On a bank statement, a credit is money received, a debit is money paid out, and the balance is what remains after each line; cheque entries carry a cheque number you match to your own records. Reconcile every line against fee receipts and payments.
What do credit, debit and balance mean on a bank statement?
A bank statement lists every movement on the school's account in date order. Each line normally has a date, a description or reference, a debit amount, a credit amount and a running balance.
From the account holder's point of view, a credit increases the money in the account and a debit reduces it. The balance column is the amount left after that line has been applied. Statement layouts differ slightly between banks, so always check the column headings first.
- Credit: money received, such as fee deposits, transfers in or a cleared cheque deposited by the school.
- Debit: money paid out, such as salaries, supplier payments, bank charges or a cheque the school has issued.
- Balance: the running total after each line, not the amount you can necessarily spend today.
- Opening and closing balance: the figures at the start and end of the statement period.
How do you read a cheque entry?
A cheque entry usually shows the cheque number in the description or reference field. If the school issued the cheque, it appears as a debit on the date the bank paid it, which can be days after you wrote it. If the school deposited a customer's cheque, it appears as a credit only once it has cleared.
This timing gap is the most common reason the bank balance differs from the school's own books. A cheque written but not yet presented is an outstanding cheque. A cheque deposited but not yet cleared is a deposit in transit.
- Note the cheque number, date and amount on every line.
- Tick off each number against your cheque register or payment vouchers.
- List any issued cheques that have not appeared as debits yet.
- Treat returned or dishonoured cheques as a reversal that needs follow-up with the payer.
Why does the bank balance not match the school's books?
Differences usually come from timing, not error. Outstanding cheques, deposits in transit, bank charges the school has not yet recorded and fee payments made directly at the bank are the typical causes.
A simple reconciliation starts with the bank's closing balance. Add deposits in transit, subtract outstanding cheques, and compare the result with the balance in your books. Any remaining difference needs line-by-line checking.
- Start from the statement's closing balance.
- Add credits the bank has not yet shown.
- Subtract cheques issued but not yet presented.
- Record bank charges and direct credits missing from your books, then compare again.
How do bank fee credits appear and how do you match them?
When parents pay at a bank, in a banking app or at a kiosk, the school sees the money as credits on its statement. Each fee voucher carries a consumer number, which helps tie a credit to a family.
With EDUBase bank fee collection, the bank calls EDUBase when the parent pays, the challan is marked paid, and the finance ledger is updated without manual entry. The payment appears in Paid Challans and Payment History immediately, and bank payments are also visible in Day Wise Paid Challans like any other payment. That gives the finance officer a list to compare with the bank's credit lines.
Bank collection is enabled per school and per bank, and the school keeps counter payments alongside. The published bank partners are HBL, Bank Alfalah, Meezan Bank, PayPro and KuickPay, and through them 1Bill and 1LINK channels.
- Compare each bank credit with the matching entry in Day Wise Paid Challans.
- Use Payment History to look up a single family's payments.
- Check the Cash report in the finance module for what came in and went out on a day.
How do cheque payments by the school fit into the records?
For purchases, EDUBase Purchase Requisitions lets staff request money, an authorised person approve the full or a smaller amount, and the cashier issue payment by cash, cheque, transfer or online from a named account. The bill then settles the requisition.
This means each cheque the school issues has a request, an approver and an account behind it. When the debit appears on the bank statement, you can trace it to the person and purpose. The Outstanding advances report shows who still holds school money.
- Match the statement debit to the issued payment and its named account.
- Check that the amount paid does not exceed the approved amount.
- Use the general ledger and trial balance in Finance & Accounting to confirm the account totals.
Common bank statement items and how to check them
| Statement item | What it means | What to match it with |
|---|---|---|
| Credit | Money received into the school account | Fee receipts, Day Wise Paid Challans, other income entries |
| Debit | Money paid out of the account | Payment vouchers, salary payments, expense entries |
| Running balance | Amount left after each line | Your ledger balance for the same account and date |
| Cheque issued (debit) | Appears when the bank pays the cheque | Cheque register or issued requisition payment |
| Cheque deposited (credit) | Appears only after clearing | Deposit slip and receipt record |
| Outstanding cheque | Issued but not yet shown by the bank | Reconciliation list, subtracted from the bank balance |
| Deposit in transit | Recorded by the school but not yet credited | Reconciliation list, added to the bank balance |
| Bank fee credit | Parent payment made through the bank | Payment History and the voucher consumer number |
| Bank charges | Fees taken by the bank | A new expense entry in your books |
Related modules
- Bank Fee Collection — Parents pay at the bank, in their banking app or at a kiosk; EDUBase posts it automatically.
- Fee Reports & Defaulters — Know what was billed, what was collected and who still owes, per class, family or month.
- Finance & Accounting — Chart of accounts, journals, ledgers, trial balance, P&L and balance sheet, fed by fees and payroll.
- Purchase Requisitions — Ask, approve, pay and settle school purchases, with every rupee traceable to a person.
- Fee Management & Challans — Fee plans, monthly challans, discounts, family payments and receipts, without spreadsheets.