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> If $1000 left the bank account and two transactions totalling $1000 were recording, how can you match the ledger to the bank account? The ledger already matc
by WastingMyTime89 4y ago
> If $1000 left the bank account and two transactions totalling $1000 were recording, how can you match the ledger to the bank account?
The ledger already matches the bank account. You have 1000$ leaving it in two lines. Charges will likely be accounted separately anyway if they exist.
You probably mean the bank statement. If that’s the case, the answer is you do what is called reconciliation and sum the accounting entries. Reconciliation will be more complicated anyway because you will have entries in your accounting for a month which might be on a different bank statement entirely due to outstanding checks and deposits and bank processing delays.
- Naga 4y agoI did mean bank statement, thank you. I'm aware of how reconciliation works. I'm actually an accountant by trade. $1000 is a trivial transaction of course, but reconciliation becomes challenging when its thousands of transactions per month of differing amounts. If anything, transactions not matching the bank statement is a good way of increasing your audit fees as the auditor struggles to make sense of what your accounting system has recorded.