Explaining the three forms of bank reconciliation.

a. Adjusted balance method

Book balance xx
Add: Credit memos xx
Total xx
Less: Debit memos xx
Adjusted book balance xx

Bank Balance xx
Add: Deposits in transit xx
Total xx
Less: Outstanding checks xx

Adjusted bank balance xx

b. Book to bank method

Book balance xx
Add: Credit memos xx
Outstanding checks xx xx
Total xx
Less: Debit memos xx
Deposit in transit xx xx
Bank balance per bank statement xx

c. Bank to book method

Bank balance xx
Add: Deposit in transit xx
Debit memos xx xx
Total xx
Less: Outstanding checks xx
Credit memos xx xx
Book balance xx