Bank Reconciliation & Parts of a Bank Check

Bank Reconciliation 

is the process of bringing the bank's monthly report for each depositor showing deposits made, check written, cancelled checks, and service charges. Checkbook contains checks and check stubs. The checks are filled out by the depositors made, and of charges made by the bank. Reconciliation statement putting an agreement the bank statement balance and the checkbook balance

The differences in the balances may be due to:

  1. Outstanding checks. These are checks issued by the depositor but have not yet been presented to the bank for payment.

  2. Deposits in transit. These are deposits made but late to be included in the monthly bank statement.

  3. Service charges.

  4. Errors in the check stub entries.

  5. Cancelled checks. These are checks that have been paid by the bank.

Parts of a Bank Check

a. Account Number

b. Account Name

c. Check Number

d. Pay to the order of

The picture below is an example of a bank check that I've got from this  link. It also shows how to write the money value into figures and in words. Lastly, just a reminder to all those who receive, will receive or who got bank checks out there, be very careful in using or receiving it.  That's all, hope this post would help you and continue to stay tune for the next upcoming lessons. Enjoy! 

Checked by Prof. Crisencio Paner