BANKING PART 7BANKING PART 7CHECKBOOK BALANCING CHECKBOOK BALANCING

Mr. Stasa – http://northbiz.weebly.com

By the end of today’s lesson you will be able to do the following:

1. Understand the importance of balancing a checkbook

2. Understand the differences between an outstanding check and outstanding deposit

3. Balance a checkbook

What do you Need?

1. Checkbook register2. Recent bank statement3. Reconciliation form

Why Reconcile?

• Allows you to check your bank statement and checkbook register for errors

• Maintain an accurate account balance• Alert of identity theft early on

Outstanding checks are checks which have been issued by the payer (you), but have not yet been printed on a bank statement.

Outstanding deposits are deposits made at a bank but have not yet been printed on a bank statement.

A bank reconciliation form accounts for the differences between the bank statement and a checkbook balance

Checkbook Register

Bank Statement

register

5/5/15

Account Fee 10 00

41 89

10 00

register balance 31 89

5/5/15 30 00

75 00

30 00

105 00

100 23 11

73 11

31 89

101 50 00

Our checkbook register has an ending balance of $41.89 and our bank statement has a balance of $75.00. We have two outstanding checks: #100 for $23.11 and #101 for $50.00. We have one outstanding deposit for $30.00. There is one account fee for $10.00

You should now be able to do the following:

1. Understand the importance of balancing a checkbook

2. Understand the differences between an outstanding check and outstanding deposit

3. Balance a checkbook