Bank Reconciliation Format



A bank reconciliation is a process that accounts for the difference in the cash balance per bank statement and the cash balance per books of the company. There are 3 basic formats that can be used used in reconciling the items of the book balances and bank balances.

3 Bank Reconciliation Formats

  1. Adjusted Balance Method Bank Reconciliation Format - This method of preparing a bank reconciliation statement results in the computation of the correct cash balance.
  2. Book to Bank Method Bank Reconciliation Format - This method of presenting a bank reconciliation starts with the unadjusted book balance and ends with the unadjusted bank balance. The correct or adjusted cash balance is not shown.
  3. Bank to Book Method Bank Reconciliation Format - This is method is simply the opposite of the book to bank method wherein the statement starts with the unadjusted bank balance and ends with the unadjusted book balance. It also doesn't show the correct cash balance.

 

 

Adjusted Balance Method Bank Reconciliation Format

adjusted balance methodThe adjusted or correct cash balance is shown at the bottom of the statement. This is the cash that is reported in the statement of financial position.




Book to Bank Method Bank Reconciliation Format

bank reconciliation format

Notice that the end result of this format is not to show the adjusted cash balance but to show that the unadjusted cash balance could be derived starting from the unadjusted book balance and taking into account the reconciling items.

Bank to Book Method Bank Reconciliation Format

bank reconciliation format

Similar to the book to bank format, the end result of this format is not to show the adjusted cash balance. This bank reconciliation statement shows the unadjusted book balance by starting with the unadjusted bank balance and taking into account the various reconciling items.