Bank Reconciliation Four Column

Consist of reconciliation beginning of the period cash balances, current period of cash receipt, current
period of cash disbursement, and end of period cash balances.

Example:
1. Cash balances as of October 31, 1992, per bank statement was 17,520
2. Cash balance as of October 31, 1992 per Nugget’s book was 18,020
3. The total cash receipt per November 1992 bank statement are 96,450; including deposit in transit
of 4,200 at October 31
4. Total cash receipts per Nugget’s book during November are 95,330
5. Total cash disbursements per bank statement for November are 91,780; including 3,700 the
check outstanding at October 31
6. Total cash disbursement per book during November are 92,848

Reconciling items:
1. A deposit of $3,680 was mailed November 30 but does not appear on the bank statement.
2. Check written in November but not charged to the November bank statement are $5,001
3. Nugget has not yet recorded the $600 of interest collected by the bank Nov 20 on Sequioa Co.
bonds held by the bank for Nugget
4. Bank service charges of $18 are not yet recorded on Nugget’s books
5. One of the Nugget’s customer’s checks for $220 was returned with the bank statement and
marked NSF. The bank treated this check as disbursement.
6. Nugget discovered that check #7322, written in November for $131 in payment of an account
payable, had been incorrectly recorded in their books as $311
7. A check for Nugent Oil Co. in the amount of $175 accompanied the bank statement that had
been incorrectly charged to Nugget Mining

Bank Balance and Book Balance to Corrected Balance Form

Nugget Mining Company

Proof of Cash for November 1992
Denver National Bank-Checking Account

Balance November Balance

Oct, 31 Receipt Disbursement Nov,30
Per bank statement 17,520 96,450 91,780 22,190
Deposits in transit
At October 31 4,200 (4,200)
At November 30 3,680 3,680
Outstanding checks
At October 31 (3,700) (3,700)
At November 30 5,001 (5,001)
Bank error-incorrect check charged
by bank (175) 175
Correct amount 18,020 95,930 92,906 21,044

Per books 18,020 95,330 92,848 20,502

Interest collected by bank 600 600
Error in recording check #7322 (180) 180
Unrecorded service charges at Nov 30 18 (18)
NSF checks returned 220 (220)
Correct amount 18,020 95,930 92,906 21,044
Bank to Book Form
Nugget Mining Company
Proof of Cash for November 1992
Denver National Bank-Checking Account

Balance November Balance

Oct, 31 Receipt Disbursement Nov,30
Per bank statement 17,520 96,450 91,780 22,190
Deposits in transit
At October 31 4,200 (4,200)
At November 30 3,680 3,680
Outstanding checks
At October 31 (3,700) (3,700)
At November 30 5,001 (5,001)
Bank error-incorrect check charged
by bank (175) 175
Interest collected by bank 600 600
Error in recording check #7322 (180) 180
Unrecorded service charges at Nov 30 18 (18)
NSF checks returned 220 (220)
Correct amount 18,020 95,330 92,848 20,502