What is meant by reconciling an account?
Reconciling an account often means proving or documenting that an account balance is correct. For example, we reconcile the balance in the general ledger account Cash in Checking to the balance shown on the bank statement. The objective is to report the correct amount in the general ledger account Cash in Checking. You will often need to adjust the general ledger account balance for items appearing on the bank statement that were not entered in the general ledger account.
I recall being asked to reconcile the general ledger account Freight Payable. What I needed to do was provide documentation that the balance in Freight Payable was proper. I proceeded to look at the shipments of recent sales and then determined how much we would be obligated to pay for the freight on those sales. We then adjusted the balance in Freight Payable to my documented amount. This reconciliation was done to have the correct account balance and to provide the outside auditors with documentation which could easily be reviewed.
I also reconciled the balance in Utilities Payable by computing the daily cost of each utility that the company used. The cost per day was then multiplied by the number of days since the last meter reading date shown on the utility bills already entered in our accounting system. We then adjusted the Utilities Payable account balance to be equal to the documented amount.
Learn more about Adjusting Entries and Bank Reconciliation.
About the Author: Harold Averkamp (CPA) has worked as an accountant, consultant, and university accounting instructor for more than 25 years.He is the author of the 2010 Master Accounting Download Package which has been praised for it's ability to simplify accounting in a way that anybody can understand.
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I want to your handout to explian about Bank Reconcilation. how to do?
postal 479
Country Ethiopia
City Bahir-Dar
Rood Fleg hiot Hospital
Bahir-Dar
Reconciling an account means proving or documenting that an accounting is correct.
why do we use account codes
Accounts reconciliation simply means, to conmfirm that the two accounts balances are accurate.
What is the usage of expense account?
Expense account is a holding place where you keep track of where you money is going. To simplify it, let’s say you as an individual Mr. Rahul have lots of expenses each month. There’s the electric bill, the water bill, the phone bill etc. All of these are expenses to you. In other words, you’ve to pay them each month. On the other hand, let’s say you’ve one income from your job.
In order for you to meet your obligations, you have to keep track of your expenses so that you can balance your income against your expenses or you’ll be in financial difficulties.
So, if you happen to be in financial difficulties because of a mismatch between your income and expenses. You’ll definitely want to check why of this imbalance. For instance by looking at your electric bill, you realize you could cut down here if you used two hours of electricity less than you used to.
Here is where the importance of Income Statements become crystal clear. It helps companies to look at a summary of their net income or net loss and where they need to make cuts to break-even and/or perhaps to even make some profit.
I hope this sheds some light of the importance of expense accounts.
I am entering the books (for 2008) for a friend, in quickbooks, but i dont have access to his file as it is corrupt, I have to enter opeing balances from the trial balance. I have set up all the charts of accounts, vendors and customers. But it has been 20 years since I had to enter opening balances. Trial balance shows Prelim, Adjs, Reclass, RepAnnotation, and Rep 08/06 columns. I’m Brain dead, which column do I use to enter the opening balance.
Sample
Chq Account Prelim (29,873.59) Adj 0.00, reclass 0.00, RepAnno (29,873.59), Rep 08/06 1,392.92.
Hope you can help me.
Thanks
the preparation of manufacture account
Dear friends,
Accounting Coaches.
I am very much confused, which programme (accounting package) is suitable for me, Tally,Peachtree,Quickbook,DacEasy…. I have lot of tasks, I am General Manager for Electric & Electronics Co. that buys and sells different items. On the other hand, I am an employee and work for big Firm in Dubai, that has agents in the world, ( Sales and Service).
The ony thing i still in surprising is, ” every accountant or bookeepr in Dubai, asks you a question related to the accounting programme he or she uses..!!!
Hope you turn me back with your best ideas and assistance.
Regards,
Mr. Awes Ahmed Gabow
Dubai - U.A.E
wat is credit and wat is debit
credit and debit should be equal to each other
what is the difference in credit and debit?
Good day,
Please I want to have the format for preparing bank reconciliation statement and adjusted cash books things that are supposed to be stated in it.
How can i become a good Accountant in future
Please help me
See our free website AccountingCoach.com and select Bank Reconciliation from the list of topics.
hi,
i hav a problem in bank reconaliton statement, and i would ilike to know how bank statement converted into leger account that is my problem plz sir if u give me hint to how to do r any pattern or hint i can get it easliy so plz sir if u hav any hint plz mail me sir this is a request for u ok