Where do you enter the difference after subtracting outstanding checks from the ending balance?

The difference after subtracting outstanding checks from the ending balance should be entered in the final line of the reconciliation process. This difference represents the adjusted balance after accounting for the checks that have not yet cleared the bank. This adjustment is crucial because it ensures that your reconciled balance reflects the true amount of cash available in your account.

In typical bank reconciliation procedures, the first few lines often represent the starting balances or various entries that reflect additional deposits or transactions. The last line is reserved for the final calculation, which provides a clear view of what the adjusted balance is after accounting for outstanding checks. This final figure is essential for ensuring that your personal records align with your bank's records, leading to a more accurate financial picture.