1. BANKING PART 7 CHECKBOOK BALANCING Mr. Stasa – http://northbiz.weebly.com

2. By the end of today’s lesson you will be able to do the following: 1.Understand the importance of balancing a checkbook 2.Understand the differences between an outstanding check and outstanding deposit 3.Balance a checkbook

3. What do you Need? 1.Checkbook register 2.Recent bank statement 3.Reconciliation form

4. Why Reconcile? Allows you to check your bank statement and checkbook register for errors Maintain an accurate account balance Alert of identity theft early on

5. n Outstanding checks are checks which have been issued by the payer (you), but have not yet been printed on a bank statement. Outstanding deposits are deposits made at a bank but have not yet been printed on a bank statement. n A bank reconciliation form accounts for the differences between the bank statement and a checkbook balance

6. Checkbook Register Bank Statement

7. register 5/5/15 Account Fee 10 00 41 89 10 00 register balance 31 89 5/5/15 30 00 75 00 30 00 105 00 10023 11 73 11 31 89 10150 00 Our checkbook register has an ending balance of $41.89 and our bank statement has a balance of $75.00. We have two outstanding checks: #100 for $23.11 and #101 for $50.00. We have one outstanding deposit for $30.00. There is one account fee for $10.00

8. You should now be able to do the following: 1.Understand the importance of balancing a checkbook 2.Understand the differences between an outstanding check and outstanding deposit 3.Balance a checkbook