Bank Reconciliation and Checks

Yesterday, we were taught about bank reconciliation and check. Checks are more convenient and more practical to carry around than cash specially when dealing with huge amounts of money but, one has to know how to use it properly and responsibly so as not to encounter problems like bouncing checks. I find the lesson interesting and very useful since I know that we will be able to encounter such things in the near future (when we become BILLIONAIRES :)) ).

ow yeh!

Some terms to remember:

• Bank reconciliation - process of bringing the bank's monthly report for each depositor showing deposits made, check written, cancelled checks and service charges.
• Checkbook - contains check and check stub
• Outstanding checks - checks issued by depositor but not yet presented to the bank for payment
• Deposits in transit - deposits made but late to be included in monthly bank statement.
• Cancelled checks - checks that have been paid by the bank

Sample check.
One must write legibly and without errors on a check. 

But then, we sometimes commit mistakes and errors. In such situations, there is a formula to follow in order to fix everything. Below is a sample formula on how to do a Reconciliation Statement.

There you go! :)

Looking forward to our next lesson :D

Checked by Prof. Crisencio Paner