Chapter 12, Before Moving On - Sage 50

Question 1

What are the steps required to activate & set up a Reconciliation & Deposits Journal?

Answer 1

a) Select the account to be used for the Reconciliation. b) Select the Reconciliation & Deposits tab.
c) Check  the Save Transactions for Account Reconciliation.
d) Select the Set Up button.
e) Modify the names of the linked accounts and select the appropriate account that will be used with the Reconciliation item linked.
f) Click Ok to save the settings.

Question 2

Explain the term “Unresolved Balance.”

Answer 2

The term “Unresolved Balance” is the dollar value difference between the bank statement balance and the general ledger bank account that cannot be identified. The differences will be located and correcting journal entries will be prepared and small amounts may be written off. If the differences occurred due to bank errors the clerk will contact the bank to have them make the necessary corrections.

Question 3

If a deposit does not match figures/entries on the bank statement, what possible causes could there be for the difference?

Answer 3

a. The amount recorded in Sage 50 Accounting is not correct, due to a discount not being recorded, or the wrong invoice is shown as being paid, etc.
b. The bank made an error in recording the deposited cheque amount.

Question 4

If a cheques does not match entries on the bank statement, what possible causes could there be for the difference?

Answer 4

a. A manual cheque recorded in Sage 50 Accounting is not correct.
b. The bank made an error in recording the cheque amount.