Balancing a Check Register:

Balancing a Check Register:

• Check Register: A personal record of the transactions against a checking account

Balancing a Check Register:

• Check Register: A personal record of the transactions against a checking account

• Balancing: Calculating the balance of the account after all transactions are processed

Reasons to Keep a Balanced Check Register:

1. Control- Know exactly how much is in an account at any given

time

2. Ease of Access- Websites can be down, a book is always available

3. Record of Payment- Know the exact dates and check numbers used to pay

bills

4. Budgeting- Identify recurring charges and places to reduce expenses

Check Registers Should Include:

• Check number (if applicable)• Type of transaction• Date of the transaction or that the check was

written• Name of who the check was written to• Description• Amount of the Transaction• Account balance after the transaction is

processed

Example: On March 28th you write a check #117 to your friend Peter Piper for a peck of pickled peppers. The cost of the peppers is $20. Record the transaction on the register below.

Check No. Date Description Payment/

DebitDeposit/Credit Fees Balance

- 3/23/12 Balance Brought Forward $4,617.21

D 3/25/12 Deposit - Paycheck $785.34 $5,402.55

116 3/27/12 Electrolux – Electric Bill $112.44 $5,290.11

Example: On March 29th you withdraw $20 from an ATM. Record the transaction in the check register.

Check No. Date Description Payment/

DebitDeposit/Credit Fees Balance

- 3/23/12 Balance Brought Forward $4,617.21

D 3/25/12 Deposit - Paycheck $785.34 $5,402.55

116 3/27/12 Electrolux – Electric Bill $112.44 $5,290.11

Reconciling a Bank Statement:

Reconciling a Bank Statement:

Reconcile: To make adjustments to a check register and bank statement to make the balances equal each other.

How to Reconcile a Bank

1. Compare the check register to the bank statement – look for transactions that appear on one and not the other

How to Reconcile a Bank

1. Compare the check register to the bank statement – look for transactions that appear on one and not the other

2. Verify that any differences are accurate

How to Reconcile a Bank

1. Compare the check register to the bank statement – look for transactions that appear on one and not the other

2. Verify that any differences are accurate3. Add any transactions to the check register

that appear on the statement and not the register

How to Reconcile a Bank

1. Compare the check register to the bank statement – look for transactions that appear on one and not the other

2. Verify that any differences are accurate3. Add any transactions to the check register that

appear on the statement and not the register4. Add any transactions to the statement that

appear in the register and not on the statement