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A bank reconciliation is a method used to determine the reasons for discrepancies between the bank statement balance and the Cash in Bank account balance and to calculate an adjusted balance. Discrepancies are usually due to outstanding items which have not yet been recorded by either of the bank or the company, and which typically include checks not yet presented for collection, deposits in transit and bank service charges. Errors are another common cause of discrepancies, which the reconciliation will help correct. Finally, the reconciliation may uncover irregularities.
| Balance per bank | XX |
| Add: | |
| Deposits in transit | XX |
| Total | XX |
| Less: | |
| Outstanding checks | XX |
| Adjusted bank balance | XX |
| Balance per book | XX | |
| Add: | ||
| Deposits not recorded in book | XX | |
| Interests earned not yet recorded | XX | XX |
| Total | XX | |
| Less: | ||
| Not-sufficient-fund checks | XX | |
| Bank service charges | XX | XX |
| Adjusted book balance | XX | |
* Adjusted bank balance must equal adjusted book balance.
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