Reconcile a Bank StatementSection 3.2

Reconcile a Bank Statement•What is the difference between:

a) Bank Statement b) Checkbook

Terminology•Outstanding Deposit

▫Deposit that has not been recorded by the bank yet

•Outstanding Check▫Check that you wrote that has not been

cashed yet•Outstanding Withdrawal

▫Withdrawal you made that has not been recorded yet

▫Could be at ATM transaction, debit card use, etc…

Reconciling a Checkbook•The process in which you verify the

bank’s records

•Use done in a check register (checkbook)

•Gives you an accurate count of the money you have in your account

Example•Compare entries in check register with the

bank statement.

•Put a next to any deposit or check listed on the bank statement

•List all outstanding checks, deposits, and withdrawals

•Calculate actual amount in bank account

Questions…a) Ending Balance from statementb) Deposits Outstandingc) Checks Outstandingd) Revised statement balancee) Balance from checkbook

Individual Worka) $2,368.29

b) $300

c) $119

d) $2,549.29

e) $2,549.29

Class Work•Complete numbers 1-5 on worksheet

•Complete numbers 1-5 on page 127