How do I do a bank reconciliation in Excel?

Steps to Prepare A Bank Reconciliation Statement

1. Identify uncleared checks and deposits in transit.
2. Add back any deposits in transit.
3. Deduct any outstanding checks.
4. Add notes receivables and interest earned to the balance.
5. Subtract Bank Charges, interest paid, service fees, penalties, etc.

What is the journal entry for bank reconciliation?

The journal entries for the bank fees would debit Bank Service Charges and credit Cash. The journal entry for a customer’s check that was returned due to insufficient funds will debit Accounts Receivable and will credit Cash.

How do you record a bank reconciliation?

Bank reconciliation steps

1. Get bank records. You need a list of transactions from the bank.
2. Get business records. Open your ledger of income and outgoings.
3. Find your starting point.
4. Run through bank deposits.
5. Check the income on your books.
6. Run through bank withdrawals.
7. Check the expenses on your books.
8. End balance.

How do you write a bank reconciliation example?

Bank Reconciliation Procedure

1. On the bank statement, compare the company’s list of issued checks and deposits to the checks shown on the statement to identify uncleared checks and deposits in transit.
2. Using the cash balance shown on the bank statement, add back any deposits in transit.
3. Deduct any outstanding checks.

What is an example of bank reconciliation?

Examples of reconciling items in a bank reconciliation are deposits in transit and uncashed checks. Some reconciling items may require adjustment to the records of the recording entity, such as an uncashed check fee that has been imposed by the entity’s bank.

Why to prepare a bank reconciliation statement?

Explain some reasons for preparing Bank Reconciliation statement To detect items not entered and errors in the cash book To ensure that the cash book entries are complete. To discover bank errors ( bank personnel too make mistake!!) To discover dishonored cheques To monitor “stale” cheques ( those cheques which have not been banked by the payee within the local banking law of six (6) months

What to know about bank reconciliation?

A bank reconciliation is the process of matching the balances in an entity’s accounting records for a cash account to the corresponding information on a bank statement. The goal of this process is to ascertain the differences between the two, and to book changes to the accounting records as appropriate.

What is the objective of bank reconciliation?

The purpose of a bank reconciliation. A bank reconciliation is used to compare your records to those of your bank , to see if there are any differences between these two sets of records for your cash transactions. The ending balance of your version of the cash records is known as the book balance, while the bank’s version is called the bank balance.