Question

What is meant by reconciling an account?

What is meant by reconciling an account?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Reconciling an account means documenting an account balance is correct or not. Reconciliation ensures that an account balance is correct.The objective of reconciling an account is to report the correct balance in the account so that the financial statement of company reflects true and fair view of the affairs of company during a particular financial year. For example, we reconcile the general ledger cash account with the balance shown in bank statement. For this, we normally prepare "Bank reconcilation statement" at the year end to match balance between cash account and bank account.The balance in Utilities Payable is also reconciled by computing the daily cost of each utility that the company used.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
3.What book reconciling item that refers to deposits credited by the bank to the account of...
3.What book reconciling item that refers to deposits credited by the bank to the account of the depositor but not yet recorded by the depositor as cash receipts? 4.If the company recognize a depreciation expense during the month, would this affect the cash account balance?
What is meant by the analysis of expense accounts? Explain how expense account analysis relates to...
What is meant by the analysis of expense accounts? Explain how expense account analysis relates to the tests of controls and substantive tests of transactions that the auditor has already completed for the acquisition and payment cycle.?
3. Briefly explain what is meant by: 1) account profit; 2) economic profit; and 3) zero...
3. Briefly explain what is meant by: 1) account profit; 2) economic profit; and 3) zero economic profit. (include equations if any).
The following data were gathered to use in reconciling the bank account of torres company: Balance...
The following data were gathered to use in reconciling the bank account of torres company: Balance per bank $12,175 Balance per comany records 9,480 Bank service charges 50 Deposit in transit 1,800 NSF check 1,250 Outstanding checks 5,795 a. What is the adjusted balance on the bank reconcilitation? b. Journalize any necessary entries for Torres Company based on the bank reconcilitation.
Bank Reconciliation The following data were gathered to use in reconciling the bank account of Lays...
Bank Reconciliation The following data were gathered to use in reconciling the bank account of Lays Company: Balance per bank$ 24,220Balance per company records20,205Bank service charges115Deposit in transit3,570NSF check1,310Outstanding checks9,010 a.  What is the adjusted balance on the bank reconciliation? $ b.  Journalize any necessary entries for Lays Company based on the bank reconciliation. For a compound transaction, if an amount box does not require an entry, leave it blank.     
A company is in the process of reconciling its bank account at Dec 31, 20x8. Relevant...
A company is in the process of reconciling its bank account at Dec 31, 20x8. Relevant data is as follows: Cash balance per books $25036 Items on bank statement that have yet to be adjusted for:     Bank service charges 116     Interest revenue 75 Outstanding cheques at December 31, 20x8 4447 Deposit in transit at December 31, 20x8 1907 What is the balance per bank at December 31, 20x8? Select one: a. $27535 b. $22455 c. $27617 d. $27576
The following data were accumulated for use in reconciling the bank account of Creative Design Co....
The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6: 1. Cash balance according to the company’s records at August 31, $42,920. 2. Cash balance according to the bank statement at August 31, $56,300. 3. Checks outstanding, $25,390. 4. Deposit in transit not recorded by bank, $13,325. 5. A check for $150 in payment of an account was erroneously recorded in the check register as $1,500. 6. Bank debit memo for...
The following data were gathered to use in reconciling the bank account of Azalea Company: Balance...
The following data were gathered to use in reconciling the bank account of Azalea Company: Balance per bank $ 17,980 Balance per company records 15,005 Bank service charges 85 Deposit in transit 2,650 NSF check 980 Outstanding checks 6,690 a. What is the adjusted balance on the bank reconciliation? $ b. Journalize any necessary entries for Azalea Company based on the bank reconciliation. For a compound transaction, if an amount box does not require an entry, leave it blank
Bank Reconciliation The following data were gathered to use in reconciling the bank account of Lays...
Bank Reconciliation The following data were gathered to use in reconciling the bank account of Lays Company: Balance per bank $ 34,690 Balance per company records 28,930 Bank service charges 160 Deposit in transit 5,110 NSF check 1,880 Outstanding checks 12,910 a. What is the adjusted balance on the bank reconciliation? $ b. Journalize any necessary entries for Lays Company based on the bank reconciliation. For a compound transaction, if an amount box does not require an entry, leave it...
1.interest revenue earned on the account is a reconciling item that is typically ________ in order...
1.interest revenue earned on the account is a reconciling item that is typically ________ in order to reconcile the book balance to the bank statement. a.added to the bank balance b.subtracted from the bank balance c.added to the book balance d.subtracted from the book balance 2.an internal control of jones co is to reconcile general ledger accounts to their underlying source data. this procedure addresses which goal of internal controls? a. ensuring accurate, reliable accounting records b.promoting operational efficiency c.encouraging...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT