Accounting Dictionary

Bank Statement

The bank statement is a listing of all the checks that have been cashed by payees, all the money that has been deposited, and all the fees that have been deducted from your account by a certain date and time.

Let’s say you started with $400 in the bank, deposited $500, and had a safety deposit fee of $50. You wrote three checks for $100 each, but only two people cashed their checks. Your bank statement would show a balance of $650. 400 + 500 -50 -100-100 = $650. Since the third $100 check was not cashed, it does not show up on your bank statement. The bank has no idea you wrote it.

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