Bank reconciliation

Old year unreconciled account.

Dealing with drummonds.net a couple of problems became apparent:

• a duplicate unreconciled bank transaction had got into the final accounts
• This helped but was not the only reason the bank reonciliation was close but not accurate.

Non material difference

The difference was small < £100 so an opening year correction was done. In addition the prior year duplicate was reconciled and then corrected on the first day of the current year.

1. The accounts were opened back to the duplicate entry
2. The duplicate entry was reconciled.
3. The accounts were closed again to the end of the year and verified that the closing bank balance was not affected.
4. An adjustment entry was done on the first day of the year to correct the bank balance.
   • This can’t be a straightforward manual journal as you are not allowed to use the NC 100 for either side of the journal.
   • Put it in as a spend money transaction to code 960 Retained Earnings
   • Mark as reconciled

Done!