Bank Statement

What is a Bank Statement?

A bank statement shows transactions made with the bank.

How it Works

During the month, a business will make many cash transactions.

​Cash transactions include those where the business receives cash.

They also include transactions where the business makes cash payments.

​Deposits and Withdrawals

​At the end of each month, the bank will issue a bank statement. 

​The bank statement will contain a record of cash transactions the bank made with the business.

Cash receipts will appear as deposits.

And cash payments will appear as withdrawals


The bank statement will also show a balance.

This starts off as an opening balance .

The opening balance shows how much money the business had in the bank at the beginning of the month.

During the month, the business will make deposits.

Deposits will increase the balance.

​The business will also make withdrawals.

Withdrawals will reduce the balance.

​The balance at month-end is known as closing balancing.

It shows how much money the business has in the bank at month-end.

© R.J. Hickman 2020