AccountingHub
P2

Two books, one true balance

Sort each item to the bank side or the book side until the two adjusted balances match.

0 of 7 sorted
Unsorted
Deposit made Oct 31, not yet on the statement
Outstanding checks #102 ($350) and #120 ($150)
Bank collected a $500 note plus $30 interest
Interest earned on the account
Bank service fee
Customer's check returned NSF
Check #118 for $56 to a supplier recorded in books as $65
Bank side
Statement balance$2,050
Adjusted bank balance$2,050
Book side
Cash account balance$1,383
Adjusted book balance$1,383

A explains why the and the books disagree. A and are already recorded — the bank just has not caught up, so they adjust the bank side only.

Everything the bank knew before the company did — a collected note, interest, a fee, an , a recording error — adjusts the book side, and each one needs its own entry to bring the books current.