General Ledger Question: Download General Ledger PDF
List some steps for reconciliation process at account level?
Answer:
The reconciliation process at the account level typically comprises the following steps:
☛Beginning balance investigation. Match the beginning balance in the account to the ending reconciliation detail from the prior period. If the amounts do not match, investigate the reason for the variance in the prior period. If the account has not been reconciled for some time, it is possible that the error lies several periods in the past.
☛Current period investigation. Match the transactions reported in the account within the period to the underlying transactions, and adjust as necessary.
☛Adjustments review. Review all adjusting journal entries recorded in the account within the period for appropriateness, and adjust as necessary.
☛Reversals review. Ensure that all journal entries that should have reversed within the period have been reversed.
☛Ending balance review. Verify that the ending detail for the account matches the ending account balance.
☛Beginning balance investigation. Match the beginning balance in the account to the ending reconciliation detail from the prior period. If the amounts do not match, investigate the reason for the variance in the prior period. If the account has not been reconciled for some time, it is possible that the error lies several periods in the past.
☛Current period investigation. Match the transactions reported in the account within the period to the underlying transactions, and adjust as necessary.
☛Adjustments review. Review all adjusting journal entries recorded in the account within the period for appropriateness, and adjust as necessary.
☛Reversals review. Ensure that all journal entries that should have reversed within the period have been reversed.
☛Ending balance review. Verify that the ending detail for the account matches the ending account balance.
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