collections Report 4200   27555 Yes
Mar 15, xxxx Check 132 Oldtime Cabinets   2500 25055 Yes
Mar 18, xxxx Check 133 Fancy Ann's Restaurant   250 24805 Yes
Mar 20, xxxx Check 134 Dirtyman Garbage   125 24680 Yes
Mar 27, xxxx Check 135 Refinisher Equipment Sales   15000 9680 No
Mar 27, xxxx Deposit Slip 18 Daily Sales and Collections Report 2100   11780 No
Mar 28, xxxx Check 136 Acme Signs   450 11330 No
Mar 29, xxxx Deposit Slip 19 Daily Sales and Collections Report 750   12080 No
Mar 29, xxxx Check 137 Old Store   1500 10580 No
Mar 30, xxxx Check 138 Nice Landlord   1000 9580 No
Mar 30, xxxx Deposit Slip 20 Daily Sales and Collections Report 1100   10680 No
Mar 31, xxxx Deposit Slip 22 Daily Sales and Collections Report 500   11180 No
Mar 31, xxxx   Correction to Addition Error
March 5
    1000
12180
 
Mar 31, xxxx Check 129 Correct Amount Of Check 109   100 12080  
Mar 31, xxxx MSF Bank Statement Fee   10 12070  
Mar 31, xxxx ID Insurance Draft   400 11670  

Ma and Pa's Final Outstanding Check List as of March 31, xxxx

Date Check Number Payee Amount
Feb 27, xxxx 123 Fixit Right 200
Mar 27, xxxx 135 Refinisher Equipment Sales 15000
Mar 28, xxxx 136 Acme Signs 450
Mar 29, xxxx 137 Old Store 1500
Mar 30, xxxx 138 Nice Landlord 1000
       
Month Totals     18150

Ma and Pa's Final Deposits In Transit as of March 31, xxxx

Date Reference Amount
Mar 29, xxxx Deposit Slip 19 750
Mar 30, xxxx Deposit Slip 20 1100
Mar 31, xxxx Deposit Slip 22 500
Total   4450

Final Bank Reconciliation -March xxxx

Balance Per Bank 25370 Balance
Per Check Book
11180
Plus:      
Deposits In Transit 4450    
    Correction to Addition Error in Check Book March 5 1000
Less:      
Outstanding Checks 18150    
    Correction to Amount Of Check 129 100
    Bank Statement Fee 10
    Insurance Draft 400
       
Adjusted Bank Balance 11670 Adjusted Book Balance 11670

Did I Pull A Fast One On Ya ?

I thru you a little curve in this reconciliation. Did you notice that Deposit Slip 21 was not recorded in the check book or the bank statement. I didn't tell you the amount of the deposit so you wouldn't have been able to record this transaction in your check book without this additional information. If we had the proper information available, we would have added this deposit to our check book and included it in our Listing Of Deposits In Transit.

What if we didn't catch this error in March. This transaction would have appeared in the April Bank Statement and we would have caught it then.

Return To Tutorial