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Bank & Book Balance Reconciliation
Adjust bank and cash-book balances for outstanding checks, deposits in transit, collections, fees and interest, then compare the balances.
- Formula & worked example
- Private in your browser
- No signup
Calculator inputs
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How to use this calculator
- Enter the known values in the units shown. Results update as you type.
- Where results are editable, change one to solve backwards. Lock a value to hold it fixed.
- Use the worked example to check the method. Reset restores the starting fields.
Use the result with context
Results are estimates for planning and education. Confirm rates, taxes, fees, and legal requirements with the relevant institution or a qualified professional before making a financial decision.
Formula and method
A book balance of 1,000 plus 200 of bank collections and 10 interest, less 100 payments and 10 charges, becomes 1,100. A bank balance of 900 plus 300 deposits in transit less 100 outstanding checks also becomes 1,100.
Adjusted book = book + collections + interest − payments − fees − NSF checks; adjusted bank = bank + deposits in transit − outstanding checks
Worked example
Enter these known values and leave the other values blank.
- Cash book balance
- 1000 USD
- Collections received by bank, not yet in books
- 200 USD
- Bank payments not yet in books
- 100 USD
- Bank charges
- 10 USD
- NSF cheques
- 0 USD
- Bank interest not yet in books
- 10 USD
- Bank balance
- 900 USD
- Deposit in transit
- 300 USD
- Outstanding checks already in books
- 100 USD
- Adjusted book balance
- 1100 USD
- Adjusted bank balance
- 1100 USD
- Unreconciled difference
- 0 USD
Assumptions and limitations
- Use balances at the same cutoff date and one currency. Starting and adjusted balances may be negative for an overdraft.
- Each adjustment is entered as a nonnegative amount in its named category. Include only items missing from the relevant side, so an already-recorded item is not counted twice.
- A receivable means a collection made by the bank but not yet recorded in the books, not the entire accounts-receivable balance.
- The difference is an absolute amount, so it does not identify which side is higher. A zero difference establishes numerical agreement, not that every underlying transaction is correct.
- Bank errors, book errors and other adjustments without a dedicated field must be investigated and corrected separately before entering the balances.
Common questions
Does a zero difference finish the accounting work?
It shows the adjusted balances agree. Supporting transactions still need review and unrecorded book items may need journal entries.
References
Bookify requires outstanding checks to be a nonnegative adjustment, consistent with the other named reconciliation categories.
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