Bank Book Excel Template

What is Bank Book? Definition, Format & Importance

Bank Book -Definition

Bank Book or Bank Journal is a subsidiary book of accounts that accountants use to maintain records of the banking transactions at their end. It records all the receipts and payments made through the bank.

In simple terms, the bank book is a book that records deposits, withdrawals, checks received, and issued. Often it is misunderstood as a passbook. But, both of them are different from each other.

A passbook is a record of transactions provided by the bank that is similar to a bank statement or a bank statement in book form.

Whereas the bank book is an accounting ledger that a company maintains to keep track of transactions at their end. It is often mixed with bank statements but in fact, both are different from each other.

Generally, businesses with higher volumes of banking transactions maintain this book. Whereas small and medium-sized businesses use the cash book to record these entries.

Purpose of Maintaining A Bank Book

The main purpose of maintaining a Bank Book is that it helps to simplify bank reconciliation. Eventually, this further helps to decrease discrepancies between accounts and bank records.

A small human error either by the bank official or the accountant can cause discrepancies. Thus, maintaining proper records and timely reconciliations helps us identify and correct those errors before the monthly/quarterly/yearly closing of accounts.

Furthermore, it helps to keep adequate balance in checking accounts to prevent bouncing back of checks. This helps the company to maintain credibility with vendors/suppliers.

Eventually, saving a lot of money by avoiding unnecessary fees charged to our account and the business’s smooth running.

Bank Book Format (Excel, OpenOffice Calc, & Google Sheet)

Similar to any other Accounting Ledger, Bank Book Template also consists of debit and credit sides. The debit side records the receipts and the credit side records the payments.

Bank Book Format

The debit and credit side consists of the following columns:

Date
Particulars
Description
Amount

It is a simple 3 step process.

  1. Record all inward and outward transactions.
  2. Define the type of transaction and add a description to each transaction.
  3. Reconcile weekly, biweekly, fortnightly, or monthly to match transactions with your bank statements.

Microsoft Excel OpenOffice Calc Google Sheet

Additionally, you can also download other Accounting Templates like Accounts Payable Template, and Accounts Receivable Template.

Furthermore, you can also download HR templates like Payroll Template With Attendance, Salary Slip Excel Template India, Salary Slip Format UAESimple Salary Sheet, and Employee Salary Sheet depending on the company requirement.

Click the button below to download the Printable Bank Book:

Printable Bank Book Format

PDF

Feel free to contact us for the customization of this template as per your requirement. We also design new templates based on your needs. You can hire us for our services on Fiverr or directly contact us at info@msofficegeek.com.

Common Reasons for Difference in Balances of Bank Book and Bank Statement

Here are few common reasons for the mismatch between bank book and the bank statement:

  1. Unpresented checks in the bank.
  2. Entries of bank interest and bank charges.
  3. Typographical errors by accountants and Bank employees in amounts.
  4. Misplacement of Checks or uncredited Checks by the bank.

Benefits of Maintaining A Bank Journal

  • Timely reconciliation.
  • Save us from overdrawing the account.
  • Monitor and prevent internal as well as external theft by unauthorized transactions.
  • Proper closing f accounts monthly/quarterly/yearly.
  • Helps in the proper recording of transactions in the book of accounts.
  • Helps in highlighting and monitoring excessive bank charges that add to the cost of the business.
  • Reconciliation of Accounts Payable as well as Accounts Receivable.

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