How To Do a Bank Reconciliation, Prepare Worksheet

There are numerous courses of actions in reconciliation of bank statements and settlement of cash equilibrium. By selecting an appropriate method of preparation of a bank statement or bank reconciliation statement, the cash statements and bank balance can be reconciled. It’s very important to understand about scratch preparation for team worksheet. A few steps of a prescribed method are given below:

Here i’m uploaded format of bank reconciliation statement in excel, so download and make a note on it.

Things Need to do a Bank Reconciliation Worksheet

Here I’m going to explain step by step process of preparing statement in professional way without any error.

Step1: Payment and Withdrawal Estimation

First of all, the cash available in a bank account is determined and all the cash payments and withdrawal is estimated. All cash receipts and cheque payment history is retrieved. The details of the cheque withdrawals and deposits are also accessed.

Step2: Identify Exact Amount

Identify the cheques and cash amounts that have not been processed by the ban whether you have submitted them in your bank account. Determine the credited and debited cash in your account.

Step3: Record Error

Identify if there has taken any error in recording of cash payment or receipt either by you or by the bank authorities. Mark corrections for these errors and mention on your account reconciling statement.


Mention all details of your withdrawals and deposits history pertinent to your bank account on your bank reconciling report. Write the date, amount, and debit/credit nature of each transaction that took place for your bank account. Include all transactions whether took place in the form of cash transactions, bank drafts or cheques. Make sure you have made separate sections for debit and credit in your cash reconciling statement. One section will fall for the withdrawals while other will represent the cash additions made in your total cash amount in your bank account on specific dates.


Step-5: Aware of Cash Transaction

After you have written all the transactions in debit and credit as per the nature of each transaction, you need to find the total of all withdrawals and deposits of your bank account. For this, you need to add all the cash amounts mentioned in debit section and find the debit-section total. Also find the total of credited amounts mentioned in the credit section. This is the most critical step of bank reconciliation.

Note: Error In Adding Debit/Credit Amount

Make sure you perform no errors in adding the amounts. Besides, you would not be able to find the true total of debit and credit if you have not written the amounts in their respective correct sections. Therefore, write the debited amounts in debit section only and do not intermingle it in the credit section.

Step:6 Deposit Total and Withdrawals

Find the deposit total and withdrawals totals. Deposits represent additions in your cash amount while withdrawals represent deductions from your total cash amount. After you have subtracted the total withdrawals amount from your total deposits amount, you will get the total cash amount available in your bank account. Make sure the amount determined is correctly representing your bank account balance. For preparing financial statement of any project planning, note down these all mentioned points.

I’m sure you learn about How To Do a Bank Reconciliation. You can follow the same procedure on weekly, monthly, semi-annually, or annually to reconcile your bank account.


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