Bank Reconciliation Instructions

Printable Version
#Write at the top of the page of your new worksheet, the month you are reconciling and the next check no. from the previous month’s statement. (Wait until you have completed the reconciliation to record the last check for the month.)
#Compare the checks from the bank statement to the outstanding list of checks from the previous month and check off the ones that have cleared. Put a mark on the statement to let you know where you have stopped. List on your worksheet all of the old outstanding checks that have not cleared.
#Go to the folder listing the checks written, usually the previous month’s last group. Compare these checks to your statement and put a mark beside the check in the ledger so that you will know when a check has cleared. When a check is missing draw a long line out beside it so that you can pick that check and amount up easily after you have marked all of the checks that have cleared. On the statement there will be an * to indicate when a check no. is missing. This is another way to check yourself and make sure you have all of the checks outstanding listed.
#Compare the total of each of the check disbursements and the administrative checks disbursements to the amount of the deposit on the statements and make a notation if there are any differences.
#Record any bank charges from the statement under the bank statement amount column. Look for any other charges from the bank that we do not have recorded.
#When you have been through the entire bank statement, begin listing all of the current outstanding checks for the month. Check to sure that all of your checks are in order number (Sometimes the administrative checks are deposited and the check numbers are out of order with the following ledger checks in between. Note this on your worksheet at the bottom for reference the following month and show the deposit in a negative for balancing purposes. The following month you will check it off the worksheet.)
#Your worksheet will have two basic columns.

Outstanding checks
• Old outstanding checks from the previous month’s reconciliation
• Outstanding checks from this month’s disbursements
Bank Balance
• Beginning balance from bank statement
• Bank Charges from statement
• Adjustments in differences in the amount of the deposit and amount of the disbursement
• Deposits of checks disbursed but not deposited in the account must be recorded.
• Voided checks not recorded on the disbursement ledger must be used to balance.
• Checks reimbursed to the College and deducted from the disbursed checks must be used to balance.