Bank Reconciliation Calculator
Reconcile your accounting records against your bank statement. Enter your book (ledger) balance plus the usual reconciling items — outstanding cheques, deposits in transit, and bank fees — and the calculator works out the adjusted bank balance, the adjusted book balance, and whether the two agree.
Formula
Adjusted Bank = Book − Outstanding Checks + Deposits in Transit
- Adjusted bank balance = book balance − outstanding cheques + deposits in transit.
- Adjusted book balance = book balance − bank fees (and any other charges your ledger hasn't recorded yet).
- When the reconciliation is correct, the adjusted bank balance and adjusted book balance match — the difference is zero.
- Outstanding cheques are payments you've recorded but the bank hasn't cleared; deposits in transit are receipts you've recorded but the bank hasn't posted.
- A non-zero difference flags an error or a missing item — review for unrecorded fees, interest, or transposed figures.
Book balance 250,000 with reconciling items
Inputs
- Book Balance (PKR): 250000
- Outstanding Checks (PKR): 30000
- Deposits in Transit (PKR): 45000
- Bank Fees (PKR): 1500
Adjusted bank = 250,000 − 30,000 + 45,000 = 265,000. Adjusted book = 250,000 − 1,500 = 248,500. The 16,500 difference shows items still need investigating before the books balance.
Frequently asked questions
What is a bank reconciliation?
It's the process of comparing your own accounting records with your bank statement and adjusting for timing differences and charges, so both show the true cash balance.
What are outstanding cheques?
Cheques you've written and recorded in your books but which haven't yet cleared the bank. They reduce the bank balance once they clear, so they're subtracted in the reconciliation.
What are deposits in transit?
Money you've received and recorded but which the bank hasn't posted yet — for example a late-day deposit. They're added to the bank balance to reconcile.
Why don't my balances match?
A non-zero difference usually means a missing item such as a bank fee, interest, an error in recording, or a transposed number. Recheck each entry until the difference is zero.
How often should I reconcile?
Most businesses reconcile every month when the statement arrives. Reconciling regularly catches errors and fraud early and keeps your cash figure reliable.