RECONCILING THE LEDGER ACCOUNTS WITH A SUPPLIER STATEMENT OF ACCOUNT

Question 1

RECONCILING THE LEDGER ACCOUNTS WITH A SUPPLIER STATEMENT OF ACCOUNT

Answer 1

RECONCILING THE LEDGER ACCOUNTS WITH A SUPPLIER STATEMENT OF ACCOUNT

LEDGER ACCOUNT = LIABILITY in the customer’s account as it records the money owed to the supplier.

STATEMENT OF ACCOUNT = ASSETS in the supplier’s accounts as it records the amount they expect to receive.

STEPS 1) Identify which transactions already appear on both 
statement and ledger account.

2) Identify unmatched transactions, these are the things
we will deal with in the reconciliation statement.

3) Remember we are reconciling from the closing balance
to closing balance.

4) When deciding or trying to decide whether a transaction is going to be added or deducted, think about how will the first figure you’ve been presented with at the top of your reconciliation be affected to arrive at the figure that you’re reconciling it against.