What it is
A bank reconciliation agrees the balance per bank statement to the balance per general ledger at month or year end, and explains every difference.
This workbook has the reconciliation on one sheet with formulas, and separate listings for deposits in transit and outstanding checks that feed it. The difference cell shows zero when the reconciliation is done.
When to use it
- Month-end close for every bank account.
- Year-end audit: test the client’s reconciliation or prepare one.
What’s inside
- Bank side: balance per statement, deposits in transit, outstanding checks, other items
- Book side: balance per GL, bank charges, interest, NSF items, errors
- Difference check cell with conditional formatting
- Listings of deposits in transit and outstanding checks with totals
- Preparer and reviewer sign-off
Standard cited
This template follows Cash (AU-C 500 evidence). It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use. See AU-C 500 explained.
Questions
What goes on the book side vs the bank side?
Items the bank has recorded but the books have not (bank fees, interest, NSF checks, direct debits) go on the book side and need a journal entry. Items the books have recorded but the bank has not yet (deposits in transit, outstanding checks) go on the bank side.
How should an auditor test a bank reconciliation?
Agree the bank balance to the confirmation or statement, the book balance to the GL, and trace reconciling items to the subsequent month’s statement. Investigate old outstanding checks and large or unusual items.
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Last updated 11/04/2026. All free templates.