Format of a Bank Reconciliation Statement

A bank reconciliation statement typically consists of three main sections: the bank balance section, the book balance section, and the reconciling items section. The bank balance section lists the ending balance shown on the bank statement, while the book balance section displays the ending balance per the company’s accounting records. The reconciling items section outlines any discrepancies between the two balances, such as outstanding checks, deposits in transit, bank fees, or interest earned, which need to be adjusted to ensure the accuracy of both balances.