Bank Reconciliation Calculator
Compute adjusted bank and book balances and pinpoint any discrepancy. Enter known timing differences and adjustments on each side — the calculator shows whether your cash records are complete.
Adjusted bank balance exceeds adjusted book balance — investigate.
- 1
Adjusted bank balance
5,200 + 800 − 600 + 0 = 5,400Bank balance + deposits in transit − outstanding checks ± bank errors - 2
Adjusted book balance
5,150 + 50 + 0 − 25 − 75 + 0 = 5,100Book balance + bank interest + notes collected − service charges − NSF ± book errors - 3
Discrepancy
|5,400 − 5,100| = 300
How does this calculator work?
Adjusted bank balance = statement balance + deposits in transit − outstanding checks ± bank errors. Adjusted book balance = ledger balance + bank interest + notes collected − service charges − NSF checks ± book errors. Both adjusted figures should match; any remaining difference is an unlocated error requiring investigation.
Formula
How this is calculated
A bank reconciliation proves that the ending balance on the bank statement and the ending balance in the accounting ledger both represent the same underlying cash balance. The two figures differ because of timing and recording differences — not errors in most cases.
The bank-side adjustment adds deposits the company recorded and sent to the bank but which the bank had not yet posted by the statement date (deposits in transit), subtracts checks the company issued and recorded but the payee has not yet presented for payment (outstanding checks), and corrects any confirmed bank errors. After these adjustments, the bank side shows the "true" cash balance.
The book-side adjustment records items the bank processed during the period that the company has not yet entered in its ledger: interest the bank credited, notes or receivables the bank collected, service charges and fees debited, and NSF (non-sufficient funds) checks that bounced and were charged back. After these adjustments the book side should equal the same true cash balance. Any remaining discrepancy — the "difference" figure — signals an unlocated error: a transposition, a missed entry, or a timing item not yet identified.
Frequently asked questions
A deposit in transit is cash or a check your business has recorded in its books and physically deposited at the bank, but which the bank had not posted to the account by the statement cut-off date. It will appear on the following period's bank statement.
Outstanding checks (or outstanding payments) are checks your business has issued and recorded as cash disbursements in the ledger, but which the payees have not yet presented to the bank for clearing. They reduce the true cash balance but still appear as full cash on the current bank statement.
Re-examine each line item in both the bank statement and the ledger for the period. Common causes: a transposition error (e.g. $351 recorded as $315 — the difference will divide evenly by 9), a duplicate journal entry, a check posted for the wrong amount, or an omitted bank charge. Divide the discrepancy by 9 first — a clean quotient strongly suggests a transposition.
TG we-Calculate Editorial Team. (2026). Bank Reconciliation Calculator [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/bank-reconciliation-calculator
TG we-Calculate Editorial Team. "Bank Reconciliation Calculator." TG we-Calculate. 2026. https://we-calculate.com/calculator/bank-reconciliation-calculator.
TG we-Calculate Editorial Team, "Bank Reconciliation Calculator," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/bank-reconciliation-calculator
@misc{wecalculate_bank_reconciliation_calculator, title = {Bank Reconciliation Calculator}, author = {{TG we-Calculate Editorial Team}}, howpublished = {\url{https://we-calculate.com/calculator/bank-reconciliation-calculator}}, year = {2026}, note = {TG we-Calculate} }
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