Reconciling Transactions in Double-Entry bookkeeping

Question 1

Step 4 in Reconciliation

Answer 1

If discrepancies or differences are found during the comparison, investigate and identify the reasons for the errors or omissions. Common causes can include data entry errors, missing documents, or incorrect categorization of transactions.

Question 2

Step 6 in Reconciliation???

Answer 2

Once all adjustments are made, ensure that the ledger/journal entries match the documentation accurately.
**Document the reconciliation process and any changes made to provide a clear audit trail and reference for future analysis.

Question 3

Step 3 in Reconciliation

Answer 3

Look for discrepancies, such as errors in amounts or missing entries.

Question 4

Step 2 in Reconciliation

Answer 4

Compare the entries in the ledger/journal with the corresponding documentation. Ensure that the transactions regarding the accounts affected, the amounts involved, and the transaction dates are accurately recorded.

Question 5

Step 5 in Reconciliation

Answer 5

Make any necessary adjustments to rectify the identified discrepancies. This may involve correcting errors, adding missing entries, or reallocating transactions to the correct accounts.

Question 6

Step 1 in Reconciliation

Answer 6

Gather all relevant documentation, such as receipts, invoices, bank statements, and other supporting records. These documents will be your reference for comparing and validating the recorded transactions.

Question 7

Reconciliation

Answer 7

Involves comparing entries in the ledger/journal to available documentation, such as receipts and invoices.
By performing this process, you can verify that all transactions have been recorded correctly, in the right places, and with accurate amounts.

Question 8

Step 2 in Reconciliation

Answer 8

Compare the entries in the ledger/journal with the corresponding documentation. Ensure that the transactions regarding the accounts affected, the amounts involved, and the transaction dates are accurately recorded.

Question 9

What do you compare the ledger/journal entries to when Reconciling Transactions?

Answer 9

To available documentation, such as receipts and invoices.

Question 10

Double-entry bookkeeping

Answer 10

Every transaction is recorded twice, a method of recording financial transactions that ensures accuracy and balance in accounting records.

Question 11

Double-entry bookkeeping follows the principle that every transaction has two aspects; a _____ * a _____.

Answer 11

Debit and credit

Question 12

Both aspects must be recorded to maintain the equilibrium of the accounting equation.

Answer 12

Debit & Credit

Question 13

This step in the Accounting Cycle is where you would see a profitable product.

Answer 13

Step 2: Record & Post Transactions