Drag & Drop Bank Reconciliation

Drag the transactions from the pool into the correct 'Additions' or 'Deductions' category for either the Bank Statement or the Company Books.

Transaction Pool (Drag Items)

Reconciliation of Bank Statement

Additions (Deposits in Transit, Bank Errors +):

Deductions (Outstanding Checks, Bank Errors -):

Reconciliation of Company Books

Additions (Interest, Note Collection, Book Errors +):

Deductions (NSF, Service Fees, Book Errors -):

Reconciliation Results

Reconciled Bank Balance:

$0.00

Reconciled Book Balance:

$0.00

Drag transactions to start.

Glossary and Reference: Key Reconciling Items

A bank reconciliation is complete when both the Bank Statement Balance and the Company Book Balance agree after all adjustments. [Image of a bank reconciliation flowchart]

Adjustments to the BANK STATEMENT Balance (Timing Differences)

Term Definition Action
**Deposit in Transit** (DIT) A cash deposit recorded by the company but not yet received or posted by the bank by the statement date. ADD
**Outstanding Check** (O/S) A check issued and recorded by the company, but not yet cleared the bank account (the recipient hasn't cashed it). DEDUCT
**Bank Error (+)** An error by the bank that incorrectly reduced your balance (e.g., bank deducted another client's check). ADD
**Bank Error (-)** An error by the bank that incorrectly increased your balance (e.g., bank credited another client's deposit). DEDUCT

Adjustments to the COMPANY BOOK Balance (Requires Journal Entries)

Term Definition Action
**Bank Service Charge** Fees charged by the bank for services (maintenance, processing) that the company must record upon seeing the statement. DEDUCT
**NSF Check** (Not Sufficient Funds) A customer's check bounced due to insufficient funds. The bank deducted this amount; the company must record the reduction and liability. DEDUCT
**EFT Collection / Interest** Electronic transfers or interest revenue collected by the bank on the company's behalf (Credit Memo). The company must record the cash increase. ADD
**Book Error (+/-)** An error made by company staff when recording a transaction (e.g., recording a check for the wrong amount). Must be corrected. ADD or DEDUCT

Note: Only adjustments to the Company Book Balance require a journal entry to update the Cash account.