10+ Bank Reconciliation Item Lists

Today, you’ll learn about bank reconciliation item lists.

Here are the lists of bank reconciliation items:

1. Unadjusted Balances

The highlighted amount is the unadjusted balance of the bank reconciliation statement.

It represents the bank and book balances before any reconciliation takes place.

2. Deposits in Transit

Deposits in transit are cash sent to the bank but have not yet cleared in a bank.

For whatever reason, the bank has not yet recognized the deposit of the bank reconciliation cut-off date.

The timing difference of deposits is a crucial factor in this case.

For instance, collections at month-end are usually the major culprits often deposited in the ensuing months.

3. Outstanding Checks

Outstanding checks are checks you’ve written but have not yet been presented for payment by the payees.

These checks are deducted from your cash book balance because they haven’t reduced your bank account balance yet.

4. Bank Fees and Charges

Bank charges are expenses deducted by the bank for services like maintenance fees, overdraft charges, or wire transfer fees.

These reduce your bank balance and may not be immediately recorded in your cash book.

5. Interest Earned

Interest earned is the income you receive from your bank account, such as savings account interest.

This income is added to your cash book balance as it increases your funds.

6. Interest Charges

Interest charges are fees your bank deducts for loans, credit card balances, or overdrafts.

These charges decrease your bank balance and may not be immediately recorded in your cash book.

7. Direct Debits and Automatic Withdrawals

These are recurring deductions authorized by you, such as mortgage payments, insurance premiums, or subscription fees. They decrease your bank balance and are usually recorded in your cash book when they occur.

8. Credit Card Payments

If you make payments on your credit card from your bank account, these payments are deducted from your bank balance.

They might not be immediately recorded in your cash book.

9. Bank Errors

Sometimes, the bank may make errors in processing transactions.

These could include incorrect amounts deducted or deposited, which can lead to discrepancies.

10. Cleared Checks

Cleared checks are checks that you’ve written and have been processed by the bank.

They reduce your bank balance and should match the entries in your cash book.

11. ATM Withdrawals

Withdrawals made from ATMs or at the bank’s counter reduce your bank balance.

These transactions should be recorded in your cash book promptly.

12. Electronic Transfers

Electronic transfers, including online bill payments or fund transfers, can affect both your bank balance and cash book.

Ensure they are accurately recorded in both places.

13. NSF Checks (Non-Sufficient Funds)

If a check you’ve received bounces due to insufficient funds, it will affect your bank balance when it’s returned unpaid.

You may need to adjust your cash book to account for this.

14. Reversals and Adjustments

Reversals and adjustments can occur due to errors or disputes with transactions.

They involve reversing or correcting previously recorded transactions to align your records with the bank statement.

15. Unexplained Differences

Sometimes, discrepancies arise that are not immediately identifiable.

Unexplained differences may occur due to missing or undocumented transactions, bank errors, or discrepancies in recording.

16. Closing Balance

The closing balance is the balance in your cash book at the end of the reconciliation process.

It represents the adjusted cash book balance after accounting for all reconciling items.

Jason John Wethe
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