Rules for bank statement

When the company receives its bank statement, the company should verify that the amounts on the bank statement are consistent or compatible with the amounts in the company's Cash account in its general ledger and vice versa.
This process of confirming the amounts is referred to as reconciling the bank statement, bank statement reconciliation, bank reconciliation, or doing a "bank rec." The benefit of reconciling the bank statement is knowing that the amount of Cash reported by the company (company's books) is consistent with the amount of cash shown in the bank's records.

bank reconciliation has for rules which are describe in the below

Rule 1. Bank statement balance to cash balance
Bank statement balance        
(+)outstanding lodgment     
(-) unpresent checks              
add or deduct bank error        
 adjusted bank/cash balance           

Rule 2.Cash balance to Bank statement balance
Cash book balance                       
(+) unpresent checks   
(-)outstanding lodgment
add or deduct cash book error 
adjusted bank statement balance 


Rule 3. Bank statement balance to cash balance
Bank statement overdrawn            (50000)      
(+)outstanding lodgment                 10000
(-) unpresent checks                        (7000)
add or deduct bank error        
 adjusted bank/cash balance              (47000) od


 Rule 4.Cash balance to Bank statement balance
Cash book balance  credit               (50000)                     
(+) unpresent checks                         7000
(-)outstanding lodgment                 (10000)
add or deduct cash book error 
adjusted bank statement balance (53000) od