Balance Per Records
In this section of the bank reconciliation, we are trying to take our records and adjust them based on the bank's records. We must look for items that the bank would know about that we would not. These items could include the following:
- automatic deductions from your account,
- bank charges,
- interest on your bank account, and
- other debit/credit memoranda.
Start with either your previous cash balance from your most recent balance sheet or bank reconciliation. MMM's records show an opening cash balance of $2,550.42, which can be found on the most recent bank reconciliation (Exhibit 4). The start of your bank reconciliation should look like this:
