Post on 29-Dec-2015
Checking AccountsStep 5 – Reconciling with Your Bank
Managing Your Money
Terms To Know - Review
Reconcile – Matching your balance with the bank’s
Transaction – Any amount taken from or added to your account
Check Register – A small booklet to record all transactions
Outstanding Check/Deposit – A check written or deposit made, but not yet cleared through your bank
Overdrawn – Writing a check for more money than the actual amount you have in your checking account
Bank Fees – monthly service fee, overdrawn fee
Checkbook Register
# Date Description Payment
√ Deposit
Balance
10-21-10
Opening deposit 500.00 500.00
Checkbook Register
# Date Description Payment
√ Deposit
Balance
10-21-10
Opening deposit 500.00 500.00
101
10-23-10
Grocery store 38.42 461.58
Checkbook Register
# Date Description Payment
√ Deposit
Balance
10-21-10
Opening deposit 500.00 500.00
101
10-23-10
Grocery store 38.42 461.58
10-23-10
Movie theater, debit card
20.00 441.58
Checkbook Register
# Date Description Payment
√ Deposit
Balance
10-21-10
Opening deposit 500.00 500.00
101
10-23-10
Grocery store 38.42 461.58
10-23-10
Movie theater, debit card
20.00 441.58
10-25-10
ATM withdrawal 40.00 401.58
Checkbook Register
# Date Description Payment
√ Deposit
Balance
10-21-10
Opening deposit 500.00 500.00
101
10-23-10
Grocery store 38.42 461.58
10-23-10
Movie theater, debit card
20.00 441.58
10-25-10
ATM withdrawal 40.00 401.58
102
10-26-10
Electric company 53.18 348.40
Checkbook Register
# Date Description Payment
√ Deposit
Balance
10-21-10
Opening deposit 500.00 500.00
101
10-23-10
Grocery store 38.42 461.58
10-23-10
Movie theater, debit card
20.00 441.58
10-25-10
ATM withdrawal 40.00 401.58
102
10-26-10
Electric company 53.18 348.40
11-3-10
Deposit - paycheck 225.00 573.40
Bank Statement
Date Description/Transaction Debit Credit Balance
10-21
Deposit 500.00 500.00
10-23
Point of sale; Theaters R Us 20.00 480.00
10-25
Check #101 – Grocery Unlimited 38.42 441.58
10-25
Service fee 5.00 436.58
10-26
ATM withdrawal 40.00 396.58
My Bank123 Main StreetHometown, TX 98765
Statement – Nov. 2, 2010
Summary
Total DepositsTotal WithdrawalsBalance on Nov. 1
$500.00
$103.42
$396.58
Bank Statement
Date Description/Transaction Debit Credit Balance
10-21
Deposit 500.00 500.00
10-23
Point of sale; Theaters R Us 20.00 480.00
10-25
Check #101 – Grocery Unlimited 38.42 441.58
10-25
Service fee 5.00 436.58
10-26
ATM withdrawal 40.00 396.58
My Bank123 Main StreetHometown, TX 98765
Statement – Nov. 2, 2010
Summary
Total DepositsTotal WithdrawalsBalance on Nov. 1
$500.00
$103.42
$396.58
Checkbook Register
# Date Description Payment
√ Deposit
Balance
10-21-10
Opening deposit √ 500.00 500.00
101
10-23-10
Grocery store 38.42 461.58
10-23-10
Movie theater, debit card
20.00 441.58
10-25-10
ATM withdrawal 40.00 401.58
102
10-26-10
Electric company 53.18 348.40
11-3-10
Deposit - paycheck 225.00 573.40
Bank Statement
Date Description/Transaction Debit Credit Balance
10-21
Deposit 500.00 500.00
10-23
Point of sale; Theaters R Us 20.00 480.00
10-25
Check #101 – Grocery Unlimited 38.42 441.58
10-25
Service fee 5.00 436.58
10-26
ATM withdrawal 40.00 396.58
My Bank123 Main StreetHometown, TX 98765
Statement – Nov. 2, 2010
Summary
Total DepositsTotal WithdrawalsBalance on Nov. 1
$500.00
$103.42
$396.58
Checkbook Register
# Date Description Payment
√ Deposit
Balance
10-21-10
Opening deposit √ 500.00 500.00
101
10-23-10
Grocery store 38.42 461.58
10-23-10
Movie theater, debit card
20.00 √ 441.58
10-25-10
ATM withdrawal 40.00 401.58
102
10-26-10
Electric company 53.18 348.40
11-3-10
Deposit - paycheck 225.00 573.40
Bank Statement
Date Description/Transaction Debit Credit Balance
10-21
Deposit 500.00 500.00
10-23
Point of sale; Theaters R Us 20.00 480.00
10-25
Check #101 – Grocery Unlimited 38.42 441.58
10-25
Service fee 5.00 436.58
10-26
ATM withdrawal 40.00 396.58
My Bank123 Main StreetHometown, TX 98765
Statement – Nov. 2, 2010
Summary
Total DepositsTotal WithdrawalsBalance on Nov. 1
$500.00
$103.42
$396.58
Checkbook Register
# Date Description Payment
√ Deposit
Balance
10-21-10
Opening deposit √ 500.00 500.00
101
10-23-10
Grocery store 38.42 √ 461.58
10-23-10
Movie theater, debit card
20.00 √ 441.58
10-25-10
ATM withdrawal 40.00 401.58
102
10-26-10
Electric company 53.18 348.40
11-3-10
Deposit - paycheck 225.00 573.40
Bank Statement
Date Description/Transaction Debit Credit Balance
10-21
Deposit 500.00 500.00
10-23
Point of sale; Theaters R Us 20.00 480.00
10-25
Check #101 – Grocery Unlimited 38.42 441.58
10-25
Service fee 5.00 436.58
10-26
ATM withdrawal 40.00 396.58
My Bank123 Main StreetHometown, TX 98765
Statement – Nov. 2, 2010
Summary
Total DepositsTotal WithdrawalsBalance on Nov. 1
$500.00
$103.42
$396.58
Checkbook Register
# Date Description Payment
√ Deposit
Balance
10-21-10
Opening deposit √ 500.00 500.00
101
10-23-10
Grocery store 38.42 √ 461.58
10-23-10
Movie theater, debit card
20.00 √ 441.58
10-25-10
ATM withdrawal 40.00 401.58
102
10-26-10
Electric company 53.18 348.40
11-3-10
Deposit - paycheck 225.00 573.40
10-25-10
Service fee 5.00 √ 568.40
You will need to add the service fee transaction to your checkbook register and update your balance.
Bank Statement
Date Description/Transaction Debit Credit Balance
10-21
Deposit 500.00 500.00
10-23
Point of sale; Theaters R Us 20.00 480.00
10-25
Check #101 – Grocery Unlimited 38.42 441.58
10-25
Service fee 5.00 436.58
10-26
ATM withdrawal 40.00 396.58
My Bank123 Main StreetHometown, TX 98765
Statement – Nov. 2, 2010
Summary
Total DepositsTotal WithdrawalsBalance on Nov. 1
$500.00
$103.42
$396.58
Checkbook Register
# Date Description Payment
√ Deposit
Balance
10-21-10
Opening deposit √ 500.00 500.00
101
10-23-10
Grocery store 38.42 √ 461.58
10-23-10
Movie theater, debit card
20.00 √ 441.58
10-25-10
ATM withdrawal 40.00 √ 401.58
102
10-26-10
Electric company 53.18 348.40
11-3-10
Deposit - paycheck 225.00 573.40
10-25-10
Service fee 5.00 √ 568.40
Checkbook Register
# Date Description Payment
√ Deposit
Balance
10-21-10
Opening deposit √ 500.00 500.00
101
10-23-10
Grocery store 38.42 √ 461.58
10-23-10
Movie theater, debit card
20.00 √ 441.58
10-25-10
ATM withdrawal 40.00 √ 401.58
102
10-26-10
Electric company 53.18 348.40
11-3-10
Deposit - paycheck 225.00 573.40
10-25-10
Service fee 5.00 √ 568.40
Two items NOT included on the bank statement
Reconciling
Bank Statement Summary
Total DepositsTotal WithdrawalsBalance on Nov. 1
$500.00
$103.42
$396.58# Date Description Payme
nt√ Depos
itBalanc
e
10-21-10
Opening deposit √ 500.00 500.00
101
10-23-10
Grocery store 38.42 √ 461.58
10-23-10
Movie theater, debit card
20.00 √ 441.58
10-25-10
ATM withdrawal 40.00 √ 401.58
102
10-26-10
Electric company 53.18 348.40
11-3-10
Deposit - paycheck 225.00 573.40
10-25-10
Service fee 5.00 √ 568.40
Checkbook Balance
$568.40
Reconciling
Bank Statement Summary
Total DepositsTotal WithdrawalsBalance on Nov. 1
$500.00
$103.42
$396.58# Date Description Payme
nt√ Depos
itBalanc
e
10-21-10
Opening deposit √ 500.00 500.00
101
10-23-10
Grocery store 38.42 √ 461.58
10-23-10
Movie theater, debit card
20.00 √ 441.58
10-25-10
ATM withdrawal 40.00 √ 401.58
102
10-26-10
Electric company 53.18 348.40
11-3-10
Deposit - paycheck 225.00 573.40
10-25-10
Service fee 5.00 √ 568.40
568.40
+ 53.18
Reconciling
Bank Statement Summary
Total DepositsTotal WithdrawalsBalance on Nov. 1
$500.00
$103.42
$396.58# Date Description Payme
nt√ Depos
itBalanc
e
10-21-10
Opening deposit √ 500.00 500.00
101
10-23-10
Grocery store 38.42 √ 461.58
10-23-10
Movie theater, debit card
20.00 √ 441.58
10-25-10
ATM withdrawal 40.00 √ 401.58
102
10-26-10
Electric company 53.18 348.40
11-3-10
Deposit - paycheck 225.00 573.40
10-25-10
Service fee 5.00 √ 568.40
568.40
+ 53.18
- 225.00
Reconciling
Bank Statement Summary
Total DepositsTotal WithdrawalsBalance on Nov. 1
$500.00
$103.42
$396.58# Date Description Payme
nt√ Depos
itBalanc
e
10-21-10
Opening deposit √ 500.00 500.00
101
10-23-10
Grocery store 38.42 √ 461.58
10-23-10
Movie theater, debit card
20.00 √ 441.58
10-25-10
ATM withdrawal 40.00 √ 401.58
102
10-26-10
Electric company 53.18 348.40
11-3-10
Deposit - paycheck 225.00 573.40
10-25-10
Service fee 5.00 √ 568.40
568.40
+ 53.18
- 225.00
$396.58
Bank = Checkbook
Reconciling CompletedCongratulations!
Bank Statement Summary
Total DepositsTotal WithdrawalsBalance on Nov. 1
$500.00
$103.42
$396.58
568.40
+ 53.18
- 225.00
$396.58
Bank = Checkbook
Keys to Successful Reconciliation
Identifying exactly what transactions are on the bank statement AND your checkbook register
Identifying what transactions are on the bank statement and NOT yet on your register
Identifying what transactions are on your register and are NOT yet included on your bank statement
Checking AccountsWhat’s Next?
Effectively maintaining your account …
The benefits of doing so,
the consequences of not.
Managing Your Money