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In a bank reconciliation, what happens to the outstanding checks of the previous month?

The outstanding checks of the previous month will have either cleared the bank in the current month or will remain on the list of outstanding checks.

If an outstanding check of the previous month clears the bank (is paid by the bank) in the current month, you simply remove that check from the list of outstanding checks.

If an outstanding check of the previous month does not clear the bank in the current month, the check will remain on the list of outstanding checks until the month that it does clear the bank. In the bank reconciliation process, the total amount of the outstanding checks is deducted from the balance appearing on the bank statement.