Workforce Readiness Skills

Balancing a Checkbook

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Balancing a Checkbook
Balancing a Checkbook - Balancing a checkbook is a process of comparing financial records with a monthly bank statement to determine exactly how much money is in the checking account.


Each month, the bank sends a statement that tells how much money was in the checking account on the date the statement was printed. It's important to compare this information with the checkbook records, or check register, to make sure they balance. (A check register is a list of checks, deposits, and withdrawals made to a checking account.)
Balancing a Checkbook
Transaction - A transaction is any use of a checking account, either to withdraw or deposit money.

All transactions should be recorded in the check register to make balancing a checkbook easier. As soon as the bank statement arrives in the mail, follow these steps to balance a checkbook:
Collect the check register, bank statement, debit card receipts, ATM and deposit receipts, a calculator, paper, and a pencil.
Review the "Checks Processed" section of the bank statement. Find these checks in the register, and place a check mark next to each. Write down any checks that haven't been recorded in the register on a separate piece of paper and total them.
Balancing a Checkbook
Compare and check off other charges listed on the bank statement, such as ATM withdrawals and debit card charges. If any charges are not recorded, write them in the register. Then total them on a piece of paper.
Compare the list of deposits on the bank statement with the check register, and check these off. If any deposits are not recorded, write them in the register. Then total them on a separate piece of paper.
On the back of the bank statement or on a piece of paper, list the balance from the check register. Subtract the checks and other charges not recorded. Add any deposits not recorded. This results in the updated checkbook balance.
Balancing a Checkbook
Write down the final bank statement balance (not the beginning balance) on a piece of paper or in the space provided on the back of the statement. This is the amount of money the bank says was in the account on the date the statement was printed. Any transactions made after this date won't be recorded on this statement.
Total any deposits made into the account that are not on the bank statement. Add these to the bank statement balance.
Look through the check register and total all checks and other withdrawals that are not on the bank statement. Subtract these from the bank statement balance. This is your updated statement balance.
Balancing a Checkbook


Now compare the updated bank statement balance with the updated checkbook balance. Do they match? If so, the checkbook is balanced! If they don't match, retrace the eight steps just described until any mistakes have been found. If there are still questions, call or visit the bank for more help.

Taking time to balance a checking account each month will help keep an accurate record of how much money is in the checking account.
Balancing a Checkbook
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What information is included on a bank statement?
Question 1 of 10
This is one of the most important pieces of information on the statement.
Checks included in the statement were written before the statement was printed. Try again.
Only the check register would have the checkbook balance. Checks may have been written since the bank statement was printed. Try again.
Only checks received by the bank that month will be on the statement. Try again.
Think about information found only on the bank statement.
Balancing a Checkbook
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Why is balancing a checkbook important?
Question 2 of 10
Checkbook information may help with tax preparation, but this is not the primary reason to balance a checkbook. Try again.
Checkbook records may help track spending, but this isn't the primary reason to balance the account. Try again.
By knowing exactly how much money is in the account, one is less likely to overdraw the account.
Balancing a checkbook is not the best way to know how much money has been earned. Try again.
It's possible to overdraw funds and "bounce" checks by withdrawing more money than is in the checking account.
Balancing a Checkbook
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What could you do if you forget to record the amount of a debit card withdrawal in your check register?
Question 3 of 10
This is one possible solution if you want to obtain an immediate answer. There is a better answer. Try again.
This is one possible solution if you've filed all your debit card receipts. There is a better answer. Try again.
This is one possible solution if you want to wait until your bank statement arrives. There is a better answer. Try again.
All of the above answers are possible solutions to learning the amount of a debit card withdrawal.
Debit card withdrawals are fairly easy to track.
Balancing a Checkbook
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What should be recorded in the check register in order to more easily balance a checkbook?
Question 4 of 10
The ending balance on the statement helps to balance the account. However, it wouldn't normally be recorded in the register. Try again.
Sales tax is not pertinent information for balancing a checkbook. Try again.
All deposits, checks, and other withdrawals need to be recorded.
This is not pertinent information for balancing a checkbook. Try again.
Balancing a checkbook is easy if all the necessary information has been recorded.
Balancing a Checkbook
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Why is it important to review the transactions on the bank statement and look for matching transactions in the checkbook?
Question 5 of 10
Reviewing transactions may help prepare a budget, but this is not why it's important to look for matching transactions. Try again.
It's important to make sure the bank statement and the checkbook balance agree on all transactions.
This is not why transactions are compared with each other. Try again.
Only one of the statements above reflects the most important purpose of this review. Try again.
When balancing a checkbook, compare the updated bank statement balance with the updated checkbook balance.
Balancing a Checkbook
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Which transactions in this check register have not yet cleared the bank?
Question 6 of 10
All transactions marked with a check have cleared the bank. Try again.
These transactions are checked, so they have cleared the bank. Try again.
Not all transactions have cleared the bank. Try again.
All transactions marked with a check have been cleared. Those not checked have not yet cleared the bank.
Cleared transactions are the deposits and checks that have already gone through the bank account.
Balancing a Checkbook
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When balancing the check register, which of the following should be subtracted from the register?
Question 7 of 10
If they are already recorded, they don't need to be subtracted again. Try again.
Checks and other charges not in the check register should be subtracted.
Deposits not listed on the bank statement should be added to the ending balance on the statement. Try again.
Deposits are added, not subtracted. Try again.
Look for differences between the bank statement and the check register.
Balancing a Checkbook
Click on the line that correctly completes the sentence.
When balancing a bank statement, start with ___ .
Question 8 of 10
Start with the checkbook balance to balance the checkbook, but not to update the bank statement. Try again.
This is the amount the bank considers to be accurate as of the time the statement was printed.
The beginning balance does not include the transactions on the statement that have been added or subtracted from this amount. Try again.
Start with the checkbook balance to balance the checkbook, but not to update the bank statement. Try again.
Start with the amount the bank would consider most accurate.
Balancing a Checkbook
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When balancing a checkbook, it's important to examine the bank statement and ___ .
Question 9 of 10
This is one item that needs to be updated, but this is not the best answer. Try again.
This is one item that needs to be updated, but this is not the best answer. Try again.
This is one item that needs to be updated, but this is not the best answer. Try again.
All three items above need to be updated to balance the bank statement.
The goal is to bring the bank statement up to date.
Balancing a Checkbook
Click on the line that correctly completes the sentence.
Checks on the bank statement that aren't recorded in the check register should be totaled and subtracted from ______.
Question 10 of 10
Make sure every check that has been written is subtracted from the checkbook balance.
The checks do need to be subtracted. Try again.
Checks on the bank statement have already been subtracted from the ending balance. Try again.
The adjusted statement balance is the amount obtained after everything for that month has been subtracted. Try again.
It's important to keep track of all checking account transactions.
Balancing a Checkbook