 Hello and welcome to the session. In this session we are going to discuss the following question and the question says that Lisa received her bank statement dated June 20 for her checking account. She also maintained her check register. She compared her balance mentioned in the bank statement with her check register and she found the difference in both amounts. Reconcile her checking account. You have given her bank statement and check register. Now this is her bank statement and here is the check register. Now let us start with the solution of the given question. We are given the check register maintained by Lisa and her bank statement. Now according to Lisa's checking register she should have a balance of $1580.17 in her checking account and according to the bank statement she has $1,204.67 in her account. Now we will reconcile her bank statement so that balance in her bank statement matches with the balance in her check register. To reconcile the bank statement 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 then in bank statement add deposits recorded in your record but not shown on the statement. After this subtract total check outstanding that is the checks 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. Now we reconcile Lisa's checking account. Now first of all we record the balance in Lisa's check register. Now here we can see that the balance in her checking register is $1580.17 then we subtract any bank charges as shown in bank statement from her check register balance. Now we can see in the bank statement that on June 19 the bank deducted $13 as bank charges from her account. So from check register balance we deduct $13 and we get $1580.17 minus $13 which is equal to $1567.17. Now we will consider this amount as balance on check register and we will reconcile the bank statement so that the balance in the statement should also be equal to $1567.17. Then in bank statement add deposits recorded in her record but not shown on the statement. Now on comparing the bank statement and the check register we see that the check deposited on June 14 of $412 amount is not mentioned in the bank statement. It is because it is not yet cleared by the bank so we add this amount in the bank statement and we get $1204.67 plus $412 which is equal to $1616.67. Then we subtract total check outstanding that is the checks which have not yet been cleared by the bank on which they were drawn from the bank statement balance. Now again on looking at both check register and bank statement we see that the checks numbered 202 and 203 of electricity bill and phone bill are the outstanding checks. So we will deduct the amount of these two bills from the balance in the bank statement obtained in the previous step that is $1616.67 and we get $1616.67 minus $25 minus $24.5. And this is equal to $1567.17. Now this amount matches with the amount in the check register obtained in this step. Thus the amount in both check register and the bank statement now matches. Thus we have reconciled Lisa's account. This completes our session. Hope you enjoyed this session.