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May 14, 2008

What adjustment is needed when a check that was written in a previous month appears on the current month’s bank statement?

A check written in any previous month but not appearing on previous bank statements, should have been included in last month’s list of outstanding checks. Now that the check appears on the current month’s bank statement, the check should not be included in the current month’s list of outstanding checks. No other action is needed.

The general ledger account has always been correct, because the amount of the check reduced the general ledger account balance at the time the check was written and recorded.

The problem was the previous bank statements. The bank statement balances were too high since the check had not yet cleared the bank checking account. That’s why we subtract the amount of the outstanding checks from the bank statement balance. Now that the bank statement balance has been reduced by the check clearing the bank account, there is no longer a need to further subtract the amount of the check as outstanding.

Learn more about Bank Reconciliation. Also see our crossword and word scramble puzzles on bank reconciliations.

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Comments

12 Responses to “What adjustment is needed when a check that was written in a previous month appears on the current month’s bank statement?”

  1. Claudio IV Arnold A. Garcia on May 24th, 2008 2:10 am

    I just want to express my heartfet thanks to all of you. Its so great and fantastic, keep up the good works of this website, its so very helpfull to everybody..I LOVE U COACH

  2. affiong on June 3rd, 2008 4:51 am

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  3. madam on June 3rd, 2008 6:33 am

    A nice way to refresh your memory on some accounting issues.

    Keep up the good work!

  4. Seheer on August 6th, 2008 4:55 am

    i was not a accounting student,,,but it is very helpful to all those searching accounting theories..

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  5. Maxxie on October 6th, 2008 7:14 am

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  6. Joshua on October 14th, 2008 2:21 am

    I am using the proof of cash reconciliation. What would be the treatment of last month’s oustanding check still not cleared by the bank.

  7. Adnan on October 16th, 2008 10:39 pm

    How do I record this entry on the Bank Reconciliation statement ?
    Cash collected by XYZ on September 30 and recorded on the books, but not
    deposited until October 1, totaled $5,000.

  8. amydancery on November 29th, 2008 7:29 am

    That means in this case, i dun need to do anything in doing the bank reconciliation?

  9. aoife on February 5th, 2009 3:28 am

    thanks for the info here..it helped me through some difficulties in accounting..i hope you can post more info

  10. Martin on February 27th, 2009 4:34 am

    l thank you for your efforts, it is working.

    l have a worry. After up-dating the books, does the amounts in question have to affect the ledger accounts in any way?

    And what happens if a check does not appear in the next months statement?

    Martin.

  11. ask on August 18th, 2009 3:02 am

    very very good.

  12. Mark on October 5th, 2009 3:28 am

    Wow coach this is a great opportunity for me to visit this site because i have been given this duty to prepare da reconciliation
    Grateful
    Mark

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