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Generic Bank reconcilation EOM Book Balance Add: Unrecorded increases & + book error (s) (A) (B) EOM Bank Balance Add: Deposits in transit & + bank error(s) (E) (F) + + - (C) - (G) Deduc Unrecorded decreases & - book error (s) Deduct Outstanding checks - bank error(s) EOM Adjusted balance (D = EOM Adjusted balance (D) Details: (A) EOM Book Balance - the "book" balance is the general ledger balance for the checking account we wish to reconcile (B) Unrecorded increases - any increase in the checking account balance which has not been recorded in the general ledger account. These will be found on the bank statement and go unrecorded because the company is unaware of the transaction and/or the amount. I Examples 1 an incoming wire transfer 2 a bank charge reversal 3 interest earned on the account balance 4 credit card receipts (C) Unrecorded decreases - any decrease in the checking account balance which has not been recorded in the general ledger account. These will be found on the bank statement and go unrecorded because the company is unaware of the transaction and/or the amount. Examples 1 bank charges 2 deposited checks returned 3 automatic deductions 4 "direct" charges (D) EOH Adjusted balance: This is the mathematical total of A+B-C (E) EOM Bank Balance - the bank statement balance at the end of the month (F) Deposits in transit - these are deposits that WERE RECORDED on the company books as a debit (increase) to cash in checking but are not on the bank statement. DIT's result when there is a delay in the bank's recording of the transaction. A DIT will typically be the last deposit for the month found in the company CASH RECEIPTS JOURNAL (G) Outstanding checks: Checks issued and recorded which have not been to the bank. A two step procedure is used to find the full listing of outstanding checks: (1) With the checks in sequence compare the oldest checks to the list of outstanding checks on the previous month bank reconciliation. Some of these checks which were outstanding at the end of the previous month may remain Generic Bank reconcilation EOM Book Balance Add: Unrecorded increases & + book error (s) (A) (B) EOM Bank Balance Add: Deposits in transit & + bank error(s) (E) (F) + + - (C) - (G) Deduc Unrecorded decreases & - book error (s) Deduct Outstanding checks - bank error(s) EOM Adjusted balance (D = EOM Adjusted balance (D) Details: (A) EOM Book Balance - the "book" balance is the general ledger balance for the checking account we wish to reconcile (B) Unrecorded increases - any increase in the checking account balance which has not been recorded in the general ledger account. These will be found on the bank statement and go unrecorded because the company is unaware of the transaction and/or the amount. I Examples 1 an incoming wire transfer 2 a bank charge reversal 3 interest earned on the account balance 4 credit card receipts (C) Unrecorded decreases - any decrease in the checking account balance which has not been recorded in the general ledger account. These will be found on the bank statement and go unrecorded because the company is unaware of the transaction and/or the amount. Examples 1 bank charges 2 deposited checks returned 3 automatic deductions 4 "direct" charges (D) EOH Adjusted balance: This is the mathematical total of A+B-C (E) EOM Bank Balance - the bank statement balance at the end of the month (F) Deposits in transit - these are deposits that WERE RECORDED on the company books as a debit (increase) to cash in checking but are not on the bank statement. DIT's result when there is a delay in the bank's recording of the transaction. A DIT will typically be the last deposit for the month found in the company CASH RECEIPTS JOURNAL (G) Outstanding checks: Checks issued and recorded which have not been to the bank. A two step procedure is used to find the full listing of outstanding checks: (1) With the checks in sequence compare the oldest checks to the list of outstanding checks on the previous month bank reconciliation. Some of these checks which were outstanding at the end of the previous month may remain

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