How to read a business bank statement
Paid out, paid in and balance: follow a month of a business bank statement and learn what the codes and the letters OD mean.
Task 1What the statement shows4 questions
A bank statement is the bank's list of everything that went into and out of one account over a period, here one month.
- Paid out
- money that left the account
- Paid in
- money that came into the account
- Balance
- what is in the account after each line
| Date | Details | Paid out | Paid in | Balance |
|---|---|---|---|---|
| 1 May | Balance brought forward | 3,200.00 | ||
| 2 May | SO Beck Estates, rent | 700.00 | 2,500.00 | |
| 3 May | BACS Moorside School | 840.00 | 3,340.00 | |
| 12 May | Paid in at branch | 615.00 | 3,955.00 | |
| 14 May | CHQ 301 | 520.00 | 3,435.00 | |
| 18 May | FP wages | 1,150.00 | 2,285.00 | |
| 20 May | DD Shield Insurance | 85.00 | 2,200.00 | |
| 24 May | FP Hill Top Hire | 450.00 | 2,650.00 | |
| 27 May | BACS Ridge Road Club | 300.00 | 2,950.00 | |
| 31 May | Bank charges | 15.00 | 2,935.00 |
The opening balance, plus everything paid in, less everything paid out, gives the closing balance.
Task 2The codes beside each line3 questions
Task 3The bank's point of view3 questions