Bank Reconciliation Statement (Cash Book vs Bank)
Your books and your bank statement, matched — every difference explained.
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- Free preview: every count and whether the difference is explained, with the first rows of each list (up to 10) and the amounts hidden.
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Bank statement
Columns
Your books
Columns
The reconciliation
Carried forward from last month optional
Last month’s open items — cheques not yet presented, deposits not yet credited — are no longer in this month’s books, but they may clear on this statement. Add the open-items file this tool made last month.
Bank reconciliation
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Bank reconciliation statement
| Particulars | Items | Amount |
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The items
A working for your records, not an audit opinion. Check each open item against its voucher or the bank’s advice before you pass entries.
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Results are estimates for general information and planning, not financial advice. Banks and institutions may calculate differently (rounding, fees, rate changes). Confirm figures with your lender or a qualified adviser before deciding.
About the Bank Reconciliation Statement (Cash Book vs Bank)
Every month the bank account in your books and the bank statement end on different balances, and the difference has to be explained item by item: cheques you issued that have not been presented, deposits the bank has not credited yet, charges and interest the bank booked that you have not, and the odd mistake. That explanation is the bank reconciliation statement.
Drop the bank statement (CSV or Excel from your bank, or the statement PDF, read on your device) and the bank ledger or cash book you export from Tally, Zoho Books, QuickBooks, Busy or a spreadsheet. The entries are matched by amount within a date window and by cheque, UTR or reference number — including one deposit on the statement against several receipts in the books — and what is left is sorted into the four groups of the statement, from the balance as per the books to the balance as per the bank, with the difference that is still unexplained, if any. You also get the entries to pass for what the bank did that the books do not show, the likely errors, and the open items to carry to next month. Nothing is uploaded.
Without a pass the result is a free preview: every count and whether the difference is explained, with the first rows of each list and the amounts hidden; the statement and the files unlock with a Premium pass.
How to use it
- From your internet banking, get the bank statement for the month — CSV or Excel is best; a PDF statement with text works too — and drop it into step 1.
- From Tally, Zoho Books, QuickBooks, Busy or your spreadsheet, get the bank ledger (or the bank column of your cash book) for the same month and drop it into step 2. Check the Columns of each: the date, the particulars, the reference, and money in and out are found from the headings; correct any that are wrong, and they are remembered for the next file with the same headings.
- Check the period and the balances: they are read from the files (closing rows, the balance column) and stay editable. Add last month’s open items if you have them, so cheques issued last month that clear now are matched.
- Read the statement and the items: what the bank has not paid or credited yet, what it booked that the books do not show (with the entry to pass), the possible errors, and the matches.
- The PDF statement, the Excel workbook, the open items for next month and the entries for Tally unlock with a Premium pass; the free preview shows the counts and the first items.
Examples
Balance as per the books 126,350.00 Cheque 000453 issued on the 30th, not presented: 14,800.00 Transfer from a customer and interest on the statement only: 31,860.00 + 1,284.00 Cheque deposited on the 27th, not credited: 92,000.00 SMS charges on the statement only: 17.70
126,350.00 + 14,800.00 + 33,144.00 − 92,000.00 − 17.70 = 82,276.30 The statement shows 82,276.30: reconciled, nothing left unexplained
Books: receipts of 45,000, 18,500 and 11,500 on the 2nd · Statement: one clearing credit of 75,000 on the 3rd
Matched as one deposit of the three receipts
Books: cheque 000777 for 5,400 · Statement: cheque 000777 for 4,500
Possible error: the same cheque with different amounts; the difference divides by 9, which often means two digits were swapped
Common uses
- Month-end close: the bank reconciliation an auditor asks for, in minutes.
- Finding cheques that were never presented, or deposits that never reached the bank.
- Catching bank charges, interest and direct receipts that were not entered.
- An accountant or CA reconciling a client’s accounts from their exports.
The statement
It starts from the balance as per the books on the reconciliation date (a debit balance when the bank holds your money, a credit balance for an overdraft) and works to the balance as per the bank statement:
- Add cheques issued and payments recorded that the bank has not paid yet, and money the bank has credited that the books do not show yet (interest, direct transfers).
- Less cheques deposited and receipts recorded that the bank has not credited yet, and money the bank has debited that the books do not show yet (charges, standing instructions, returned cheques).
When the result equals the balance on the statement, every difference is explained. When it does not, the difference left is shown with the likely reasons — an item on the wrong side, a balance of another date, last month’s open items, or entries missing from one file.
How entries are matched
- The same cheque, UTR or reference number and amount, at any date in the period: a cheque can take weeks to be presented.
- The same amount and direction within the days the bank may take (10 by default), the nearest date first, then the most words in common.
- One entry against several: a paying-in slip of several cheques is one credit on the statement; one book entry may be several bank lines. Up to six entries whose amounts add up exactly.
What is left is listed by group. Entries made twice, a receipt entered as a payment, and the same reference with a different amount are listed as possible errors.
Entries to pass and next month
For each item the bank booked that the books do not show, the list says what it is — bank charges, interest credited or debited, a standing instruction, a returned cheque, a direct receipt or payment — and the entry it needs. They can be exported as statement lines for the Bank Statement to Tally tool, which turns them into vouchers.
The items still open in the books (cheques not presented, deposits not credited) are the start of next month’s reconciliation: export the open items and add them next month, and they are matched when they clear.
Sources
- The Institute of Chartered Accountants of India, Foundation Course study material, Accounting: the bank reconciliation statement — its purpose, the causes of difference and the format from the cash book to the pass book.
Limitations
- It reads what the files contain: a PDF statement must have text (a scan has none), and an export must cover the whole bank account for the period.
- Amounts match exactly; a bank that deducts a charge from a receipt shows as an open item and a possible error, not as a match.
- A cheque without its number in either file is matched by amount and date only, so two cheques of the same amount close together may pair the other way round.
- It suggests entries; it does not post them, and every open item should be checked against its voucher or the bank’s advice.
- A working for your records, not an audit opinion.
Privacy
The statement and the books are read in this browser and never uploaded or stored. Your column choices are remembered in this browser for the next file with the same headings.
Frequently asked questions
What do I get without a pass?
Without a pass, Bank Reconciliation Statement (Cash Book vs Bank) shows every count and whether the difference is explained, with the first rows of each list (up to 10) and the amounts hidden. Until you unlock it, the result can’t be downloaded or copied. A Premium or Ultimate pass, a one-time payment that never renews, unlocks the full result. The pricing page lists the passes and their prices.
What is a bank reconciliation statement?
A statement that explains why the bank balance in your books differs from the balance on the bank statement on the same date, item by item: cheques issued but not presented, deposits not yet credited, and the bank’s own charges, interest and direct entries that the books do not show yet.
Which files does it read?
Any CSV or Excel file with a row of headings: the bank statement from your bank (or its PDF, if it has text), and the bank ledger or cash book from Tally, Zoho Books, QuickBooks, Busy or a spreadsheet. A single amount column with a Dr/Cr column works too.
Why is there still a difference?
Usually a balance of another date, last month’s open items that were not added, an entry missing from one of the files, or an item on the wrong side. The page lists the likely reasons, and the possible errors list shows entries that nearly match.
Does it work for any bank and currency?
Yes. Choose the currency of the account; dates written day first or month first, and amounts with dots or commas for decimals, are read from the files.
Are my files uploaded?
No. Both files are read and matched in your browser; nothing is sent anywhere.