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  #1  
Old 05-07-2014, 09:42 AM
sharlene sharlene is offline
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Reconcile Bank Statement Question

Hi All,

What is the proper transaction to handle this:

1) Bank made an error one of my deposits (in April) showing $100 less than the amount of the QB deposit (QB is correct).

2) I tried to reconcile in QB and noticed the error. I called the bank and they corrected it in MAY.

3) What do I do in QB and on what date (April or May).

Thanks a million!
Sharlene
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  #2  
Old 05-07-2014, 12:30 PM
cojhl2 cojhl2 is offline
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First do not go back and change the original deposit!

On the current date(today) GJ a credit to the Bank account and debit to a offset account of your choosing(I use "Cash Interchange" account for these kind of things).

Then on the using the date the bank fixed the prob, GJ an entry Debiting the bank account and crediting the Cash Interchange.

Following this logic keeps your books chronologically like the bank transactions.

Document well what you did.

Aren't you glad you just did not download the transactions from the bank and take their word for it?
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  #3  
Old 05-08-2014, 07:36 AM
Rustler Rustler is offline
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Quote:
Originally Posted by cojhl2 View Post
First do not go back and change the original deposit!

On the current date(today) GJ a credit to the Bank account and debit to a offset account of your choosing(I use "Cash Interchange" account for these kind of things).
The only point I would disagree on is the date of the first journal entry, I would use the same date as the deposit date since that is when the error occurred

then when you do the recon for that statement, check off both the original deposit and the journal entry (shows as a payment/withdrawal) and the recon will be correct.

the following months recon will also be correct since the journal entry for the deposit will match the banks correction
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Old 05-08-2014, 09:05 AM
cojhl2 cojhl2 is offline
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Rustler you are probably more correct than me. I considered which date to use but then picked current date because that is the date which the error became evident. However the error actually occurred as you point out on the date of deposit.

Posting on the date of error/deposit makes it easier to recon as the entries would be together.

On further thought I go with you, use the date the error occurred.
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  #5  
Old 05-13-2014, 01:33 PM
sharlene sharlene is offline
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Cash Interchange Account

So if I want to set up an account to be used as a Cash Interchange Account in QB would it be a Current Asset account in the Chart of Accounts?

Is this method the same as treating the bank-error-underpayment as a "deposit in transit"?


Thanks!
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  #6  
Old 05-13-2014, 05:24 PM
cojhl2 cojhl2 is offline
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Which ever account you use is of no real significance except to ease documentation. It (the account) will always have a 0 balance as related to this correction.
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