Question

Number each of the following steps from 1 to 7 to identify the steps needed to reconcile a bank statement. (The model in the presentation uses the same sequence with a different numbering system.)

1. Check to be sure that all deposits included in your record book are included and service charges are subtracted.
2. Make a list of outstanding checks, with the amounts for which they were written
3. The statement should agree with your check register.
4. Subtract the outstanding checks from the ending balance.
5. After checking for service charges, check the bank statement for other charges.
6. On the bank statement, find the amount the bank has credited you. It is called "ending balance.
7. Arrange all of the canceled checks in numerical order.

Answer 1

1. Arrange all of the canceled checks in numerical order.

2. Make a list of outstanding checks, with the amounts for which they were written.

3. On the bank statement, find the amount the bank has credited you. It is called "ending balance.

4. Subtract the outstanding checks from the ending balance.

5. Check to be sure that all deposits included in your record book are included and service charges are subtracted.

6. After checking for service charges, check the bank statement for other charges.

7. The statement should agree with your check register.

Step-by-step explanation:

First arrange arrange the cancelled checks numerically, list all outstanding checks also referred to as unrepresented checks to know amount recorded in the firm book not in the bank statement, Also check the bank statement to identify the ending balance, then deduct the unrepresented or outstanding checks from the ending balance. check to be sure there are no un-credited checks and bank charges, ensure they are deducted. This will agree the bank statement with the cash book