Quicken & Other Budget/Accounting Software/Reconciliation in Quickbooks



2012 bank recon for A Bank has been completed and balanced.
However, there is one journal entry that has been reversed from A Bank in January 2013 amount of $1,000. This journal has been posted against FX. Reversal of this journal have affected the 2013 accounts.

There is a difference of this $1,000 on every month reconciliation Jan-Dec 2013 for A Bank due to this reversal, how do i reconcile A bank then? How to treat the $1,000 difference without affecting the accounts?

ANSWER: Hi Farida

That is not possible.  If there is a erroneous entry in the bank account, you need to fix that. And that fix WILL affect the accounts in the month the fix is made. If the books are still open for 2013, create a new journal entry, date the entry 12-31-13,  post to FX and the bank account with a memo that describes the correction.

Linda Saltz, CPA
Advanced Certified QuickBooks Advisor

---------- FOLLOW-UP ----------

QUESTION: 2013 accounts still open and in progress.

I want to start doing the recon for A Bank starting from Jan2013, but due to one journal that has been reversed $1000 in Jan 2012 (journal dated in 2011), so there is a difference of $1000. Correction on the journal date and reversal date.

Fyi, this journal reversal is necessary and was done after 2012 audit completed.

How do i do the 2013 bank recon for A bank starting from Jan 2013, since there is a difference of $1000 due to this reversal?
i hope you understand my question

Sorry Farida

I missed this question.
If I understand you correctly you said
you have an uncleared $1000 transaction that will never clear.

There is a mistake in the books with this entry.
One of the following may have happened
1. A 2nd $1000 entry was cleared instead of the reversing journal entry
2. A reversing Journal entry was NOT required
3. A plug was made in a reconciliation during 2012 leaving this $1000 open.

Bottom line.
You have to make a Journal entry to remove that outstaning amount.
If you dont know where to post it, create an account called
Prior period adjustment as an other expense type and let the tax preparer
handle it.

Linda Saltz, CPA
Advanced Certified QuickBooks Advisor

Quicken & Other Budget/Accounting Software

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Linda Saltz, CPA, QBalance.com


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Accountant and CPA over 20 years. Specializing in accounting software for over 12 years, Certified QuickBooks Pro Advisor, QuickBooks seminar instructor since 1997.
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