| True balance as per cash book | $ 604.19 | |
| Outstanding checks: | ||
| No. 992A | $132.25 | |
| 529B | 214.50 | |
| 542B | 379.60 | |
| 557B | 119.40 | |
| 581B | 75.20 | 920.95 |
| Bank balance as per bank’s statement | $1,525.14 | |
Other Reconciliation Factors.—Oftentimes other items than those shown must be taken into consideration when reconciliation is made. Where several bank accounts are kept and a check register—in addition to the cash book—is used to keep record of the accounts with the various banks, it may happen that checks drawn on one bank are wrongly charged to another; that checks drawn, or deposits made one day, are not credited until the next; that certain drafts deposited with the bank for collection are not credited to the depositor’s account until collection is made, whereas the depositor debited the bank at the time of the deposit; again it may be that the item of bank’s charges for collection has not yet been recorded; or that interest on deposit balances has not been credited, etc. All such items must be considered when reconciliation is made. Where there are many of these adjustment items to be taken account of, it may be necessary to list them in formal schedules under such heads as:
- 1. Bank charges, we do not credit.
- 2. Bank credits, we do not charge.
- 3. We charge, bank does not credit.
- 4. We credit, bank does not charge.
Examples of transactions bringing about the above debits and credits are:
1. Protest fees charged against the depositor’s account, of which he has not been notified.
2. Interest on bank balance credited by bank before the depositor is notified.
3. Deposits made and charged to bank but not yet credited by bank or credited in error to some other depositor’s account.
4. Checks drawn but not yet presented to the bank for payment.
When the first method of reconciliation is used, items (1) and (3) must be added to the bank’s balance and items (2) and (4) must be subtracted from it in order to arrive at the cash book balance. The following problem will illustrate this:
Problem. In the bank’s statement of July 1, 19—, with a balance of $675, are included protest fees in connection with the collection of checks amounting to $7.50, and interest allowed on our average bank balance of $16.67. Our deposits for June 30, 19—, totaling $250 in the morning and $100 in the afternoon, have not been credited by the bank. Outstanding checks amount to $180. Our cash book balance on July 1, 19— was $835.83.