Ensure ending reconciliation balances match
All we need to do from here is find the sum on the Bank's Cash Balance...
...and place it here...
Bank's Cash Balance
| Per Bank Statement | $850 |
| Checks outstanding | ($200) |
| Deposits outstanding | $170 |
| Bank error | $50 |
| Bank Balance per Reconciliation | $870 |
Company's Cash Balance
| Per General Ledger | $800 |
| Note receivable | $200 |
| Interest earned | $20 |
| Service fees | ($50) |
| NSF checks | ($100) |
| Company Balance per Reconciliation | ??? |
...and then find the sum on the Company's Cash Balance...
...and place it here:
Bank's Cash Balance
| Per Bank Statement | $850 |
| Checks outstanding | ($200) |
| Deposits outstanding | $170 |
| Bank error | $50 |
| Bank Balance per Reconciliation | $870 |
Company's Cash Balance
| Per General Ledger | $800 |
| Note receivable | $200 |
| Interest earned | $20 |
| Service fees | ($50) |
| NSF checks | ($100) |
| Company Balance per Reconciliation | $870 |
Since both ending balances equal $870, this validates that we've conducted our bank reconciliation correctly, and haven't missed any reconciliation items needed to get the bank and company on the same page before they move into the next month!