 of course is here and I don't see him on the bank statement. So what we have now is is that we checked everything off everything that we checked off means that the blue items add up to that 109 415 and if we check these everything off that adds up to this 14 and is 24 149 then we have to reconcile because we've basically just matched everything out. So that's what we're looking to do in order to do that we need to first add these or adjust for these these two amounts are going to be amounts that are on the bank statement which we need we need to adjust for we need to just fix on our side. What we will do is we'll put them first into this book balance adjustment and then we'll actually make an adjustment making our GL change by those amounts. So what we're going to say here's our book balance now at this point in time and we're going to say that the withdrawals are going to have to decrease it so I'm going to say negative 100 for that 100 here and then the bank service charges are going to decrease it these are amounts that we in essence have to pay that aren't in our books. So those are I'm going to make these a light green and say we've kind of found a home for those those are going to be a part of our reconciling process and then we got to do the same for these yellow items here. These yellow items this is a deposit in this case that is not on the bank statement. Why would that be it's possible we made this deposit as of the end of the month out of as of the end of February has not yet cleared the bank and so it should then clear the bank in March. If we're concerned about that then what we can do is call the bank or go online and look at March and say hey did that clear in March. If it did then we're okay it's fine it hit the bank we're okay. What we just need to do now is put it in the reconciling item a temporary item a timing difference showing the difference between the bank balance as of the end of the month February 28th and our balance as of the end of the month February 28th. So we're going to put that in outstanding deposits here on the bank side here's the beginning bank balance and we're going to say that this deposit isn't included in that number and it should be it's just a timing difference they haven't yet got it not really their fault but their number is wrong because it should be increased by this 1641 and so we're going to say we found a home for that and then I'll make that light green all these are going to be the same these are checks that once again we wrote in February they haven't cleared yet the bank in February we expect them to clear in March then the next month the following month so we're going to say all these all these checks here we're going to say we expect them to clear in March they're okay the bank balance here is not quite right by those checks but but that's okay because we think it's going to clear next month so we're just going to note that as a timing different as of this point in time so we're going to put our cursor in EF or FE5 and I'm just going to point and click and add these up so in essence I'm adding this plus this and then I'm holding down control these two and that so all the yellow accounts if I just click on those it'll sum up to 1,942 let's do that with a formula and we'll point to all those so we are in FE5 I'm going to select equals I'm just going to point and add so I'm going to click this 154 plus this 614 plus this 180 plus this 365 plus this 629 and enter so once again those all we're doing is adding up these items there all the yellow items all right and that's going to be a negative number so if we add this up then now we're going to say that we accounted for everything we've we've got everything on the books and checked everything off that we need to check off and we should then reconcile so we're going to add these up I'm going to say this minus this plus this I'm going to do that with the sum function so we're going to say equals the sum which will take this positive number and then subtract the negative number plus the positive number we'll just bring it all the way down that gives us the 98995 we'll do the same thing here I'm going to say the sum function we'll take this minus the 100 minus the 20 so we're down here in FE16 we're going to say equals SUM double click the sum function highlight the 99 us 116 down and enter and there we have it now we're off by a dollar that's rounding that's okay I'm going to say that's okay and so we're tied out there so that's what we have at this point and note in order for this to work all we did is basically say all the blue accounts are the beginning balance and we're going to take and tie everything else out meaning we're going to find exactly what the differences are in terms of additions and and subtractions and just take and tie all those out and then show the reconciling items the items that need to be adjusted the items that are either on the bank statement and not on the books or on the books and not on the bank statement now next time what's going to happen is we have these two amounts that were on the bank statement not on the books we showed them as a reconciling item here but really they're not they're not something that we can just leave there there's something that we got to fix we and we need to make this balance decrease by those two items and that's what we'll do now and once we do we'll do next time and once we do that then we'll be left with this as really just our bank reconciliation because it'll reconcile to our actual account so this is often used in a book problem to show the book side of it but in reality of course we're just going to fix these items and give our true balance to be the book balance of 98996 and therefore our reconciling items should really just be the outstanding check and deposit in most cases