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Page 2
2. Go through the bank statement line item by line item. For each check that is shown on the bank statement, find that check in your checkbook register and compare the dollar amounts to be sure that they match. If they do not match, see the WHAT TO DO IF YOU FIND AN ERROR section below. Put a checkmark next to the check # in your check register. This checkmark tells you that the check has been withdrawn from your account.
4. If there are any fees charged to your account, deduct them from your checkbook balance and mark them off just like the other cleared items. 5. On a piece of paper or the back of your bank statement write down all of the non-deposit transactions that are in your checkbook register without check marks. These are all of the transactions that you have completed but have not cleared your account yet. Add them up. 6. Now write down any deposits that are in your checkbook register that did not show up on the statement (the uncheck marked ones). Add them up. 7. Add the current balance in your checkbook register and the total of all outstanding transactions from Line #5 above. 8. Subtract the total deposits not accounted for (Line #6) from the above number (Line #7). 9. The number you end up with should match the ending balance on your bank statement. WHAT TO DO IF YOU DON'T BALANCE If the number you came up with does not match the ending balance on your bank statement, something is wrong. It could simply be a mathematical error. Maybe you made a simple mistake somewhere during the month when adding and subtracting your transactions. Maybe you made a simple mistake when doing the math during the balancing procedure. Start with the easiest first. Go back and check your math from the balancing procedure. If you do not find the error there, go back to the last time your checkbook was balanced and start recalculating everything, line item by line item. There are many ways to approach this particular part of the process. You have to find the way that you are most comfortable with. Some people find that if the ending balance on the bank statement and the ending balance from the balancing procedure aren't that far off, they simply make an adjustment to their checkbook balance to match the bank's balance. If the difference between the two is tolerable to you, this is definitely the easy way to balancing. All you have to do is determine the difference between the bank's ending balance and your ending balance. If the bank's balance is lower than yours, subtract the difference. If the bank's balance is higher than yours, add the difference.
The copyright of the article BALANCING YOUR CHECKBOOK - Page 2 in Financing a Mortgage is owned by Whitni Smith. Permission to republish BALANCING YOUR CHECKBOOK - Page 2 in print or online must be granted by the author in writing.
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