Reconciliation explains the difference between the bank statement and the ledger. Enter the statement ending date and ending balance, then mark the transactions that actually cleared. Start from the previous reconciliation balance. The difference must reach zero without an unexplained adjustment. Finishing records the cleared selection as the statement's evidence.
Outstanding checks and deposits in transit remain in the books but are not ticked until they appear on a statement. Bank fees may require a new book entry before you can finish. A difference divisible by nine suggests a transposition, such as 450 entered as 540. Undo a mistaken reconciliation and correct the source rather than posting a plug to hide the discrepancy.