Today, you’ll learn bank reconciliation examples.
We’ll explore practical bank reconciliation examples, covering scenarios such as outstanding checks, deposits in transit, and managing bank fees.
This process ensures your financial records align accurately with your bank statement transactions.
What is a bank reconciliation?
Click here to learn more about bank reconciliation.
Continuing on, here are the examples:
1. Reconciling Deposits
When reconciling deposits, the SUMIF formula in Excel is employed to compare and match deposits in the bank’s records with book records.
Additionally, the manual addition of batch numbers to book records and bank statement credits is performed to facilitate matching.
The process involves identifying cleared deposits as matches, while unmatched deposits are considered deposits in transit.
2. Reconciling Checks Issued
To reconcile checks issued, the VLOOKUP function in Excel is utilized to match check numbers in book records with bank statement debits.
Differences are identified using VLOOKUP, and any discrepancies indicate recording errors in the book.
Unfound check numbers in the bank statement are recognized as outstanding checks.
3. Reconciling Unrecorded Deposits
Starting from the bank, the process involves checking whether batch numbers exist in the bank records.
An empty row in the batch number column signifies an unrecorded deposit.
4. Reconciling Unrecorded Check Issuance
For reconciling unrecorded check issuance, the VLOOKUP function is used to compare checks cleared in the bank with book records.
Unrecorded checks are identified as those not found in the book.
Sorting the #NA results in the VLOOKUP function aids in efficiently pinpointing unrecorded checks.
5. Reconciling Unrecorded Debit Memos
Similar to reconciling deposits, the SUMIF function or VLOOKUP function is employed to compare the bank’s debit memos with book records.
Batch numbers may be considered for manual comparison, and while the VLOOKUP function can be used, it may be more time-consuming in this context.
Row without a check number may be used to identify unrecorded debit memos.