Bank Reconciliation Example With Real Numbers
One synthetic example shows every number on the bank side and book side, including the four adjustments that require entries.
The completed reconciliation
This synthetic bank reconciliation finishes with an adjusted bank balance of $13,050 and an adjusted book balance of $13,050. The final difference is $0.00. Each adjustment has an evidence ID so the zero is supported by records rather than an unexplained plug.
The bank statement closes at $12,480. The cash ledger shows $13,665 before month-end adjustments. That raw $1,185 gap is expected because the two records have different timing and one record contains an error.
| Measure | Amount | Result |
|---|---|---|
| Bank statement ending balance | $12,480.00 | Starting bank balance |
| Book balance before adjustments | $13,665.00 | Starting book balance |
| Adjusted bank balance | $13,050.00 | After bank-side adjustments |
| Adjusted book balance | $13,050.00 | After book-side adjustments |
| Final difference | $0.00 | Reconciled |
Source facts for the example
Start with records, not a target balance. The statement supplies the bank balance and three bank-only items. The ledger, deposit receipt, and check records supply the timing items and book balance. A bank support case documents the disputed bank error.
Positive adjustments increase the side on which they appear. Negative adjustments decrease it. The evidence IDs carry through the worksheet so a reviewer can trace every amount.
| ID | Source fact | Amount | Where it belongs |
|---|---|---|---|
| E-01 | Bank statement ending balance | $12,480.00 | Bank starting balance |
| E-02 | Deposit recorded in books but not yet posted | $1,850.00 | Add to bank side |
| E-03 | Check #2048 recorded but not cleared | $620.00 | Subtract from bank side |
| E-04 | Check #2049 recorded but not cleared | $910.00 | Subtract from bank side |
| E-05 | Wrong debit charged by the bank | $250.00 | Add to bank side pending correction |
| E-06 | Book balance before adjustments | $13,665.00 | Book starting balance |
| E-07 | Interest shown by bank but absent from books | $15.00 | Add to book side |
| E-08 | Service fee absent from books | $35.00 | Subtract from book side |
| E-09 | Returned customer payment absent from books | $450.00 | Subtract from book side |
| E-10 | A $540 check recorded as $395 | $145.00 | Subtract correction from book side |
Step 1: adjust the bank balance
Begin with the $12,480 statement ending balance. Add the $1,850 deposit in transit because the books already include it but the bank has not posted it. Subtract the two outstanding checks because the books already reduced cash but the bank has not yet cleared them.
The bank charged a $250 debit to the wrong account. Add that amount on the reconciliation while the bank investigates and corrects it. This does not rewrite the bank record. It preserves the evidence and shows why the issued statement is temporarily understated.
$12,480 + $1,850 - $620 - $910 + $250 = $13,050 adjusted bank balance.
| Bank-side item | Calculation amount | Running balance |
|---|---|---|
| Statement ending balance | $12,480.00 | $12,480.00 |
| Add deposit in transit | +$1,850.00 | $14,330.00 |
| Subtract check #2048 | -$620.00 | $13,710.00 |
| Subtract check #2049 | -$910.00 | $12,800.00 |
| Add bank error | +$250.00 | $13,050.00 |
Step 2: adjust the book balance
Begin with the $13,665 cash ledger balance. Add $15 of interest first reported on the bank statement. Subtract the $35 service fee and $450 returned customer payment because the bank recorded both before the books did.
The books show a check as $395, but the source check is $540. Cash is overstated by $145, so subtract the difference. Do not subtract the whole check again because the ledger already contains $395 of it.
$13,665 + $15 - $35 - $450 - $145 = $13,050 adjusted book balance.
| Book-side item | Calculation amount | Running balance |
|---|---|---|
| Book balance before adjustments | $13,665.00 | $13,665.00 |
| Add interest earned | +$15.00 | $13,680.00 |
| Subtract service fee | -$35.00 | $13,645.00 |
| Subtract returned payment | -$450.00 | $13,195.00 |
| Subtract check correction | -$145.00 | $13,050.00 |
Step 3: record the book-side entries
OpenStax distinguishes between timing items already recorded by the company and transactions the bank knows about first. The timing items do not need a second book entry. Interest, fees, returned payments, and bookkeeping errors do because the ledger is missing or misstating them.
The account names below are examples. Use the accounts and approval rules in your own chart of accounts. The bank error receives no journal entry while the bank is responsible for correcting it, but it still needs documented follow-up.
| Adjustment | Debit | Credit | Amount |
|---|---|---|---|
| Interest earned | Cash | Interest income | $15.00 |
| Service fee | Bank fee expense | Cash | $35.00 |
| Returned payment | Accounts receivable | Cash | $450.00 |
| Check recording error | Original expense or payable account | Cash | $145.00 |
What a $0.00 difference does not prove
A zero difference confirms that the listed adjustments make the two adjusted balances equal. It does not prove that every transaction is present. An omitted deposit and omitted payment of the same amount could cancel each other while the arithmetic still reaches zero.
Count rows, trace every adjustment to evidence, inspect duplicate amounts, and compare the first and last transaction around each page break. Wolters Kluwer also recommends comparing bank-statement activity with the accounting records and investigating differences between the adjusted bank balance and the general ledger.
- Confirm the account and cutoff date on both records.
- Tie every timing item to a deposit record, check record, or later clearing evidence.
- Record bank-only activity before accepting the adjusted book balance.
- Carry unresolved items forward by evidence ID, not by a typed plug.
- Have another person review the reconciliation when your controls require it.
Download the worked Excel reconciliation
The workbook contains a Reconciliation sheet and an Evidence and entries sheet. Replace the blue synthetic inputs with your source facts. Formulas calculate each adjusted balance, the final difference, and the reconciliation status.
If the bank supplied only a PDF, StatementMint can convert entitled pages into CSV or Excel rows with Date, Description, and signed Amount. Review those rows against the PDF, then use the cleaned transaction list beside your ledger and this reconciliation worksheet. StatementMint does not post journal entries or reconcile your accounting system.
Before you call it done
- Use the same account and August 31 cutoff on both sides
- Confirm the $12,480 statement balance from the issued statement
- Tie the deposit and outstanding checks to source records
- Document the $250 bank error and follow up with the bank
- Record interest, the service fee, and the returned payment in the books
- Correct only the $145 check understatement
- Confirm both adjusted balances equal $13,050
- Confirm the final difference is $0.00
- Check transaction completeness before reviewer sign-off
Frequently asked questions
What is a simple bank reconciliation example?+
Start with the statement ending balance, add deposits in transit, subtract outstanding payments, and adjust for bank errors. Separately, start with the book balance and record bank-only credits, bank-only debits, and book corrections. The two adjusted balances should agree.
Why do you subtract outstanding checks from the bank balance?+
The books already reduced cash when the checks were recorded, but the bank has not cleared them. Subtracting them from the statement balance puts the bank side on the same timing basis as the books.
Why do you add a deposit in transit?+
The books already include the deposit, but the bank statement does not. Adding it to the bank side accounts for that timing difference without recording the deposit twice.
Which reconciliation items need journal entries?+
Items first learned from the bank and book errors usually need entries. In this example, interest, the service fee, the returned customer payment, and the $145 recording correction update the books. The timing items do not.
Does a $0.00 reconciliation difference prove the records are complete?+
No. Equal and opposite omissions can cancel out. Confirm row counts and trace each transaction or adjustment to its source before sign-off.
Does StatementMint complete the bank reconciliation?+
No. StatementMint converts entitled statement pages into CSV and XLSX rows with Date, Description, and signed Amount. You review the rows and complete the accounting reconciliation with your ledger and source records.
Sources and further reading
We prioritize regulators, public agencies, and first-party product documentation. Sources support the general guidance above; StatementMint’s workflow recommendations are our own.
Educational information only—not financial, accounting, tax, or legal advice. Institution terms and your facts control.