5 Bank Reconciliation Examples

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.

Using batch numbers to reconcile deposits in transit using excel

The process involves identifying cleared deposits as matches, while unmatched deposits are considered deposits in transit.

bank statement credits showing deposits and fund transfer.

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.

using vlookup to reconcile checks and identify outstanding checks

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.

Bank statement Debits

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.

example of 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.

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.

example of unrecorded debit memo.
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