HOW TO DO A BANK RECONCILIATION

This document will guide you through how to do a monthly bank reconciliation, as
required for your DSU audit submission.

This first page provides an example January bank reconciliation for the Fictional Student
Society, with detailed explanations of every item.

The remaining pages in this workbook contain monthly autocalculating bank
reconciliation templates for you to fill in, print off, and add to your records.

Bank Reconciliation
FICTIONAL STUDENT SOCIETY
DATE: January 14, 2012

Bank Balance $ 2,012.24

PLUS Outstanding Deposits
Petty cash $120.00
DSU funding cheque (fall 2011) $130.00

TOTAL $ 250.00

LESS Outstanding Cheques

Cheque # Date Amount
149 12-Nov $ 10.00
153 5-Jan $ 100.00
154 5-Jan $ 40.00

TOTAL $ 150.00

Adjusted Bank Balance $ 2,112.24

General Ledger $ 2,115.74

Adjustment to Ledger
Bank Fees $ 3.50

24 Difference $ - .Adjusted General Ledger $ 2.112.

write them here. OUTSTANDING CHEQUES: List any cheques you have written. You received your statement in the mail on Jan. . cheques written TO your society but not yet cashed. For example. and also record that amount here on the bank reconciliation for that month. each on its own individual line. or any other money that's not in the bank account yet. 14. GENERAL LEDGER: This is the balance in your General Ledger on the same date as your bank statement closing balance date. TOTAL: This will automatically sum all outstanding cheques. but haven't checked off in your ledger as being cashed by the date of this month's bank statement. Note that you must record bank fees in your ledger ON OR AFTER THE DAY YOU GET THE BANK STATEMENT (NOT the day the bank fees are listed as being applied on your bank statement). 20 in your General Ledger. TOTAL: This will automatically sum all outstanding deposits. 31 should be listed here. BANK BALANCE: Closing balance on your bank statement. DATE: Closing balance date from your bank statement. and subtract Outstanding Cheques. or this will not work right. For example. you are doing your bank reconciliation for the (fiscal) month ending Jan. You would then record "January bank fees" with a date of Jan. BANK FEES: If you have bank fees FOR THE MONTH OF THE BANK RECONCILIATION YOU ARE DOING. any uncashed cheques you've written on or before Jan.SOCIETY: Your society name. OUTSTANDING DEPOSITS: List any petty cash. 31. ADJUSTED BANK BALANCE: This will automatically sum Bank Balance and Outstanding Deposits. if your closing balance date is Jan. 20.

20 in your General Ledger. A Value of "0": Congrats! You have likely entered everything correctly. 14. and indicates that you have less money than your books say you do. this shows you if any mistakes have been made in your bookkeeping. or a simple addition error in your General Ledger balance. ADJUSTED GENERAL LEDGER: This will automatically subtract Bank Fees from General Ledger. While it could mean that money has gone missing or been stolen. it is often due to misrecording the amount of a cheque written. 20. . You would then record "January bank fees" with a date of Jan. or this will not work right. you are doing your bank reconciliation for the (fiscal) month ending Jan. and also record that amount here on the bank reconciliation for that month. DIFFERENCE: Arguably the most important line. You received your statement in the mail on Jan. A Negative Value: This is slightly more ominous. For example. A Positive Value: Means you have more money in the bank than you accounted for in your General Ledger. This is usually due to not recording either bank fees or a cheque you wrote.YOU GET THE BANK STATEMENT (NOT the day the bank fees are listed as being applied on your bank statement).

Bank Reconciliation SOCIETY NAME DATE: END FISCAL MONTH Bank Balance $ - PLUS Outstanding Deposits TOTAL $ - LESS Outstanding Cheques Cheque # Date Amount TOTAL $ - Adjusted Bank Balance $ - General Ledger $ - Adjustment to Ledger Bank Fees Adjusted General Ledger $ - Difference $ - .

Bank Reconciliation SOCIETY NAME DATE: END FISCAL MONTH Bank Balance $ - PLUS Outstanding Deposits TOTAL $ - LESS Outstanding Cheques Cheque # Date Amount TOTAL $ - Adjusted Bank Balance $ - General Ledger $ - Adjustment to Ledger Bank Fees Adjusted General Ledger $ - Difference $ - .

Bank Reconciliation SOCIETY NAME DATE: END FISCAL MONTH Bank Balance $ - PLUS Outstanding Deposits TOTAL $ - LESS Outstanding Cheques Cheque # Date Amount TOTAL $ - Adjusted Bank Balance $ - General Ledger $ - Adjustment to Ledger Bank Fees $ - Adjusted General Ledger $ - Difference $ - .

Bank Reconciliation SOCIETY NAME DATE: END FISCAL MONTH Bank Balance $ - PLUS Outstanding Deposits TOTAL $ - LESS Outstanding Cheques Cheque # Date Amount TOTAL $ - Adjusted Bank Balance $ - General Ledger $ - Adjustment to Ledger Bank Fees $ - Adjusted General Ledger $ - Difference $ - .

Bank Reconciliation SOCIETY NAME DATE: END FISCAL MONTH Bank Balance $ - PLUS Outstanding Deposits TOTAL $ - LESS Outstanding Cheques Cheque # Date Amount TOTAL $ - Adjusted Bank Balance $ - General Ledger $ - Adjustment to Ledger Bank Fees $ - Adjusted General Ledger $ - Difference $ - .

Bank Reconciliation SOCIETY NAME DATE: END FISCAL MONTH Bank Balance $ - PLUS Outstanding Deposits TOTAL $ - LESS Outstanding Cheques Cheque # Date Amount TOTAL $ - Adjusted Bank Balance $ - General Ledger $ - Adjustment to Ledger Bank Fees $ - Adjusted General Ledger $ - Difference $ - .

Bank Reconciliation SOCIETY NAME DATE: END FISCAL MONTH Bank Balance $ - PLUS Outstanding Deposits TOTAL $ - LESS Outstanding Cheques Cheque # Date Amount TOTAL $ - Adjusted Bank Balance $ - General Ledger $ - Adjustment to Ledger Bank Fees $ - Adjusted General Ledger $ - Difference $ - .

Bank Reconciliation SOCIETY NAME DATE: END FISCAL MONTH Bank Balance $ - PLUS Outstanding Deposits TOTAL $ - LESS Outstanding Cheques Cheque # Date Amount TOTAL $ - Adjusted Bank Balance $ - General Ledger $ - Adjustment to Ledger Bank Fees $ - Adjusted General Ledger $ - Difference $ - .

Bank Reconciliation SOCIETY NAME DATE: END FISCAL MONTH Bank Balance $ - PLUS Outstanding Deposits TOTAL $ - LESS Outstanding Cheques Cheque # Date Amount TOTAL $ - Adjusted Bank Balance $ - General Ledger $ - Adjustment to Ledger Bank Fees $ - Adjusted General Ledger $ - Difference $ - .

Bank Reconciliation SOCIETY NAME DATE: END FISCAL MONTH Bank Balance $ - PLUS Outstanding Deposits TOTAL $ - LESS Outstanding Cheques Cheque # Date Amount TOTAL $ - Adjusted Bank Balance $ - General Ledger $ - Adjustment to Ledger Bank Fees $ - Adjusted General Ledger $ - Difference $ - .

Bank Reconciliation SOCIETY NAME DATE: END FISCAL MONTH Bank Balance $ - PLUS Outstanding Deposits TOTAL $ - LESS Outstanding Cheques Cheque # Date Amount TOTAL $ - Adjusted Bank Balance $ - General Ledger $ - Adjustment to Ledger Bank Fees $ - Adjusted General Ledger $ - Difference $ - .

Bank Reconciliation SOCIETY NAME DATE: END FISCAL MONTH Bank Balance $ - PLUS Outstanding Deposits TOTAL $ - LESS Outstanding Cheques Cheque # Date Amount TOTAL $ - Adjusted Bank Balance $ - General Ledger $ - Adjustment to Ledger Bank Fees $ - Adjusted General Ledger $ - Difference $ - .