Checkbook Balance Calculator

How to Use the Calculator

1. Enter Balances:

   • Checkbook Balance: Enter the current balance from your checkbook into the “Checkbook Balance” field.
   • Statement Balance: Enter the balance shown on your bank statement into the “Statement Balance” field.

2. Enter Service Charges and Interest:

   • Service Charges: Input any service charges (e.g., bank fees) that have not yet been recorded in your checkbook. These charges will be subtracted from your checkbook balance.
   • Interest: Enter any interest earned on your account that has not yet been recorded in your checkbook. This interest will be added to your checkbook balance.

3. Enter Outstanding Drafts:

   • Select the number of outstanding drafts (checks that have not yet cleared the bank).
   • For each draft, enter the amount in the corresponding fields.

4. Enter Outstanding Deposits:

   • Select the number of outstanding deposits (deposits that have not yet cleared the bank).
   • For each deposit, enter the amount in the corresponding fields.

5. Calculate:

   • Click the “Calculate” button. The calculator will reconcile the two balances by adjusting the statement balance with the outstanding drafts and deposits, and the checkbook balance with service charges and interest.

6. Review Results:

   • The calculator will display two totals:
     • Total #1: This is the adjusted statement balance after accounting for outstanding drafts and deposits.
     • Total #2: This is the adjusted checkbook balance after accounting for service charges and interest.
   • Reconciliation: The two totals should match if your checkbook is balanced correctly with your bank statement.

7. Clear:

   • Use the “Clear” button to reset the form and start over.

Example of Use

Imagine the following scenario:

• Checkbook Balance: $1,200.00
• Statement Balance: $1,500.00
• Service Charges: $15.00 (bank fees not yet recorded in checkbook)
• Interest: $5.00 (interest earned not yet recorded in checkbook)
• Outstanding Drafts: 2 checks with amounts $100.00 and $200.00 (total $300.00)
• Outstanding Deposits: 1 deposit of $50.00

Step-by-Step Calculation:

1. Adjusting the Statement Balance:

   $$\text{Adjusted Statement Balance}=\text{Statement Balance}-\text{Outstanding Drafts}+\text{Outstanding Deposits}$$$$\text{Adjusted Statement Balance}=\mathrm{\$}1,500.00-\mathrm{\$}300.00+\mathrm{\$}50.00=\mathrm{\$}1,250.00$$

2. Adjusting the Checkbook Balance:

   $$\text{Adjusted Checkbook Balance}=\text{Checkbook Balance}-\text{Service Charges}+\text{Interest}$$$$\text{Adjusted Checkbook Balance}=\mathrm{\$}1,200.00-\mathrm{\$}15.00+\mathrm{\$}5.00=\mathrm{\$}1,190.00$$

Final Comparison:

• Total #1 (Adjusted Statement Balance): $1,250.00
• Total #2 (Adjusted Checkbook Balance): $1,190.00

In this example, the totals do not match, indicating a discrepancy. You would need to review your records to identify and resolve any differences.