 Hello and welcome to the session. In our earlier session, we have discussed about checking accounts, credit cards and deposit slip. Now in this session we will discuss check register and reconciliation of checking accounts. Now we will see voters check register. The account holder can write a check from his checking account which authorizes the bank to pay the amount written in the check from the holder's account to a specified person or party. Now a check register is used to help the depositor to keep track of the payments made from the account through checks. We should note that the check register provides the following information i.e. check number and date, individual or business to whom check is written, amount of check, amount of any deposit made, balance in the account after writing the check, running balance. Let us see the following check register. Now in the first column we will write the check number. In second column we will write the current date. In third column of transaction description we will write the name of the individual or business to whom the check is written. In payment amount we will write the amount paid through check. In deposit amount we will write the amount deposited in the account and then in balance column we will write the amount of the check twice, one for the amount paid or deposited, then second for the available balance. Now suppose the available balance in Drain's account is $120 which is written here. Today on 23rd November she issued a check of $10 to Jim Flores. So on check register she writes check number 123 then current date i.e. November 23rd then Jim Flores to whom she made payment then she writes $10 i.e. the amount paid. Since no amount is deposited in her account so it is left blank. So now the available balance will be $120 minus $10 which is equal to $110. So it is written in the balance column in yellow row. Now on December 3 she deposited a check of $50.35 in her account. So now she writes check number i.e. 241 date December 3, deposit as transaction description. Now she writes $50.35 in deposit amount column. So total amount transacted is $50.35 and available balance is now $110 plus $50.35 which is equal to $160.35 which she writes in the balance column. Thus in this manner we can fill and read the check register. Now we are going to discuss reconciliation of checking account. Every month we receive a bank statement summarizing deposits, checks paid, interest earned and fees such as service charges. Suppose according to the bank statement the balance in your account is $150.35 and according to your checking register the balance in your account should be $255.75. The balance reported on the statement differs from the balance in the check register. So when the check register and bank statement differ the account holder much reconciles the balances. It means to adjust the balance in the bank statement and the check register so that both show the same balance amount. Suppose your bank statement shows balance of $2,235 as on April 30. Your check register shows the balance of $3,125. The difference exists because there may be some transactions through check before and after April 30 which have not yet been cleared by the bank but have been written by you on the check register. The other reason is the service charges and fees leveraged by banks. So to reconcile the account we follow the following steps. First of all record the balance in your check register. Then subtract any bank charges as shown in bank statement from your check register balance and if any interest is paid on your money by the bank as shown in the bank statement then add it to the check register balance in bank statement at deposit recorded in your record but not shown on the statement. Subtract total check outstanding that is the check which have not yet been cleared by the bank on which they were drawn from the bank statement balance. The required balance will equal the check register balance. Thus in this session we have discussed about check register and reconciliation of checking accounts. This completes our session. Hope you enjoyed this session.