How to write a bank reconciliation statement

Lay out a bank reconciliation statement line by line, deal with an overdrawn balance, and know what to do when it will not agree.

MediumPremium12 min
Task 1The layout4 questions

A bank reconciliation statement starts with one balance and ends with the other. Each line between is a timing difference.

Calder Cycles, bank reconciliation statement at 31 May
DetailsAmount
Balance per bank statement2,935.00
Add: outstanding lodgement, takings of 31 May380.00
Less: unpresented cheque 302, Dale Signs(260.00)
Balance per updated cash book?

Lodgements are added because the bank will add them. Cheques are taken off because the bank will take them off.

The cash book has already been updated for the items the bank knew first. It now shows £3,055.

Task 2A month with more items, and a gap4 questions
Task 3When the account is overdrawn2 questions